1. Economic Development Division Successor Agency Actions Pursuant to AB X1 26 City Council February 6, 2012

2. Economic Development Division First, the Successor Agency (“SA”) must establish its basic governance, rules and regulations Second, the SA must adopt an Enforceable Obligation Payment Schedule (“EOPS”) Third, the SA must create a Redevelopment Obligation Retirement Fund 2 CRA v. Matosantos Implications

3. Economic Development Division Date of Meetings: Monday ( concurrent with City Council ) Officers:  Mayor as Chair/Vice-Mayor as Vice-Chair  Council Members as Directors  City Manager as Executive Director  City Clerk as Secretary  City Attorney as General Counsel  City Finance Director as the Finance Officer SA is a legal, separate entity SA assets and monies maintained separately from City assets and monies 3 Proposed Basic Governance Rules

4. Economic Development Division Adoption of the EOPS enables the SA to make payments on its enforceable obligations Lists all SA’s total outstanding debt, total amount due during current FY and debt and obligations and payment amounts from Feb-June 4 Enforceable Obligation Payment Schedule Downtown Reimbursement Agreement$12.4 million Tax Allocation Bond Payment$1.2 million County Admin Fees$522,000.00 Housing Set-Aside$2.8 million Certificates of Participation$5.2 million Promissory Notes$4.9 million Administrative Reimbursement$1.2 million Total$28.2 million

5. Economic Development Division Required per AB 26  Purpose of the fund is to receive money from the County Auditor-Controller for the payment of enforceable obligations of the Successor Agency 5 Redevelopment Obligation Retirement Fund

6. Economic Development Division By 3/1/12- SA must adopt an ROPS. This is a permanent schedule of obligations that replaces the interim EOPS. The County AC allocates property tax to the SA to pay debts listed on the ROPS. By 4/1/12 - SA reports to the County AC whether the total amount of property tax available will be sufficient to funds its ROPS obligations over the next six month fiscal period. Before 4/15/12 – SA must send the ROPS to the SCO and the DOF for approval. The ROPS is also subject to approval of the Oversight Board. 6 Next Steps as a Successor Agency

7. Economic Development Division By 5/1/12 – Oversight Boards begin operations, files report of membership with DOF. Starting 5/1/12 – SA may only pay those obligations listed in the approved ROPS. The approved ROPS replaces the EOPS. On 5/16/12 and 6/1/12 and each 1/16 and 6/1 thereafter– the County AC transfers property tax to the SA in an amount equal to the cost of the obligations specified in the ROPS which is then transferred into the SA’s Redevelopment Obligation Retirement Fund. 7 Next Steps as a Successor Agency

8. Economic Development Division Recommendation That the Board of Directors of the Successor Agency to the Pasadena Community Development Commission take the following actions: 1.Adopt a resolution establishing basic governance, rules, and regulations for the Successor Agency as a new and distinct legal entity from the City. 2.Adopt by resolution an enforceable obligation payment schedule. 3.Adopt a resolution creating a Redevelopment Obligation Retirement fund. 8 Conclusion