Now that the California state budget is mostly out of the way, it's time to see what – if anything – the state will do this year to plug the redevelopment gap.
And as redevelopment bills move forward, it's pretty much shaping up like this: The legislature is likely to pass something. The question is whether Gov. Jerry Brown will sign anything.
One of the many key features of 1978's Proposition 13 was the rolling back of the taxes, and limiting annual increases. A change in ownership was treated as a triggering event for purposes of establishing property valuation, and in turn, the recalculated property tax liability. Duea v. County of San Diego clarifies as aspect of how, and when, tax liability may be recalculated.
While most of California's cities undergo the arduous wind-down of their redevelopment agencies, a handful of cities have been going about business as usual. For most of the cities that never had redevelopment agencies, business has been, and probably will continue to be, good. Redevelopment took root in economically disadvantaged places, so the likes of Beverly Hills, Rolling Hills Estates, and Sausalito are carrying on contentedly.
Update: Yesterday, Sacramento Superior Court Judge Timothy M. Frawley ruled against a group of cities seeking a temporary restraining order that would have effectively set aside funds for former redevelopment obligations that are still under review by the Department of Finance. Though the loss is considered a blow to cities that are trying to cover bonds and pay for former redevelopment projects, it is expected to be only the first of many such lawsuits.
Against all odds, redevelopment isn't quite history yet in California. Some projects continue. Most cities are engaged in a long wind-down process that is consuming considerable time and attention. And the state legislature is considering a variety of options to revive redevelopment, or at least get it back on life support.
Over the past month, California cities have been learning the fate of countless redevelopment projects—touching everything from graffiti-removal programs to nine-figure transit-oriented developments to billion-dollar stadiums. For many, the news is not good – especially now that the California Department of Finance has gotten into the act.
With the American Planning Association National Conference arriving in Los Angeles tomorrow, it's likely that more planners than usual will not just be attending lectures and idly networking but rather will be actively, and sometimes desperately, trying to remain in the profession.
Perhaps more quickly than anyone would have thought, the California Legislature is already considering a collection of bills designed to both smooth the process of dissolving redevelopment agencies and to introduce new tools that cities can use in redevelopment's absence.
SAN DIEGO -- Seeking to make up for lost redevelopment funds, the City of San Diego has decided to require downtown developers to pay processing fees for the first time in decades. But it remains to be seen who will process the permits and get the money – the city's planning department or the city's nonprofit downtown redevelopment entity, the Centre City Development Corp.
California Senate leader Darrell Steinberg has predicted that the Legislature will pass his post-redevelopment legislation – assuming the state revenues remain healthy.