The Gateway Project

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Redevelopment Agencies were dissolved on February 1, 2012 Oroville RDA assets were transferred to the Successor Agency (SA) and then to the City of Oroville The State Department of Finance (DOF) oversees the dissolution and asset liquidation process DOF required the SA to develop a Long Range Property Management Plan (LRPMP) and have it approved by the Oversight Board (OB) and DOF The Oroville SA approved LRPMP requires that the two Gateway properties be developed by transfer to a private developer for $1.00 Revitalization of the Gateway to downtown Oroville remains a high priority to the City and its development benefits all of the taxing entities

The Gateway Project Located at the corner of Montgomery Street and Feather River Blvd acres total, former Oroville RDA and 0.63 City of Oroville Proposed to be sold to Snyder Commercial Real Estate, LLC for $1.00 and the developer will inject approximately $35 million into the project over five years The County of Butte would then determine the assessed value and the property tax roles would reflect the fair market value Snyder Commercial Real Estate, LLC will be the developer Developer to post a $100,000 letter of credit to insure that the milestones are met The $100,000 would be turned over to the Butte County Auditor-Controller’s office for distribution to the taxing entities once received

Summary The sale for $1.00 insures that the developer develops the property in a timely manner, five years or less The $100,000 letter of credit provides for compensation if there is a lack of performance The property goes on the property tax rolls as soon as the escrow closes at a value determined by the Butte County Assessor’s Office (fair market value) Selling the property for $1.00 and getting it developed in five years generates $968,807 more revenue to the County versus selling the property for $1.1 million and it is not developed The total benefit to all the taxing entities is $5,672,053 vs $1,356,264 if sold but not developed