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Redevelopment Agency warns state bills could curtail local projects or force buybacks
Summary
The Redevelopment Agency reported potential statewide legislation to eliminate or restrict redevelopment agencies; the agency said some project areas would be in jeopardy and that they may pay to stay in business if buyback legislation passes.
Fred Blackwell, executive director of the Redevelopment Agency, told the Budget and Finance Committee the agency submitted a $286.6 million budget and is closely watching two state-level trailer bills that would eliminate redevelopment agencies or require agencies to contribute to schools to continue operating.
Blackwell said the state's proposal could require agencies statewide to send about $1.7 billion to the state in a coming fiscal year, with recurring annual amounts thereafter. "Our position so far has been that we oppose any bill that has to do with the elimination of redevelopment," Blackwell said, but he added that the agency may be prepared to "pay to stay in business" if the 'buy-back' option becomes law.
Supervisors asked which local project areas would be most affected; Blackwell pointed to Mid-Market and Visitation Valley as particularly vulnerable and said affordable housing and some Phase 2 projects may face financing risk if legislation restricts increments or the ability to enter new contracts.
Budget analyst recommendations include approving the agency's request to issue up to $84 million in bonds to finance redevelopment activity and a set of modest reductions to the agency's proposed budget. Blackwell said he concurs with most of the budget analyst's line-item suggestions but asked to reconcile a few differences before the committee's next hearing.
