Stockton's Redevelopment Failure Gives Fullerton a Dismal Outlook

A Bloomberg Businessweek article on Stockton (CA) Redevelopment's possible default should have many of Fullerton's Redevelopment Agency supporters biting their nails. 

Stockton declared a fiscal emergency in May and is now warning that the RDA may default on a 2006 bond obligation with the debt service outpacing revenue to the tune of $858,000. 

Fullerton has several outstanding redevelopment bond obligations.  In July 2010 the Fullerton RDA announced spending $22.7-million for low-income housing and then in October 2010 the RDA passed a $29-million bond which is expected to cost taxpayers $45.5-million of the following 16 years.

Putting these figures in perspective, the Fullerton RDA receives about $17-million per year to cover all of the agency's debts and project development.

And we cannot forget yet another expense incurred by Fullerton's RDA, something I call the "Brown Taxes" after our own Governor Brown.  Sacramento's ABX1-26 & 27 is aimed at recovering tax revenue from redevelopment agencies, Fullerton's RDA paid out $6.26-million in Brown Taxes.

This is the same redevelopment agency which planned to spend $6-million to move a McDonald's 200 feet! 

With several bond obligations, Brown Taxes, slumping property tax increment revenue, poor direction, and pending litigation, the Fullerton Redevelopment Agency would be doing us all a favor if they just closed their doors for good.