City staff to study Climate Resilience District feasibility for Palisades; committee authorizes next steps

The Economic and Workforce Development Department (EWDD) briefed the committee on Climate Resilience Districts (CRDs) as a financing tool for climate-related recovery and adaptation, and committee members authorized city staff to pursue an initial in-house assessment and, if warranted, a consultant-led feasibility study.

EWDD staff explained that CRDs are a type of enhanced infrastructure financing district that can use tax-increment financing (TIF) to fund resilience projects such as flood control, wildfire mitigation and other climate adaptation measures. EWDD emphasized that, unlike ordinary special districts, CRDs may — under state law — levy special taxes or assessments only if approved by voters, and that they can also pursue state, federal and private funding sources. The department said formation typically takes 18–36 months and requires at least two years of tax increment accumulation before significant bonding, which makes CRDs ill-suited for immediate recovery cash needs; however, EWDD noted that formation and pre-formation expenses can be reimbursed by a later CRD.

A pending state bill (draft SB 782) would create a “disaster recovery CRD” subcategory tailored to disaster-affected areas and expand allowable uses to include acquisition, demolition and restoration of damaged private structures; EWDD said the draft bill could shorten formation timelines and explicitly allow investment in private-property recovery if enacted.

EWDD reported that a feasibility study for a CRD typically costs about $250,000 (roughly $150,000 for analysis and $100,000 for outreach), and implementation costs vary. The department recommended a two-step process: a preliminary internal assessment under the city’s EIFD policy to test alignment with city strategies and basic financial feasibility, followed — if staff recommends it — a funded consultant feasibility study. EWDD said staff could return with an internal assessment in about 30 days and requested authorization to evaluate multi‑jurisdictional options, including collaboration with Los Angeles County and the City of Malibu.

The committee voted to adopt EWDD’s recommendations and asked staff to include Malibu and affected unincorporated county areas in the preliminary assessment.

Ending: EWDD will return in 30 days with an internal assessment of whether forming a CRD for the Palisades appears in the city’s fiscal and economic interest; councilmembers flagged potential use of any future tax increment to help repay city advances such as fee-waiver loans.