LongBeachReport.com | LBReport.com | Council Votes 9-0 To Wall-Off Approx. $1 Bil In LB Redevelopment Funds From Feared Sac'to Budget Taking

(Jan. 19, 2011) -- In a series of 9-0 votes on items affecting over $1 billion in public money agendized with 24 hours public notice, the City Council approved five Redevelopment related items intended to encumber or contractually wall-off LB Redevelopment funds from possible taking by Sacramento to help balance the state's budget.

The Council actions came in a Jan. 18, 7 p.m. "special meeting" with agendizing notice conveyed a day earlier during MLK Day (when City Hall was closed). They follow a Jan. 10 budget proposal by newly elected Governor Jerry Brown to phase out Redevelopment statewide to conserve state tax dollars that could otherwise be used to fund schools.

No parent, teacher or education related interests spoke on any of the five Council items. Backup materials for the items weren't publicly available online until midday on the day of the vote.

The items, which also require approval by the RDA's governing board, were agendized for city management by Amy Bodek, Director of Development Services...who simultaneously serves as the Redevelopment Agency's Executive Director. Ms. Bodek indicates that the items will appear on the RDA board's Thursday (Jan. 20) agenda for action by that body.

Several Councilmembers commended city management for swiftly agendizing the items and spoke in support of the Redevelopment process in Long Beach.

Councilwoman Schipske's comments were more restrained, saying Redevelopment in LB deserves serious Council discussion, and said she would vote for the items because she opposes raids by Sacramento on local government monies.

In recent years, LB's Redevelopment Agency board has used RDA "blight fighting" money to fund infrastructure and capital projects that have drawn fire from critics who say such projects don't create jobs or tax increment or end blight (Redevelopment's stated purposes) while letting Councilmembers provide infrastructure and maintenance without budgeting city funds to pay for them.

Supporters say City Hall had an obligation to respond to Gov. Brown's Redevelopment phase out proposal by preserving local tax dollars for use locally. They add the loss to Sacramento of LB's Redevelopment funds would cut local infrastructure and maintenace projects in Redevelopment areas (which would then require city funds now used elsewhere) and they cite current and future projects that officials say are planned in Redevelopment areas (especially NLB) that would be jeopardized by losing the LB RDA funds.

LB City Hall isn't alone in seeking to prevent Sacramento from taking Redevelopment funds for state budget balancing (including schools); LATimes.com notes that a number of CA cities are doing likewise (coverage, click here.)

The items approved by the City Council were:

Amend agreement b/w RDA and City Hall re debt service @ CityPlace parking structures: $4,955,213 click here
Future Redevelopment Affordable Housing Set Aside: Approx. $138,500,000 click here.
Encumber current and future RDA tax increment through FY 2021 through 2021 "to support revitalization of neighborhoods throughout seven redevelopment project areas": approx $886,000,000: click here
Update repayment provisions re current loan agreements b/w RDA and City of LB for downtown, central and Poly High areas: approx. $10.3 million click here.
Implement agreement b/w RDA and City Hall to provide neighborhood code enforcement and graffiti abatement services for ten years: $16.9 million click here.