Sacramento Bee: Redevelopment rush also occurred in 1993

(from the Sacramento Bee by Kevin Yamamura)

January 20,2011

More than a dozen cities have fast-tracked redevelopment proposals ever since Gov. Jerry Brown released his plan to eliminate the local agencies that use property tax revenues to subsidize construction projects.

The redevelopment rush is not unprecedented.

A similar flurry of activity occurred in 1993 when the state enacted a stricter blight definition. As a 1994 Legislative Analyst's Office report detailed, cities moved quickly to expand their redevelopment areas in 1993, likely out of fear that such neighborhoods wouldn't qualify under the new blight definition in subsequent years.

The Analyst's Office found that local governments placed three times as much land in redevelopment zones in 1993 than they did in the previous year. In one case, the report found, "the City of San Diego approved a redevelopment plan for land near San Diego State University which does not appear to suffer from severe or intractable problems," contrary to the stricter blight definition.

With that in mind, the Analyst's Office suggested last week that lawmakers may want to think about imposing a temporary freeze on redevelopment expansion to allow debate to unfold. That hasn't happened so far, and some cities now appear to be easing off the pedal as they monitor the situation in Sacramento. Los Angeles, for instance, delayed action on $930 million in redevelopment projects on Tuesday, while San Jose also backed off Wednesday.

Brown said Wednesday he remained open to the idea of a freeze, but he has not committed one way or the other.

As we noted earlier, there appears to be little consensus in the Capitol on whether to freeze redevelopment activity, let alone eliminate the agencies. The debate is one of the few that does not split along party lines, and many lawmakers have come straight from city councils where they benefited from redevelopment dollars.

Assembly Republicans debated the issue this week and came to no unified conclusion, said Assemblyman Chris Norby, R-Fullerton, a former city councilman and mayor. Norby strongly opposes redevelopment agencies, calling them subsidies for retailers. But other members of his caucus, including Assemblyman Cameron Smyth, R-Santa Clarita and chairman of the Assembly Local Government Committee, support redevelopment agencies.

A further complication to a redevelopment freeze is that some cities might be rewarded for sending money out the door over the last week. One idea floating around the Capitol would retroactively impede redevelopment actions dating back to Jan. 10, but that could invite legal questions.

Brown told city officials Wednesday, "You may win on redevelopment, and then we take something else." Some legislative aides have speculated that the showdown may end in a compromise with the state taking $1.7 billion in one-time dollars without permanently eliminating redevelopment agencies.

That's the kind of deal that Capitol leaders have struck in recent years, but Brown has signaled he doesn't want to follow the same path his predecessors did. We'll see.


Read more: http://blogs.sacbee.com/capitolalertlatest/2011/01/redevelopment-rush-also-occurr.html#ixzz1Bbt0kAOT

California Assemblyman Chris Norby to speak at Fullerton CRA

This Thursday, Assemblyman Chris Norby will be speaking at the Fullerton Unit of the California Republican Assembly (CRA).  Norby represents several cities in North Orange County's 72nd Assembly District, including his home town of Fullerton. 

The CRA is encouraging all conservative constituents to attend this meeting.

Assemblyman Norby will be presenting "Sacramento: Looking into the great abyss". 

Date

Thursday, January 20^th

Time

Dinner 6:15 pm – 7 pm (on your own)

Meeting 7:00 pm -8:30 pm

Place

Sizzler Restaurant

1401 North Harbor Bl.(Brea Bl.)

Fullerton California 92835

Questions: Please call Zonya Townsend 714 525-9441

Assemblyman Norby's Christmas Open House 12/16

www.asm.ca.gov/Norby
Assemblymember.Norby@assembly.ca.gov

Christmas Open House

WHAT:
Christmas Open House

WHEN:
Thursday, December 16th
4pm - 7pm

WHERE: 

Assemblyman Norby's District Office
210 W. Birch St., Suite 202 Brea, CA 92821

The office is located on the second floor of the building. Enter in through the side door next to the police office.

RSVP to the District Office: (714) 672-4734.

DISTRICT OFFICE 210 Birch St., Suite 202 Brea, CA 92821 714-672-4734, 714-672-4737 fax

CAPITOL OFFICE P.O. Box 942849 Sacramento, CA 94249 916-319-2072, 916-319-2172 fax

Flashreport: Assemblyman Chris Norby Says NO On Prop 22

"NO ON 22: REJECT THE REDEVELOPMENT POWER GRAB
Assemblyman Chris Norby


Proposition 22 is a power grab by California redevelopment agencies.It protects agencies from legislative and voter oversight, allowing them to spend more tax dollars, seize more land and sell more bonds. Redevelopment agencies now control 30% of all urbanized land and spend 12% of all property taxes, starving local agencies of needed revenues for essential services.

Norby Speaks on School Funding and Redevelopment Agencies

Judge: Local Schools Get Blight Funds
What is the best way to fight blight in our cities? Subsidize private development or public education? Spend public money on new shopping centers or new schools?

In his CRA vs. Genest ruling, Sacramento Superior Court Judge Lloyd Connelly decided for the kids. He upheld the legislature's authority over redevelopment agency money, an important step in achieving a balanced budget and returning those funds to their original purpose.

This ruling restores $2.7 billion in education revenues previously lost to redevelopment agencies, including $166.9 million for Orange County schools.

Redevelopment was created 60 years ago to end urban blight in California. It was never intended to be a permanent drain on the budget. Agencies are supposed to sunset after 40 years but are routinely extended indefinitely, and their indebtedness now tops $93 billion.

Redevelopment diverts an ever-growing share of property tax dollars into subsidizing big box retailers, auto malls, theaters, stadiums and low-income housing. Last year, redevelopment agencies diverted $5.4 billion in local taxes - 12% of all property taxes. That amounted to $2.7 billion taken from public schools and $646 million from counties. There is no money to backfill these losses.

Redevelopment agencies are typically operated by California's cities, who see it as a way to maximize local revenue. But most of that revenue winds up in the pockets of developers to stimulate private projects. None of it can be used for salaries or operations. Tax exemptions, rebates and land acquisition - often under threat of eminent domain - typically benefit developers and giant retailers.

L.A.'s Hollywood/Highland Mall got a $98 million public subsidy and has lost 60% of its original value. In Orange County, Costa Mesa's Triangle Square stands virtually empty after being built with redevelopment funds on land acquired through eminent domain, while Cypress used eminent domain to take church property for a Costco. From San Diego to Sacramento, public funds have been used to bankroll sports franchises and plans are on the books to hand out even more.

The state is littered with deserted shopping centers, half-empty malls, abandoned auto dealers and shuttered movie theaters that were originally financed through public redevelopment subsidies. This fiscal free-for-all distorts land use decisions and pits city-against-city to outbid each other for businesses - at public expense.

In the 1970's redevelopment the Anaheim Redevelopment Agency destroyed that city's entire downtown, leveling functioning businesses in historical buildings. Only a year after building its Fullerton location in 1984, the Price Club (now Costco) store threatened to move to Anaheim, unless it received more tax subsidies than the original deal provided. In the 1990's, Fullerton lost several auto dealerships to Buena Park, who lured them away to its new auto mall - at public expense.

Redevelopment has produced few benefits that private investors could not have done on their own. The Public Policy Institute's study "Subsidizing Redevelopment in California" compared 114 different redevelopment project areas statewide to similar areas without redevelopment. It concluded that redevelopment agencies were not responsible for any net economic growth and that they were being financed at the expense of local schools and public services.

A 2000 Los Angeles Times report compared differing neighborhoods in that city and found that redevelopment projects actually hindered development, as private owners waited for public assistance rather than investing on their own, and others - under threat of eminent domain - dared not invest at all.

Look at three commercial centers at the intersection of Orangethorpe and Harbor in Fullerton. The northeast and southwest corners received millions in public incentives, while the southeast corner was improved solely by private developers. There is little difference in vacancy rates.

Judge Connelly has a good grasp of state and local funding issues. He has served on the Sacramento City Council and the State Legislature. His ruling keeps these funds within the cities from which they came - to fund local schools. Funding education is a far more effective way to relieve blight than building more shopping centers.

Many city officials are understandably unhappy with the decision, as they find their redevelopment projects now in jeopardy. To the extent that these monies fund public improvements and infrastructure, they deserve protection. What cities really need is more general fund revenue that can be used for maintenance and public safety. I would support transferring remaining redevelopment monies into municipal general funds.

(Reprinted from Norby Notes 6; May, 2010, Issue 06; www.asm.ca.gov/Norby, Assemblymember.Norby@assembly.ca.gov)

Bill Hunt comes to Fullerton

Join Orange County Sheriff’s Candidate

Bill Hunt and special guest for an evening of wine and hor d’ oeuvres

Thursday, May 13, 2010

5:30 pm - 8:30pm

Held at The Bushala Residence

2020 Conejo Lane

Fullerton, CA 92833

Special Guest

California State Assemblyman Chris Norby

Suggesed Donation

$50 Per Person

$99 Per Couple

Casual Attire

With a little luck and maybe an email or two, we just might get a special visit from Hugh Nguyen and Shawn Nelson.

Assemblyman Chris Norby Invites You...

www.asm.ca.gov/Norby

Assemblymember.Norby@assembly.ca.gov

Town Hall Meetings


Dear Community Members,

Please join me for a town hall meeting. I am hosting a series of community meetings to discuss how legislation is affecting you, hear your thoughts and ideas, and answer any questions you have.

There are three upcoming dates:
Thursday April 22nd, 7-9 PM, Fullerton Senior Multi-Service Center, 340 W. Commonwealth Ave., Fullerton, CA 92832
Thursday April 29th, 7-9 PM, Whitten Community Center, 900 S. Melrose Ave., Placentia, CA 92870
Thursday May 6th, 7-9 PM, Downtown Community Center, 250 E. Center St., Anaheim, CA 92805


For more information, contact my district office in Brea at 714-672-4734.


Sincerely,
Assemblyman Chris Norby

Chris Norby Takes On Redevelopment In Sacramento - AB 1859

Redevelopment Accountability

This bill would require all new, expansions or extensions of redevelopment areas to be subject to review by county LAFCOs (Local Agency Formation Commissions). Currently, redevelopment agencies can be created and expanded without oversight, negatively impacting county revenue, with lawsuits as the only recourse. LAFCO oversight will better mediate revenue disputes between counties and cities resulting from redevelopment diversions and avoid costly litigation.

 

Check the status of AB 1859 by clicking here.

 

We sent him to Sacramento to do a dirty job and I am pleased to see he took our votes seriously. If Norby can get this bill passed and signed I will be very happy and impressed. Everything is an uphill battle in Sac City. The impression I get from reading newspapers and talking to folks is that no one wants to work very hard at anything and the town is full of legislators who have moved their families near the capitol. While that may be great for the legislators and their families, the constituents are the ones suffering. Chris's wife and children are all down here which I think helps him remain motivated and grounded in the 72nd Assembly District. If you don't live in the 72nd Assembly District, you should contact your legislator and tell them to support AB 1859. If passed, I think this bill will help your local tax dollars continue going into their currently allocated programs such as sewer, road, school purposes without diversion into buying property and flipping it to a private developer who will make money while all new taxes generated go into the redevelopment agency. Stop me if I'm wrong on this, but it sure seems like a good idea!

Norby Wins the Primary for the 72nd Assemby District

Congratulations to Chris Norby! Well done!!  Here are the stats: