pages: CityCouncil/2005-08-16.pdf, 6
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CityCouncil | 2005-08-16 | 6 | Counci lmember Daysog stated the $13 million bonds issued for the Cineplex and historic theater would need to be paid back. Mr. Kelly stated that the bonds have already been issued based upon the CIC's cash flow; the income from the theater project does not have to repay the bonds the bonds are financed by CIC's existing cash flow. Councilmember Daysog inquired whether the cash flow is tax increment. Mr. Kelly responded in the affirmative; the cash flow is the existing tax increment the tax increment does not come out of the General Fund and is not money that would have gone to the General Fund; the tax increment is redevelopment money that has to be used for certain limited purposes; redevelopment law prohibits the money from being used for Police and Fire services. Councilmember Daysog inquired whether tax increment could be used for public infrastructure in a redevelopment area, to which Mr. Kelly responded in the affirmative. Councilmember Daysog inquired whether General Fund costs that are used for public improvements in a redevelopment area could be covered by redevelopment funds. Mr. Kelly responded that the purpose of the redevelopment financing is to provide economic development, stimulate growth, and remove blight redevelopment financing is not intended for public improvements that would have otherwise occurred; theoretically, redevelopment funds could be used. Councilmember Daysog stated that the argument is that redevelopment money cannot be used for General Fund type activity with regards to infrastructure. Mr. Kelly stated redevelopment money is all the tax increment captured above a certain base; redevelopment law limits the City to use the funds for remediation of blight. The Development Services Director stated that redevelopment law is very clear that new improvements need to be made; funds cannot be used for operating and maintenance costs; redevelopment law findings that state there are no other public monies available must be made to do an improvement, like a street. Councilmember Daysog stated that there is an argument that Regular Meeting Alameda City Council 6 August 16, 2005 | CityCouncil/2005-08-16.pdf |