| Supreme Court Decision Could Cancel Local Shopping Center Projects |
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| Written by David Barron | |||
| Thu, December 29, 2011 03:49 PM | |||
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In Photo: Magnus-Sun Hill Project proposed for Garvey-Garfiel street location may be impacted by Supreme Court decision. http://www.facebook.com/Westvalleyjournal In its decision, the Supreme Court approved legislation that eliminated the redevelopment process, but voted against other legislation that would have permitted cities to “pay ransom" to keep their redevelopment programs going. The Supreme Court ruled that while it was OK for the state Legislature to eliminate the agencies, it was not OK to collect the ransom for other programs. Following the ruling by the California State Supreme Court upholding the elimination of redevelopment agencies, the California Redevelopment Association and League of California Cities vowed to work with state legislators immediately to develop legislation to revive redevelopment in order to protect local communities, job creation and the economy. In Monterey Park, several projects that are at risk including some in the early development or financing stages. This includes the Towne Center that was to be built at the southeast corner of Garvey and Garfield avenues and the Market Place, a major project planned on the south side of the city along Highway 60. In the past, several major projects including Atlantic Square, City Hall and Langley Senior Center, moderate-low income housing and the new Atlantic Times Square were developed with redevelopment agency support. Alhambra and Rosemead have also used redevelopment funds to bring in new business to their downtowns. Alhambra has used redevelopment funds extensively to bring in major retail stores and auto dealerships that have changed the look of the downtown area and made it into an entertainment and restaurant center. Since authorized in 1945 by the legislature, city and county redevelopment agencies help cities and counties create major improvements in blighted neighborhoods in partnerships with private developments. Redevelopment agencies were able to obtain property by eminent domain, purchase or lease and use a portion of the property taxes to pay for public improvements in the blighted areas. Several well-known projects such as the Los Angeles Bunker Hill Project and San Diego's Gas Lamp District,were developed through redevelopment funding. Many other city government agencies that provide services to redevelopment agencies will also face potential financial impacts. Some cities routinely payback their general funds from redevelopment treasuries for services that are provided by city departments. This includes administrative, engineering and even police and fire services. Some speculate that city managers may also have to take a pay cut because they are typically the head of the redevelopment agency along with other city functions. Municipalities, like the state of California, have been facing reduced revenues from sales taxes and property taxes in the last couple of years. In a statement released by Governor Jerry Brown’s office said the ruling will mean more revenue for state programs, and “guarantees more than a billion dollars of ongoing funding for schools and public safety.” (The Court’s opinion, which can be found on the Court’s website, http://www.courts.ca.gov/opinions-slip.htm. )
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