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Only 17 out of 400 Redevelopment Agencies have Completed Closure.

By   /   February 14, 2013  /   6 Comments

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July 1st starts the fiscal year for many city governments but sleeves are rolled up and numbers are being crunched in an early start to reconcile their budgets without the Redevelopment Agency slush funds that were shut down over a year ago.

CaliforniaCityNews.org reports in their recent update,“Cities Continue to Struggle in Shutting Down Redevelopment.” 

“Just over a year after the state shut down local redevelopment agencies, cities are still struggling to figure out how to cope with the loss. Earlier this week, state lawmakers held a meeting to hear from cities and counties about how the shutting down of redevelopment agencies is going for them. 

“We’ve got at least four projects that were in the pipeline when redevelopment was eliminated,” Mayor Michael Weissman of Culver City said. “We are here to let the committee know that the process currently in place will not enable those projects to move forward.”

Weissman wasn’t alone in his sentiments. Cities and counties across the state have been unable to figure out how to deal with debts and projects they already planned to pay for using redevelopment funds, much less how to go forward and continue with projects typically funded by redevelopment money. In fact, only 17 out of 400 redevelopment agencies have completed closure. 

The League of California Cities has noted that closing redevelopment agencies has halted critical projects across the state. Executive Director Chris McKenzie said creating new affordable housing programs in particular has essentially stopped, and city budgets have been affected dramatically. 

There are few hopeful options for cities right now. McKenzie said he is now focusing on trying to attract private sector money to cities and counties to revitalize urban areas. Assembly Member Bob Blumenfield co-authored a bill last year making it easier for local governments to issue bonds, but Governor Jerry Brown vetoed the bill. He’s likely waiting to see how much the state will be able to recapture from redevelopment funds before promising funding to local governments again.”

Read more here.

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About the author

Margo Sturges

Yucca Valley Editor

Note: Margo Sturges has written many articles for Cactus Thorns and is the founder of Citizens4Change.info. Email contact: MargoSturgesYV(at)aol.com "In a time of universal deceit, telling the truth becomes a revolutionary act."- George Orwell

6 Comments

  1. This article discusses the problems after redevelopment was shut down. One problem Twentynine Palms will have that other cities do not have is a one-city fire-truck. Insurance companies believe their investment is not protected when the fire truck will be delayed because it is way out in Indian Cove (or vise-versa)and there will be a delayed response.

    This goes for any investment or any growth for growth in the city. But it is not city business (sat four councilmen). It’s the business of the water department, and they cannot by law fund the fire department.

  2. This article discusses the problems after redevelopment was shut down. One problem Twentynine Palms will have that other cities do not have is a one-city fire-truck. Insurance companies believe their investment is not protected when the fire truck will be delayed because it is way out in Indian Cove (or vise-versa)and there will be a delayed response.

    This goes for any investment or any growth for growth in the city. But it is not city business (four councilmen say). It’s the business of the water department, and the water department cannot by law fund the fire department.

    This is no catch-22 since four men on the city council say no to public safety.

  3. Dan OBrien Dan OBrien says:

    Can you get a list of the 17 RDAs that have closed up? That would have made this story a Gem.

    We need to know who the heroes are in this tale.

  4. Under the leadership of city manager and Rutan & Tucker, 29 will continue to ignore the legislative and court mandate orders to dissolve its redevelopment efforts.

    City manager doesn’t want to move forward to another job wearing a jacket broadcasting he left a town in debt for $31 million with nothing to show for it.

    A. Patrick Munoz clearly will not dissolve redevelopment efforts — he’s made this very, very, clear — while he continues his snow job on the council, Successor Agency and Oversight Board, as long as there is an avenue open and a city council easily manipulated and he and his firm continue to bring in huge profits in legal fees.

    To date, his firm is owed $200,000. That’s the bill on the current Staff Report.

    The California League of Cities and the rest of the outside professional entities are driving the train wreck. Both Warne and Munoz are members of professional outside entities that deal with redevelopment.

    City manager’s Form 700 is completely blank but for his disclosure of a part-time board of director in a corporation that deals in bonds.

    Every thing said above has been documented in Cactus Thorns many times over and not once has it ever been challenged.

    It will take a couple of new faces on the city council to stand up to city manager and Rutan & Tucker.

    Thanks Carey for the Link.

  5. LINDAG LINDAG says:

    Don’t forget RSG and other overpaid consultants who are still making money off from our cities. They will hold on with tooth and nail to keep our bank account open to them…encouraging continued lawsuits along with the overpaid outside law firms with their hands in the taxpayers pockets.

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