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California Lawmakers Mull Options for Replacing Redevelopment Agencies

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  • January 16, 2012
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With the prospect of finding a permanent solution to address the loss of California’s 400 redevelopment agencies uncertain, state lawmakers are proposing a temporary reprieve to give the agencies time to figure out how to continue existing development projects.

On Friday, legislators introduced a bipartisan measure extending the Feb. 1 deadline for dissolving the redevelopment agencies until April 15, reported the Los Angeles Times. The measure, however, does not include a long-term solution that would allow redevelopment agencies to continue operating under a different structure.

It is not clear whether the proposal will be supported by the legislature’s leaders or Gov. Jerry Brown (D).

The call to eliminate the state’s redevelopment agencies was included in the budget package approved last summer after the governor proposed the plan. The move was intended to help balance the state’s budget by reallocating funds raised via tax increment financing from redevelopment agencies to other public services such as public safety and education. Brown’s plan had been projected to shift about $1.7 billion to those other programs.

The California Supreme Court last month upheld the law abolishing the agencies.

Most, if not all, of the local redevelopment authorities striving to redevelop California’s 25 closed installations rely on the monies raised through tax increment financing to carry out the first steps needed to attract private investment — replacing outdated infrastructure, constructing roads, tearing down antiquated military buildings and cleaning up residual contamination.

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