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IV. PRELIMINARY ASSESSMENT OF PROPOSED METHOD OF FINANCING, <br />ECONOMIC FEASIBILITY, AND REASONS FOR INCLUDING DIVISION OF TAXES <br />PURSUANT TO SECTION 33670 <br />Section 33344.5(c) of the CRL provides that the Preliminary Report for the merger contain a <br />preliminary assessment of the proposed method of financing the Merged Project Area, including <br />an assessment of economic feasibility and the reasons for including a provision for the division <br />of taxes pursuant to Section 33670 of the CRL. Economic feasibility, for purposes of this <br />analysis, is defined to be a comparative analysis of anticipated costs for implementation of the <br />Merged Project Area and the resulting revenues expected to be generated. Economic feasibility <br />is determined through a summarized feasibility cash flow analysis of the Project Fund for the <br />Merged Project Area as summarized on the Table 4 cash flow. <br />A. ESTIMATED TOTAL PROJECT COSTS <br />A determination of economic feasibility requires an identification of the future resources to <br />finance future costs associated with redevelopment of the Merged Project Area and the <br />elimination of remaining blighting conditions. Redevelopment could require significant <br />participation from the Agency in activities to promote and achieve the desired goals and <br />objectives of the respective Redevelopment Plans and to address blighting conditions. <br />The redevelopment program described in this section outlines a set of activities to be <br />implemented by the Agency for the purpose of facilitating private reinvestment in the <br />Merged Project Area and eliminating physical and economic blighting influences, and <br />increasing, improving and preserving the community's supply of low and moderate income <br />housing. The estimated costs of potential future redevelopment programs over the term of <br />the cash flow projection are as follows: <br />Agency Bond Debt Service <br />Transfers In (Credit) <br />ERAF (presumed) <br />Administration <br />Contractual Obligations <br />Budgeted Projects <br />Affordable Housing <br />Future Loan Repayments <br />Future Discretionary Uses <br />Total Estimated Expenditures <br />Preliminary Report for the Merger of the <br />ZAHIZIT <br />Santa Ana Redevelopment Projects <br />040.006,SA <br />19090003003I02127 /04 <br />84 <br />$231,702,000 <br />(19,804,000) <br />48,040,000 <br />106,763,000 <br />254,318,000 <br />2,456,000 <br />579,692,000 <br />70,458,000 <br />184.270,000 <br />$1,457,895,000 <br />Keyser Marston Associates, Inc. <br />Page 16 <br />