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All redevelopment agencies in CA officially abolished.
What a surprise Christmas gift from our Supreme Court, especially when they voted unanimously (7-0) to uphold AB X 1- 26 which disbands our state’s redevelopment agencies and 6-1 to throw out AB X 1-27 which violates Prop 22 (Article XIII, section 25.5 subdivision (a)(7)(A). Chief Justice Tani Cantil Sakauye partial dissent represented the sole Justice voting to retain that companion Bill.
Having actively devoted over 15 years in the fight to shut down our state’s redevelopment agencies I was extremely pleased with today’s nearly unanimous slam dunks rulings by the court.
While those of us who have fought these agencies across the country celebrates today, the CA League of Cities and the RDA are not giving up their highly compensated efforts to continue providing corporate welfare for special interest projects such as future NFL stadiums in SD and LA to auto dealerships and big box stores as these agencies divert billions of tax dollars every year from public education and public safety.
Earlier today I received a Press Release from Tony Cardenas on behalf of the California Redevelopment Association and League of California Cities in which he “Urge(s) Immediate Legislative Action to Revive Redevelopment.” Agencies.
As it turns out the Legislators who support redevelopment agencies screwed up and outsmarted themselves. i.e. “Senate President Pro Tem Darrell Steinberg, Assembly Speaker John Perez, along with many other lawmakers, made it clear that the legislative vote was intended only to extract revenues from redevelopment agencies, not to abolish them altogether.”
Didn’t they bother to read and comprehend the implications of what they were signing?
The redevelopment agencies must shut down by Feb 1, 2012 at which point “successor agencies” will be responsible for paying off the RDAs current bonded indebtedness with future tax increment funds. They cannot commence any new RDA projects.
Let’s face it. Redevelopment agencies in our state have been one huge money pit.
While I anticipate new legislation to resurrect this tool under a new name the Legislature will need to overcome the governor’s veto as he desperately needs this money to meet part of his budget shortfall.
I anticipate some heavy lobbying by those representing these 400 plus agencies immediately after New Year.
Think about it. This ruling has taken top billing over the non-stop coverage of the GOP Caucus in Iowa.
It has taken us decades to educate and inform the public on these abusive agencies.
Wishing everyone a safe, healthy and prosperous New Year.
Email from Bob Blue, whose Bernard Luggage business we collectivley fought and defeated CRA/LA at Hollywood & Vine Streets.
Hello Larry,
I agree with the analysis that is “show me the money.” That is driving force behind Governor Brown and many Democrats originally willing to shut down Redevelopment agencies at the first half of 2011 without a compromise.
So how will they fund it? – There is no free lunch and you can’t pull the funds out of thin air while the State faces on-going and ever growing budget deficits.
One concern that I have is that the “pro-redevelopment” side seems to be getting the press without readers hearing the other, negative side of redevelopment.
I hope elected officials and organizations who know better can get opinion pieces out their to remind all Californians and the Nation what State Controller John Chiang and State Treasurer Bill Lockyer and State Assemblyman Chris Norby, MORR, Cal Property Rights, Institute for Justice/Castle Coalition, etc all realize that the notion of “job creation BECAUSE of Redevelopment” is a false message – The numbers don’t lie.
And that Redevelopment allowed borrowing without voter approval which lead to a large amount of debt that will take probably 10 years to pay off.
That cities and areas without Redevelopment project areas have seen as much as or better economic prosperity as those that have RDAs – But all California taxpayers are responsible for paying up and making up for the shortfall caused by RDAs as they siphon off property taxes.
And finally and most importantly, RDAs were the mechanism that allowed “Kelo-type” use of Eminent Domain to take private property from one private owner and give it to another.
Thank you,
Bob.
Earlier this year we created two You Tube videos which I titled Mission Viejo’s bogus redevelopment project. I sent copies of that DVD story to the governor and statewide elected officials pointing out that the Mission Viejo “crown jewel” area contains no economic or physical blight. Specifically Crown Valley Parkway that includes the $400 million expansion and upgrade of Mission Hospital, the Shops at MV to the luxury auto dealerships along Marguerite Parkway south to the Arroyo Trabuco golf course off Avery Parkway.
We are the poster child for redevelopment abuse. SD Senator Kehoe responded thanking me for letting her know and that “the court decision will shape what happens next.”
When the El Toro airport vs. Great Park debate was under way the City Manager of Irvine publicly stated in an appearance before the Board of Supervisors that the City would not use taxpayer dollars on the Great Park project and that included not forming a redevelopment agency. Of course once the voters bought the great park concept the City did not stick to those promises. Now with this Court decision it seems the City of Irvine may be forced to live up to at least one of those promises.
*Redevelop me once…..shame on you. Redevelop me twice….shame on me!
Congratulations Dr. Gilbert …a lot of work over many years sometimes pays off and we will be praying for your successful redemption……
Folks. One of our earlier issues in opposing RDAs was the fact that these local officials could create millions of dollars of bond debt in each city without voter approval.
We lobbied the Legislature only to fall short of the votes necessary to change RDA law.
To Larry Gilbert, The Honorable Chris Norby, CORE Members, our Honorable Gov. Jerry Brown,
A breath of fresh air is visiting me. When fighting for over twenty years the victories were growing and now reached this height. Tears fill my eyes and I can’t express the right words right now but I plan to give my real assessment of this situation soon as I wipe the tears from my eyes and my heart. With a broadcast degree as an announcer, and a paralegal degree, I am clearly speechless. I haven’t the words to explain how I feel. Other than elated, I am flying high at the thought of seeing the RDA’s all over this state seeing the truth come to them and them getting what they deserve. I need to spend some time wiping my eyes and finish this writing at a later time. I just wrote many lines only to see them disappear for no reason! Where did they go? I want to make sure that my words are clear and percise and captured not lost. My tears are tears of happiness. But this battle won’t end here. For killing the RDA is kin to baptizing a billy goat. When you get his head under water his feet pop up. Watch out for this as I have seen it before. Until later I’m Ralph S. Cato
Inside baseball. I met Ralph Cato when appearing for Tom McClintock at an Assembly hearing on abusive RDAs. Since that Jan 1998 hearing Tom and I always share Ralph’s “eminent domain” story when discussing the need to shut down these abusive agencies.
The city of Fresno took his family home for a turkey processing plant when he did not wish to sell. He testified that he was compensated 10 cents on the dollar of comparable properties in the area.
Epilogue. The acquiring firm folded within one year. Does this sound familiar?
Think about Pfizer Pharmaceutics in New London CT.
Susette Kelo and her neighbors properties all had the same result. Pfizer bailed leaving a dust bowl where non-blighted homes once existed.
There are numerous examples of RDA disasters that Huell Howser will not cover in his programs.
The CA supreme court decision was was indeed wonderful and unexpected good news!
I own an environmental consulting company which I started 20 years ago, and we do quite a bit of work for state and local governments. The redevelopment agencies have generally been the most difficult to work with. In one city several years ago, they allowed their “pet” consultant to bid the lowest amount by omitting work the other biders understood was to be included. More recently, a city redevelopment agency kept awarding projects to a competitor known for producing half-baked reports not in compliance with the laws and regulations, and would not turn over any of those reports for review, even though they are public documents.
As a child, my family was a victim of eminent domain abuse, a related issue. Right after my father died, the St. Louis County Highway Department demanded all of the five acres on which we lived, even though they only needed two for a road project. They paid just $62,000 for the entire five acres, even though my mother had listed the three acres they did not need with a real estate agent and had received a first offer of $120,000. They also threatened to pay even less if she fought them. Even worse, to this day the land sits vacant, except for a tiny patch of land on which they placed a fuel tank and pump.