New state law gives cities only a small fraction of assets once controlled by their redevelopment agencies 1

Leave a comment

Your email address will not be published. Required fields are marked *

One thought on “New state law gives cities only a small fraction of assets once controlled by their redevelopment agencies

  • Carol Churchill

    What is important for residents of Signal Hill to realize is that all of the “development” that was accomplished was with “borrowed money”.

    The hilltop development resulted from gifts of state funds to real estate developers to “guarantee profits” for the development of the hilltop homes.

    These homes do not produce “revenues” to the city. Signal Hill is a “low property tax city” because it elected to “keep sales tax”.

    The policy of the current city council was to spend the borrowed money to build non-income producing assets – houses.

    As far back as 1995, residents urged this city council to hold off on real estate development, and commit the redevelopment funds to cleaning up contaminated soil and building income producing developments, such as the retail sales tax generating businesses. But the council was enamored with the idea of houses on the hill and decided to put off “income producing” development.

    Redevelopment was created to provide the “STATE” with income by way of new property tax revenues generated from the improvement in real estate.

    The byproduct was “sales taxes” that were shared with the cities. Having committed its redevelopment money to “non-income producing” housing development resulted in a “pretty” city. But every “pretty cities” needs cash to support the infrastructure.

    Redevelopment funds are not a RIGHT. They were a sharing of State funds, and when the State, along with many other States, hit hard economic times, the sharing stopped and the State reclaimed its income so that it could dedicate it to public safety, schools, emergency rooms, aid for the aged and disabled, construction jobs along highways, fire fighting, etc.

    It does not good to point the fingers at the State. Every city believes it redevelopment is “special” and “necessary”.

    Just follow the law. The City should cut excessive legal fees (for one year that was $1.6 Million in Signal Hill), cut executive salaries and pensions (City Manager and Assistant City Manager make approximately a combined $500,000 annually), and do not build large municipal facilities that cannot be funded with current income. Share library facilities with local schools. Keep the police department adequately funded; do not build more low income housing that will require more police services. Stop financially subsidizing restaurants and trips for council members out of state. Tighten the belt until sales tax revenues recover.

    Sign the Taxpayers Right to Know and Vote so you will know when a new tax, fee or assessment is proposed BEFORE