:: Urban Futures Inc :: Redevelopment & Implementation :: Citizens Guide to Redevelopment

Redevelopment, under the California Community Redevelopment Law (CCRL), is a way in which California Cities can retain funds to help reverse the deteriorating and/or inadequate conditions of its streets, public facilities, housing, and infrastructure. Communities with limited financial resources can use redevelopment as an effective tool to initiate public capital improvement projects, property rehabilitation, and private development and investment that could not be accomplished by other public or private means.

Redevelopment is one of California's most effective economic development tools used to breathe new life into areas which are negatively impacted by a number of physical, environmental, and economic conditions that inhibit new investment by private enterprise.

In most instances a Redevelopment Agency is composed of City Council members elected by local citizens. However, an Agency is a separate public body, corporate and politic, from the City in which it operates. An Agency is activated by the CCRL’s enabling legislation.

In most cities, it is the City Council that designates a survey area for study. The City's Planning Commission then selects one or more "project areas" from the survey area and indicates how the purpose of the CCRL will be attained by redevelopment of the area. A survey area is an area which is evaluated to determine the existence of deteriorating and/or inadequate conditions, as defined in the CCRL, and general feasibility of redevelopment. A project area is the designated area where most redevelopment activities will be undertaken.

A redevelopment plan is written in legal terms and prescribes the Agency's redevelopment authority, and generally describes the Agency's purposes, objectives, and projects and programs which will be employed to help eliminate existing deteriorating, and/or inadequate physical and economic conditions from within a project area. The redevelopment plan, or as the case may be, an amendment to the plan, is adopted by Ordinance of the City Council based on the recommendations of the Agency and the Planning Commission. Citizen input from public workshops, City Council and Agency meetings, and public hearings is also considered before plan adoption.

Yes! A continuing dialogue with the public is crucial to a successful redevelopment program. The redevelopment plan prepared for a project area is presented at a public workshop(s) and a public hearing where citizens are given an opportunity to review and comment on the plan. All Agency meetings are open to the public and public attendance and participation are encouraged. All decisions are made in a public forum.

As examples, property owners, residents, and businesses could benefit from long-term redevelopment activities as follows:

	Community facilities can be improved,
	New construction can be facilitated by the Agency,
	Traffic/circulation and parking deficiencies can be improved,
	Property values should increase,
	Loans to improve property may be readily available,
	More recreational opportunities can be created,
	Additional affordable housing opportunities will be made available, and
	Business retention and expansion programs can be developed.

The redevelopment process provides for a change in the distribution of property tax revenues collected on property within a redevelopment project area. The Agency will retain a portion of the tax dollars paid as a result of the increase in property values caused by improvements, reassessments, inflation or property sales. Under current law, existing taxing agencies will continue to receive all the property taxes they currently collect, plus a percentage of any increase.

No! In accordance with Article XIII of the State of California Constitution, taxes will only increase if there is a change in ownership or if there is new construction on the property. The higher taxes resulting from the sale of property will reflect a rise in property values, not an increase in tax rates. Over the long-term an improved community image and an improved economic base will increase the marketability of property in the area.

No! A Redevelopment Agency does not have the power to levy taxes. As noted above, the only tax increase is caused by property improvements or sales. Your individual property taxes or the tax rates will not be affected! A Redevelopment Agency does not set tax rates. Tax rates of taxing agencies such as school districts, Counties, Cities, and other special districts can only be raised by a vote of the people.

Agencies generally use their resources to develop projects and programs which will facilitate long-term economic development, improvements to infrastructure, production and preservation of affordable housing, and construction of needed community facilities. High priorities also include the creation of jobs, and promotion of business retention and business development programs. By law, Agencies must use their resources to help eliminate blighting conditions, as defined in the CCRL. The money may not be used for general-purpose government.

No! Rents should not be affected because property taxes will not increase due to redevelopment. In fact, rents could conceivably be lowered as a result of redevelopment programs designed to increase, improve and preserve the Community’s supply of affordable housing.

Redevelopment can eliminate deteriorating conditions and facilitate construction of needed public improvements and the other projects and programs without additional cost to the property owner. This not only permits a better living environment, but in some cases allows a property owner to fully use and develop property that is currently undevelopable because of existing conditions.

When redevelopment activities are successful, the property values within, as well as around the redevelopment project area, will increase.

The effective life of a new redevelopment plan is 30 years from the date of its adoption by the City Council. Other time and fiscal limits are also mandated by the CCRL.