SR 05:309 - Laserfiche WebLink

If, five years after the date of the second installment, there are funds that have not been spent, BART will return those funds to the parties, on a pro rata basis if only a portion of the funds are left, If, however, there are no funds (or the fund amount is less than what the parties have funded), BART is under no obligation to repay the whole of the funded amounts, The dollars that the City is committing under this Agreement is about the same as the property tax revenues it was pledging in the prior MOU, Here, however, there is the possibility that the City will be repaid where under the prior MOU that was not the agreement. And, should the private development occur on the BART property, the City would retain all of the property tax revenue it receives from such development. Accordingly, staff believes that this proposed financial arrangement is more favorable than the arrangement in the 2000 MOD because there are fewer unknowns (i.e" the amount of the commitment is fixed) and the existence of this reserve will allow BART to obtain more favorable terms as to its bond issuance, FISCAL IMP ACT As to the sources for funding this commitment, staff will recommend that the City use its 20% share of the Tri-Valley Transportation Fee; there are sufficient funds in that account for that purpose, RECOMMENDATION Staff recommends that the City Council authorize the City Manager to sign the Funding Agreement in a final form as approved by the City Attorney, Respectfully Submitted, ~~^ ~ !I1lcMIIl!;t-! Susan Rossi Michael H. Roush Nelson Fialho Finance Director City Attorney City Manager Attachment SR:05:309 Page 3 ------"-