Title
Staff Report for Cleanup Resolution of the City Council of the City of San Leandro Electing to Receive Statutory Passthrough Payments with Respect to the West San Leandro/MacArthur Boulevard Redevelopment Project Area
Staffreport
RECOMMENDATIONS
Staff recommends adoption of the proposed resolution electing to receive passthrough payments for the West San Leandro/MacArthur Boulevard Redevelopment Project Area.
BACKGROUND
Assembly Bill 1x26, which eliminated redevelopment agencies as of February 1, 2012 and defines the process of managing agency assets in the future, mandates that all taxing entities that receive passthrough payments from a redevelopment agency are entitled to receive those payments in the future as part of the distribution of funds previously defined as redevelopment tax increment. Although it did not previously elect to receive them, the City of San Leandro is entitled to a share of passthrough payments from the San Leandro Redevelopment Agency’s project areas. Those payments currently total slightly more than $300,000 annually. Although no action is necessary to receive the passthroughs from the Joint Project Area, the recommended action is needed to formally elect to receive the passthroughs from the West San Leandro/MacArthur Boulevard (WSL) Redevelopment Project Area.
Analysis
Health and Safety Code Section 33607.5(a) provides that with respect to redevelopment plans adopted on or after January 1, 1994, a redevelopment agency shall pay specified statutory passthrough payments to affected taxing entities, including the community that formed the redevelopment agency, if the community elects to receive such payments. In the case of the WSL Project Area, the payment obligation is estimated to be $120,000 annually.
Specifically, Health and Safety Code Section 33607.5(b) provides that commencing with the first fiscal year in which a redevelopment agency receives tax increments and continuing through the last fiscal year in which the a...
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