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What’s Next for Redevelopment Dissolution

16 Jan

The dissolution of the state’s redevelopment agencies began in earnest around this time last year. Since then, the process of winding down the activities of some 400 former local agencies has been anything but smooth. In spite of lawsuits, temporary restraining orders, and demands for payment, the long march of the post-redevelopment era continues. Here’s what to look for as we enter year two of redevelopment’s dissolution. Continue reading

Governor Brown Puts a Hold on Redevelopment Redo

17 Oct

The Governor has put the brakes on the Legislature’s attempts to develop new economic development tools in the wake of redevelopment’s dissolution. Continue reading

Redevelopment Redo

17 Sep

The State Legislature recently passed SB 1156, “a bill that would allow cities and counties to create Sustainable Communities Investment Authorities.” The bill now awaits the Governor’s signature at the end of the month. As we’ve noted, SB 1156 attempts to resuscitate elements of redevelopment after all of the state’s redevelopment agencies were shuttered last year. Hopes are high that Governor Brown will sign the new legislation. But is he likely to sign off on this redevelopment redo? Continue reading

Bond Insurer Sues to Undo Redevelopment Dissolution

21 Aug

Wall Street has weighed in on the dissolution of California’s former redevelopment agencies. Earlier this month, bond insurer Syncora Guarantee sued the state, claiming that the shuttering of 400-odd redevelopment agencies unfairly deprives bondholders of the money that they are owed. The insurer claims that the law violates both the California and U.S. constitutions, which each contain provisions that prohibit states from imposing laws that impair contractual rights. Continue reading

Marching to a Post-Redevelopment Era

16 Jul

The shuttering of the state’s redevelopment agencies continues to unfold with the passage of Assembly Bill 1484 (AB 1484). The bill clarifies some procedural elements of redevelopment (RDA) dissolution, adds new regulations, and all-but-guarantees a showdown between local governments and the state as both grapple to allocate scarce tax resources.

The bill also, surprisingly, hints at one development strategy that the Legislature may adopt as we continue our march to a post-redevelopment era. Continue reading

Simpler, More User Friendly Infrastructure Finance

17 Jun

We all know how important infrastructure investment is to job creation. The concept is straightforward: the more money we invest in infrastructure, the more jobs we create. Though  simple in concept, getting the resources necessary to invest in infrastructure is no easy feat. And with the dissolution of redevelopment agencies across the state, finding gap funding to finance infrastructure has become increasingly difficult.

Unfortunately, limitations on funding for infrastructure have come at a time when infrastructure investments are ideal because interest rates are low, and laborers are many. Given this reality, Californians are looking for new ways to direct resources toward infrastructure development and improvements. Continue reading

May Revision and the Redevelopment Dissolution Clean-Up

22 May

On May 14th Governor Brown released the revised state budget for 2012-13. You probably already know that the state’s predicted deficit has ballooned to $15.7 billion (up from the $9.2 billion estimate in the January budget). And you’ve also probably heard that the budget is relying on an estimated $818 million dollars in property tax revenues as a result of the shuttering of the state’s redevelopment agencies.

What’s new with this revision is that the Governor is proposing to sweep all redevelopment housing monies (i.e., funds in addition to the $818 million referenced above) to help address the budget shortfall. Continue reading

RDA Clean-Up Bill Advances

19 Mar

Many communities and public officials have been struggling for the last few months to sift through the upheaval caused by the dissolution of California’s 400 redevelopment agencies (“RDAs”). Continue reading