Redevelopment will lose is role in making San Diego more economically prosperous and beautiful in areas that have grown blighted over time on Febuary 1. The valuable property taxes and properties will get handed over to the successor agency that takes over the work done by the Redevelopment Agency, the SEDC and CCDC, the City of San Diego.
The city is also the successor agency for housing.
At its Monday meeting on January 23rd, the city council began discussions on managing the losses in tax profits used to develop communities.
The final blow that doomed the agencies to their early 2012 fate came on Friday the 27th when Sacramento Superior Court Judge Lloyd G. Connelly rejected two lawsuits filed by municipalities, including the City of Cerritos, and redevelopment agencies in California. The argument that the Proposition 25 change to a majority vote for budget bills does not change the need for two thirds majority for a vote on a trailer bill did not win. AB x 26 and AB x 27, the two bills that put an end to redevelopment, were added to the main budget deal.
No injunction will stop the agencies from having to undergo a last stand starting Wednesday.
Seven members on an oversight board that AB 26 signed by Governor Brown last June makes mandatory will direct the city to sell assets and properties and oversee the winding down of the agencies. The city will collect loans and rents owed on redevelopment projects.
Patiently, community development and housing officials will have to watch the changes ring through after stopping their redevelopment work that put much of the cash down needed for expansion and growth in the city before reaching the prize. The absence of broken windows and dead lots.
Now that redevelopment projects are nobody's long term business, the money from property tax increments and asset sales will get sent to the county auditor-asessor for distribution to local agencies and schools after all the continuing costs of redevelopment work have been paid. Contracted costs will get paid and the costs of administrating redevelopment funded.
Money left in the Low and Moderate Income Housing Fund will get taken by the city and sent to the county auditor-assessor before being sent to local agencies to restore funding that Governor Brown planned to restore.
Payments will be distributed twice a year at the middle and beginning of the year after a first distribution on May 16th.
The oversight board has until July 1, 2016 to make sure the unfunded development commitments now in the red are fully remedied with a total cancellation. Then, the board will cease to exist.
This is a Front Story Clip.
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