My co-blogger, Larry Gilbert, recently wrote about the possibility that the Brea City Council might raise their local sales tax in order to cover a looming budget shortfall. However Gilbert’s post focused on redevelopment. It did not touch on the reasons that the Brea City Council is in this fix.
Thus I was not surprised when Brea Councilman Ron Garcia emailed me and asked if I could meet for coffee. We did meet, at a very nice Starbucks location at the Union Plaza, in Brea, which sadly is going to be closed down soon. The imminent closure of this Starbucks is indicative of the real problem in Brea.
It turns out that sales tax revenue is down 8% in Brea. And, as Gilbert mentioned in his post, the City of Brea does not benefit from the property taxes generated by its awesome revitalized downtown. However, as I understand it, sales taxes generated in the downtown area do go to the state and a percentage of those sales taxes do come back to Brea.
Brea, unlike the city I live in, Santa Ana, is a well-run city. It has a reserve. The Brea City Council does not engage in deficit spending. They are facing a shortfall in their budget and rather than dip into their reserves they are considering placing a measure on the November ballot that will ask the voters in Brea to approve a quarter percent increase in their local sales tax. This will amount to $25 on a $10,000 purchase.
You would think that the business community in Brea would be up in arms. But you would be wrong. The Brea Chamber of Commerce and the downtown business association is supporting the idea of raising the sales tax. So is the Brea Mall merchants’ association.
Why are all these folks supporting this idea? Well, it turns out that 80% of sales tax revenue in Brea comes from folks who don’t live in Brea but do shop there. And the people of Brea like the way their city is run. Garcia told me that a survey conducted in the city revealed that 96% of residents like living in Brea and like what Brea is all about. That’s not bad!
Garcia made it clear that he and his fellow Council Members are not proposing to raise taxes. They are merely pondering asking their fellow voters to decide the issue. If the voters say no, then the City Council will have no choice but to slash city services.
And those residents have made it clear in the past that they don’t want any cuts in services. They like having their own police department, which also provides police services to the neighboring city of Yorba Linda. They like having community services and they are thrilled at the pending multi-million dollar sports park that is going to be another redevelopment project.
Which brings me to the issue of redevelopment. The fact is, downtown Brea was about as bad as downtown Santa Ana a few years ago. The city decided to allow a development which was funded by a bond. The property taxes in that area now are spent paying back that bond. It will take many years to pay off that bond. However, in the meantime, as I noted, the city gets their share of the sales tax revenue. And the people of Brea have a great comedy club, a movie theater and lots of neat restaurants to hang out at.
Go to downtown Santa Ana at night and you will find a few bars and restaurants but no comedy club and no movie theater, and none of the great restaurants you will find in Brea. People want to hang out in downtown Brea now. Some people do that in Santa Ana too, but many just drive on through. And there is always the fear of crime in downtown Santa Ana. You just don’t feel safe most of the time. But you are definitely safe in Brea.
So is redevelopment all that bad? Beats me. But clearly the downtown area of Brea is a home run. And their new sports park also figures to be a great place for locals to enjoy themselves. Neither of these projects would have come to fruition without redevelopment deals. Ask the people of Brea how they feel about these projects and 96% will tell you they love the city they live in. That matters, doesn’t it?
Why do I get the feeling that if Ron Garcia had exactly the opposite opinion from that expressed above, that Art would also hold that very same opinion?
If Ron and his two cohorts aren’t supporting a tax hike and “only” want to give the residents they’re supposed to be representing a chance to voice their opinion, then why not also place a sales tax CUT on the ballot?
What would be the harm if they aren’t really advocating for a tax hike?
Matt/Jubal,
I suppose if the people of Brea were pleading for a tax cut that might be on the table, but the survey Ron mentioned indicated that 96% of the residents in Brea think their city is terrific. You can extrapolate that to mean that they don’t want less services. They want things to stay as they are.
I don’t see any harm in letting the people vote on this issue. Isn’t that what democracy is all about?
Redevelopement can be positive. However, it is important that existing property and business owners and residents are treated fairly and are part of the process.
Eminent domain and similar abusive tactics by government must not be tolerated.
From http://www.sgvtribune.com
Baldwin Park must extend eminent domain authority
By Tania Chatila, Staff Writer
Article Launched: 07/25/2008
“BALDWIN PARK – The City Council needs to pass a pair of amendments if it hopes to revitalize 125 acres of downtown real estate, officials said.”
“The amendments, written by city staff, would extend Baldwin Park’s eminent domain authority for another 12 years in both the Central Business District and the Sierra Vista redevelopment project areas. One amendment would also allow the city to extend its authority to residential property not previously included.”
“A proposal by the Bisno Development Co. seeking to redevelop 125 downtown acres includes property in portions of both zones.”
Are the use of eminent domain and similar abuses what the businesses and residents of Santa Ana want?
Do we want developers such as Bisno, who pay off city council members by contributing heavily to Measure D, to be part of developement in Santa Ana?
Mike,
I agree. According to Ron only one property owner in the downtown area held out – and he did so because he wanted more money. The rest of them sold their properties or bought into the development.
The Baldwin Park deal, on the other hand, is indeed a massive abuse of power. Those property owners do not want to sell – and the City of Baldwin Park doesn’t care.
I fear that something similar might happen in Santa Ana, considering how much money Bisno has forked over to Pulido and his cabal.
Sadly the voters defeated the last attempt to stop such abuse of eminent domain. The measure was flawed in that it included ending rent control, which was a non sequitur.
Art. While not wishing to break this thread I am tempted to draft a new story on redevelopment victims that are lost in the process. It will take a little investigating for factual accuracy.
With victims in mind please don’t overlook a name close to your keyboard. Bisno Development.
Also. With a focus on redevleopment I had a discussion with Huell Howser last Tue. Check out Steve Greenhut’s Commentary in today’s Register.
From my POV:
1) Ron Garcia is an a–hole. Any politician who has Rev. Lou Sheldon endorse him, and brags about it is not too bright. Or a homophobe.
2) Brea is not Santa Ana, far from it.
3) Brea has a huge non-resident workforce which contributes to the tax base.
4) Generally speaking; the populous is willing to pay a little more to fly below the radar. Sometimes to raise kids in a better place costs a little more.
.02 cents from an pro tax dem.
Art
You may have been played as a sucker here.
Do you suppose that a SA operative could have given a call to Garcia to have him smooze you into a less vocal stance against the Santa Ana Re-gentrification Plan?
#7,
No. The Santa Ana Renaissance Plan is an utter disaster. Say what you will about Brea but their planning department does a good job. You certainly cannot say that about Santa Ana’s planning department.
And don’t forget that Santa Ana head planner Karen Haluza is running for the Fullerton City Council. Be sure to tell your friends in Fullerton to vote for anyone else.