COUNTY OF SAN MATEO

Inter-Departmental Correspondence

County Manager's Office

DATE:

May 27, 2004

BOARD MEETING DATE:

June 8, 2004

TO:

Honorable Board of Supervisors

FROM:

Paul T. Scannell, Assistant County Manager

SUBJECT:

City of San Mateo Redevelopment Funds for Expo Center Improvements

RECOMMENDATION:

Adopt a Resolution making specific findings of fact and accepting and designating funds from the Redevelopment Agency of the City of San Mateo for the improvement of the San Mateo County Expo Center.

BACKGROUND:

In 1981 the County and the City of San Mateo entered into an agreement that allowed the City and its Redevelopment Agency to create the first of the City's redevelopment areas and provided for certain property taxes to be "passed through" to the County of San Mateo. That agreement was in accordance with the redevelopment law as existed then. In 1996 the County and the City/Agency entered into a further agreement concerning the expansion and amendment of the earlier redevelopment plan. That Facilities Agreement provided in part that the City Redevelopment Agency would contribute certain funds to the County for projects on County facilities located within the City of San Mateo. The monies were to be paid from sequential tax allocation bonds issued by the Agency, $3 million from a second issuance and $1 million from a third tax allocation bond issue. In 2001 the City/Agency requested that the County subordinate its entitlement under the 1996 Facilities Agreement to allow the Agency to maximize its June 2001 bond issue. The County agreed to enter into the subordination agreement in return for a reconfirmation from the City/Agency to pay the $3 million to the County for projects mutually agreed to by the City/Agency and the County. The City/Agency is prepared to pay the initial $3 million toward projects at the San Mateo Expo Center.

DISCUSSION:

The City/Agency has indicated its desire that the County make certain findings in order to assure that the payment of funds pursuant to the Facilities Agreement is consistent with the provisions of State Health and Safety Code Section 33445(a)(2)(Redevelopment Law). The Expo Center has been anxious to improve its entrance and various buildings for a number of years and the County has not been able to identify any available funds to make such improvements. The adoption of this resolution will allow those certain improvements, as identified, to go forward utilizing the City/Agency funds.

VISION ALIGNMENT:

The adoption of this resolution keeps the commitment of Responsive, Effective and Collaborative Government and goal number 22: County and local governments effectively collaborate.

FISCAL IMPACT:

The payment by the City/Agency of the agreed upon $3 million will not impact the County's fiscal situation, but will allow that value of improvements to be made to the County property at the Expo Center.