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2206002.SA Page 9 <br />19090.018.019 June 3, 2022 <br /> <br />V. CONSIDERATION RECEIVED AND COMPARISON WITH THE ESTABLISHED <br />VALUE <br />The Ground Lease imposes extraordinary controls on the Project. The impacts created by <br />these requirements reduce the value of the Project from $4.11 million at the highest use <br />permitted under the current zoning, to the established fair reuse value of negative $4.6 million. <br />The Ground Lease requires the Tenant to pay Base Rent to the Agency based on Residual <br />Receipts payments that are generated from cash flow generated by the Project over time. At <br />the end of the Ground Lease Term, the Tenant must repay any outstanding balance of Agency <br />Base Rent. Given that the Base Rent Payments received by the Agency will be greater than the <br />established fair reuse value of negative $4.60 million, it can be concluded that the Agency is <br />receiving fair consideration for the interests being conveyed to the Tenant. <br />VI. BLIGHT ELIMINATION <br />The Project includes 85 units that will be subject to long-term income and affordability <br />covenants. In accordance with California Redevelopment Law, as portrayed in the California <br />Health and Safety Code Section 33433, the conveyance of property that results in the provision <br />of housing for low- or moderate-income persons satisfies the blight elimination criteria imposed <br />by Section 33433. Furthermore, the conveyance of the Agency Site will assist in the elimination <br />of blight by allowing for the redevelopment a vacant property. Thus, the Project fulfills the blight <br />elimination requirement. <br />VII. CONFORMANCE WITH THE AB1290 IMPLEMENTATION PLAN <br />The last AB1290 Implementation Plan completed by the Agency was for the 2010 to 2015 <br />period. The Implementation Plan contemplates the development of affordable housing within <br />the Merged Project Area. Specifically, under the heading Short-Term Goals and Objectives, the <br />Implementation Plan includes the following: “Expand the community’s supply of housing, <br />including opportunities for low and moderate income housing.” Therefore, the proposed Project <br />is in conformance with the AB 1290 Implementation Plan. <br />EXHIBIT 14