[Editor’s Note: The latest report to City Hall from Culver City’s lobbyist in the state capitol who is keeping leaders abreast of budget-cutting efforts by Gov. Brown and others to abolish California’s 398 redevelopment agencies.]
Dateline Sacramento — Here is an update on a new bill in the state Legislature, SB 286, which is designed to preserve redevelopment, co-sponsored by California Redevelopment Assn. and the League of Cities.
Yesterday Sen. Rod Wright (D-Inglewood) amended SB 286 to insert provisions that are meant to be a compromise on the issue of redevelopment. The compromise language was crafted by Sen. Wright’s office in consultation with the CRA.
As you know, as part of the Gov. Brown’s January budget, he proposed to eliminate redevelopment agencies and redirect the property tax increment. The governor’s proposal called for $1.7 billion of redevelopment funds to be used to fund Medi-Cal and court services in fiscal year 2011-12. Beginning in fiscal year 2012-13, the funds would be distributed to school districts, counties, cities, and special districts pursuant to property tax distribution formulas. Gov. Brown’s proposal would require successor agencies to be established for the purpose of overseeing the retirement of a redevelopment agency’s debts.
SB 286 does not call for the elimination of redevelopment agencies. The bill looks to forge a compromise by enacting reforms to current redevelopment agencies that would ensure that redevelopment activities are focused on targeted activities in blighted areas.
Sen. Wright has indicated that his bill would ensure “redevelopment is being used responsibly to maximize job-creation, revitalize rundown communities, clean up contaminated properties, finance infrastructure improvements, and build affordable housing. It would also institute tough new reporting and accountability standards.”
Below are the major points of SB 286:
- Tightens the Definition of Blight:
- Requires redevelopment agencies to document specific, quantifiable evidence of blight findings;
- Redevelopment agencies would be prohibited from using funds for certain projects, including golf courses, race tracks and sports facilities. It should be noted that agency funds could be used for sports facilities if approved by voters at an election.
- Redevelopment would be prohibited on vacant tracts of land greater than 20 acres, with the exception of military base conversions.
- Limit Redevelopment Size:
- Cities cannot add additional land to redevelopment if there is more than 25 percent of city land area or 10 percent of county land area, already under redevelopment.
- Increase School Funding:
- Beginning in January, any new redevelopment area would be prohibited from collecting the school share of local property tax or tax increment.
- Beginning in January, any new redevelopment area would be prohibited from collecting the school share of local property tax or tax increment.
- Implement Performance-Based Standards:
- Redevelopment agencies would be required to adopt performance-based goals to ensure that at least 50 percent of non-housing set-aside expenditures address the following priorities
- Job creation;
- Transit-oriented development;
- Remediating contaminated property;
- Military base conversion;
- Basic infrastructure needs; or
- Affordable housing.
- Redevelopment agencies would be required to establish a community advisory board. The advisory board would review the redevelopment agency’s 5-year implementation plan and provide recommendations. Additionally, the advisory board would be required to approve the implementation plan every 10 years.
- Prohibits the Use of Funds for Non-Redevelopment Agency Expenses:
- Tax increment revenues cannot be used for non-redevelopment operating expenses, such as staff or elected official salaries.
- Annual Performance Audits by the State Auditor.
SB 286 is currently scheduled to be heard by the Senate Governance and Finance committee on Wednesday, May 4.
Below are more detailed outline of the provisions of SB 286, as well as the text of the recent amendments.
[img]1159|left|SB286 Outline||no_popup[/img]
[img]1158|left|SB286 Amendments||no_popup[/img]
