1. A City Council Workshop on Redevelopment July 12, 2011

2. Agenda for this evening 1.Background State Legislation that Changed Redevelopment Law 2.Financial Impacts to the City of Pinole Real Estate Holdings Future Income FY 2011/12 Budget Ongoing Programs & Projects 3.Conclusions & Recommendations

3. OVERVIEW OF ABX1 26 AND ABX1 27 Changes to Redevelopment Law Part One: Background 3

4. DISTRIBUTION TO TAXING ENTITIES % of distribution of disposition of assets and remaining tax increment to Taxing Entities: School District – 57% City – 19% County – 15% Special Districts –9% 4

5. Part Two: Financial Impact to the City of Pinole 5

6. Policy Issue to Consider: Should the City of Pinole retain the Redevelopment Agency ? Financial Factors that must be considered: 1.Impact to Real Estate Holdings 2.Impact to Future Income 3.Impact to FY 2011 – 12 Operations Budget 4.Impact to Ongoing Projects and Programs 6

7. 1.IMPACT TO REAL ESTATE HOLDINGS 7

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10. Impacts to Real Estate Holdings RetainDissolve Value of Proceeds from sales – (One Time Monies) $26 Million $4.9 Million Use of proceeds from sales Restricted to RDA activities Unrestricted Timing and Pricing of property sales Decided by RDA Board Decided by Oversight Board Selection of Buyer (i.e. future use of property) Decided by RDA Board Decided by Oversight Board 10

11. Distribution of Real Estate Proceeds Million M 11

12. 2. IMPACT TO FUTURE INCOME 12

13. Future Income Stream 1.Tax increment (non Housing) 2.Tax increment (Housing) 3.Loan payments to Agency 1.City investment agreement $2.5 Million total 2.SERAF $4.2 Million total 4.Lease payments to Agency 1.Pinole Vista Shopping Center $530,000 / yr 2.Pinole Assisted Living $540,000 / yr 13

14. Cumulative Impact to Income Stream RetainDissolve Non Housing HousingNon Housing Housing Tax Increment net of Admin and Debt$ 14.4$ 6.0$ 4.5$ 0 Community Remittances “Pay to Play” $ (13.2)$ 0 Loan Payments to Agency $ 2.9$ 4.0$ 0$ 8.2 Lease payments to Agency $ 3.9$ 0 Subtotal$ 8.0$10.0$ 4.5 $ 8.2 Grand Total Years 1 - 7$ 18 Million$ 12.7 Million 14

15. Cumulative of Seven Year Revenue Stream 15

16. 3.IMPACT TO ADOPTED FY 2011 – 12 OPERATING BUDGET 16

17. Sample of RDA Funded Programs and Projects Economic Development and Business Assistance Graffiti Abatement and Neighborhood Clean up Shopping Center Management Community Group Funding Promotional Events Commercial Rehab Loans Middle School Soccer Field Fernandez Park Restrooms Pinole Creek and Bay Trail ( Match) Street and Storm Drain Improvements Fiber Optic Upgrades Pinole Bank Building Median Enhancements and other Beautification Projects 17

18. CONCLUSIONS AND RECOMMENDATIONS 18

19. Summary of Impacts Total For Seven YearsRetainDissolve Net Proceeds from liquidation of Real Property - Non Housing $ 23 M$ 4.3 M Net Proceeds from Liquidation of Real Property - Housing $ 3 M$.6 M Seven Year Cumulative Revenue - Non Housing $ 8 M$ 4.5 M Seven Year Cumulative Revenue – Housing $10 M$ 8.2 M Seven Year Cumulative RDA Administrative Cost Reimb. $ 3 M Return to Source ( Add’l Property Tax) $ 2 M TOTAL$ 47 M$ 19.6 M 19

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21. Conclusions If RDA is retained: 1.City will have significantly more one-time and ongoing funding 2.City retains Housing Program - Safeguards PALC settlement funds. - Maintains control over location and concentration of affordable housing units. 21

22. Recommendations 1.Retain RDA 2.Adopt ordinance at Special meeting in August 2011 3.Review FY 2011/12 RDA Budget on August 16, 2011 22