Staff Report/Resolution Opposing the Admin’s Proposal to Abolish Redevelopment Agencies in California.

STAFF REPORT

AGENDA ITEM: Resolution of the City Council of the City of Livingston Opposing the Administration’s Proposal to Abolish Redevelopment Agencies in

California.

MEETING DATE: February 1, 2011

PREPARED BY: Victoria Lewis, Acting City Manager

REVIEWED BY: Victoria Lewis, Acting City Manager

RECOMMENDATION:

Staff recommends approval of Resolution No. 2011- , opposing the Administration’s proposal to abolish Redevelopment Agencies in California.

BACKGROUND:

The Redevelopment Plan for Livingston was adopted by Ordinance No. 288 on September 12, 1985, and subsequently amended by Ordinance No. 474 on December 16, 1997 to add territory and to make other modifications to the Redevelopment Plan. The Agency adopted its first Implementation Plan on January 4, 2000 (Resolution No. 2000-01). CCRL Section 33490 (a)(1)(B) provides that adoption of an Implementation Plan shall not constitute a project within the meaning of Section 21000 of the Public Resource Code, and, therefore, CEQA compliance is not required prior to approval and adoption of the
Implementation Plan. Implementation Plans are updated after five years. The current plan, the 2005-2009 Implementation Plan by Urban Futures, was the second implementation plan and was adopted by the Agency on November 20, 2007.

DISCUSSION:

Governor Brown recently released a budget proposal that includes the elimination of enterprise zones and redevelopment agencies. The Enterprise Zone Program in which Livingston participates, targets economically distressed areas throughout California by providing special incentives designed to encourage business investment and promote the creation of new jobs. Redevelopment monies builds and improves communities, spurs job growth and taxes and is the most significant provider of infrastructure, urban development and affordable housing in the state.

Access to redevelopment funding is the prime consideration of developers looking to build new affordable housing. Redevelopment funding in Livingston has traditionally been set aside with a goal of creating senior or low income housing projects. A lack of redevelopment funding will delay the creation of this type of housing for many years to come.

FISCAL IMPACT:

The City of Livingston Redevelopment Agency receives revenues approximately in the amount of $572,885 from property taxes collected each year. The amount of property taxes received each year fluctuates as property values increase or decrease. The passage of the Governor’s budget proposal would result in elimination of such revenues to the City in the future.

ATTACHMENTS:

1. Resolution No. 2011-

RESOLUTION 2011-

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LIVINGSTON OPPOSING THE ADMINISTRATION’S PROPOSAL TO ABOLISH REDEVELOPMENT AGENCIES IN CALIFORNIA

WHEREAS, as part of its 2011-12 budget proposal, the Governor of California has proposed permanently abolishing California’s more than 400 local redevelopment agencies; and

WHEREAS, this proposal represents more of the same misguided and illegal State

budget raids of local government funds that voters have repeatedly sought to end, most recently in November 2010 when an overwhelming 61 % of voters elected to stop State raids of local government funds, including redevelopment funds; and

WHEREAS, this proposal will bring very little financial benefit to the State. According to the State Controller’s Office, redevelopment agencies have more than $87 billion in bond and other contractual obligations that legally must be repaid before revenues are available for any other purpose; and

WHEREAS, throughout California, redevelopment activities support 304,000 jobs

annually, including 170,600 construction jobs, contribute over $40 billion annually to  California’s economy in the generation of goods and services, and generate more than $2 billion in state and local taxes in a typical year; and

WHEREAS, this proposal will destroy local economic development, including hundreds of thousands of jobs and billions of dollars in local economic activity throughout California; and

WHEREAS, eliminating redevelopment will take away one of the few tools local governments have to comply with state requirements to plan for more compact urban development supported by transit-oriented development, housing, jobs and infrastructure; and

WHEREAS, eliminating redevelopment will destroy the development of affordable housing in California. Redevelopment agencies are the second largest funder of affordable housing, behind only the federal government, responsible for over 98,000 units of affordable housing since 1993; and

WHEREAS, shutting down redevelopment agencies is a violation of multiple State and Federal constitutional provisions.

THEREFORE, BE IT RESOLVED that the City of Livingston formally opposes the Administration’s proposal to abolish redevelopment in California.

Page 1 of 2

Passed and adopted this 1St day of February 2011, by the following vote:

AYES:

NOES:

ABSENT:
ABSTAIN:

Rodrigo Espinoza, Mayor
of the City of Livingston

ATTEST:

1, hereby certify that the foregoing resolution was regularly introduced, passed and adopted at a regular meeting of the City Council of the City of Livingston this 1st day of February 2011.

Antonio Silva, City Clerk of the City of Livingston

One thought on “Staff Report/Resolution Opposing the Admin’s Proposal to Abolish Redevelopment Agencies in California.

  1. Pingback: A Blood Drive, A City Council Agenda, and A Couple More Repeals/Re-does « Thegardeningsnail's Weblog (because not every critter is hiding under a rock…)

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