City of Culver City, California
Agenda Item Report
Meeting Date: _03/07/11_ Item Number: _J-1
JOINT CITY COUNCIL/REDEVELOPMENT AGENCY AGENDA ITEM: Adoption of a
Joint Resolution in Opposition to All Proposals to Abolish Redevelopment
Agencies.
Contact Person/Dept.: Shelly
Wolfberg/City Manager’s Office
Phone Number: (310) 253-6008
Fiscal Impact: Yes [] No [X] General Fund: Yes [] No [X]
Public Hearing: [] Action Item: [X] Attachments: [X]
Commission Action Required: Yes [] No [X] Date: _______________
Public Notification: Meetings and Agendas-City Council (03/03/11); Meetings and
Agendas - Redevelopment Agency (03/03/11); John Shirey, California Redevelopment
Association; and Jeff Kiernan, League of California Cities (02/23/11).
Department Approval:
Martin R. Cole (02/22/11)
Sol Blumenfeld (03/03/11)
City Attorney Approval:
Carol A. Schwab (by H. Baker) (02/22/11)
Agency General Counsel Approval:
Murray Kane (02/22/11)
Chief Financial Officer Approval:
Jeff Muir (by N. Kimball) (02/23/11)
City Manager/Executive Director Approval:
John M. Nachbar (02/23/11)
RECOMMENDATION:
Staff recommends the City Council and Redevelopment Agency Board (Agency
Board) adopt a joint resolution in opposition to all proposals to abolish
Redevelopment Agencies.
BACKGROUND:
Redevelopment works to improve existing properties and attract new development
throughout Culver City to help ensure their highest and best use and to establish a
balanced and prosperous community. Redevelopment efforts in Culver City have
been effective in stimulating private reinvestment into areas by eradicating blight,
increasing public safety and creating opportunities for business growth, jobs, and
affordable housing.
The Governor’s 2011/2012 budget proposal includes abolishing redevelopment
agencies in order to reallocate funds to the State’s General Fund. Over 400
redevelopment agencies in California would be impacted.
In Fiscal Year 2009/2010 the State of California took over $10.9 million of
redevelopment funds from the Culver City Redevelopment Agency and an additional
$2.25 million will be taken in Fiscal Year 2010/2011.
City of Culver City, California
Agenda Item Report
DISCUSSION:
The Culver City Redevelopment Agency (Agency) currently provides programs that
range from homeless services and new construction to rehabilitation of single and
multi-family homes and rental assistance. Through the 20% Housing Set Aside
Fund, the Agency has been able to assist 3,300 very low, low, and moderate income
households, so that residents may live affordably in decent, safe and sanitary
housing units. The Agency is also working on three housing developments that will
produce nearly 60 affordable new construction units over the next two years.
Without financial assistance from the Agency’s 20% Housing Set Aside Fund, these
projects could not be built.
The Agency has also provided financial assistance for numerous commercial, retail,
restaurant, infrastructure, and beautification projects, using tools available to
redevelopment agencies. For example, the renovation and expansion of Culver
City’s major mall, Westfield Culver City, resulted in a $180 million project that
created 350 construction jobs. Westfield Culver City currently employs over 2,000
people and generates approximately $3 million in revenues annually for the City and
at least $15 million in revenues for the state. The Agency is also working to develop
a dynamic, sustainable Transit Oriented Development at the initial terminus of the
Metro Exposition Light Rail line in Culver City. This mixed use project will feature
housing, office, retail and hotel use and is a collaborative effort with Metro, Caltrans
and the City of Los Angeles.
Redevelopment has been a valuable tool for Culver City. There is a concern that the
elimination of the Redevelopment Agency would negatively impact Culver City, the
municipal bond market, and financial markets overall. Further, this past November,
the state’s voters demonstrated their support for redevelopment agencies by
overwhelmingly supporting Proposition 22, which constitutionally protects local
authority and revenues, leading many to believe that there are serious legal
concerns with the Governor’s proposal.
As it stands today, the State’s proposal to permanently eliminate redevelopment
could seriously impact all redevelopment activity in Culver City, significantly impact
local economic development efforts, and result in the loss of hundreds of thousands
of jobs and billions of dollars in local economic activity throughout California.
The City Council and Agency Board have already been active in advocating Culver
City’s opposition to the Governor’s proposal to eliminate redevelopment. The
attached joint resolution provides the City Council and the Redevelopment Agency
Board of Directors an additional opportunity to further express Culver City’s position.
If adopted, the joint resolution would be forwarded to the Governor’s office, our state
legislators, the League of California Cities, the California Redevelopment
Association, and other stakeholders.
City of Culver City, California
Agenda Item Report
FISCAL ANALYSIS:
There is no fiscal impact related to the adoption of the joint resolution. There would
be significant negative financial consequences for the City if the Agency were
eliminated.
ATTACHMENTS:
1. Proposed City Council and Agency Board Joint Resolution
MOTION:
That the City Council and Agency Board:
Adopt a joint resolution opposing the all proposals to abolish Redevelopment
Agencies.
MEETING DATE: 03.07.11
AGENDA ITEM: Adoption of a Joint Resolution in Opposition to All
Proposals to Abolish Redevelopment Agencies
ATTACHMENTS
Pages
1. City Council/Redevelopment Resolution (Joint) 1-3
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CITY COUNCIL RESOLUTION NO. 2011- R
REDEVELOPMENT AGENCY BOARD RESOLUTION NO. 2011- A
A JOINT RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CULVER CITY, CALIFORNIA AND THE CULVER CITY
REDEVELOPMENT AGENCY BOARD OPPOSING ANY
PROPOSALS TO ABOLISH REDEVELOPMENT AGENCIES IN
CALIFORNIA.
WHEREAS, redevelopment works to improve existing properties and attract
new development throughout Culver City and helps ensure those properties reach their
highest and best use, contributing positively to a balanced and prosperous community;
and,
WHEREAS, redevelopment has been effective in stimulating private
reinvestment by eradicating blight, increasing public safety, and creating opportunities for
business growth, jobs, and affordable housing; and,
WHEREAS, in the City of Culver City, 20% of the Culver City Redevelopment
Agency's tax increment revenue is set aside for affordable housing programs that range
from homeless services and new construction to rental assistance and rehabilitation of
single and multi-family homes; and,
WHEREAS, numerous housing, commercial, retail, restaurant, infrastructure
and beautification projects in Culver City would not have been completed without the use
of tools available to redevelopment agencies; and,
WHEREAS, the Culver City Redevelopment Agency has created pedestrian
place-making projects that have been thoroughly endorsed by the community and have
revitalized underperforming areas of the City; and,
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WHEREAS, the Culver City Redevelopment Agency is currently involved in
the development of a major transit-oriented district that will bring housing, employment, and
shopping together to improve regional air quality; and,
WHEREAS, as part of his 2011-12 budget proposal, the Governor has
supported permanently abolishing California's more than 400 local redevelopment
agencies; and,
WHERAS, this proposal will destroy local economic development, including
hundreds of thousands of jobs and billions of dollars in local economic activity throughout
California; and,
WHEREAS, in Culver City, abolishing redevelopment would eliminate the
Redevelopment Agency's ability to assist very low, low, and moderate income households,
so that residents may live in decent, safe and sanitary housing units; and,
WHEREAS, abolishing redevelopment will take away one of the few tools
local governments have to combat blight and assist with urban infill development; and,
WHEREAS, the elimination of tax increment financing would destroy the
Culver City Redevelopment Agency's ability to maintain its financial obligations to the
Culver City Unified School District, an obligation that provides over $1 million each year to
the District; and,
WHEREAS, according to the State Controller's Office, this proposal will bring
very little financial benefit to the State as redevelopment agencies have more than $87
billion in bond and other contractual obligations that legally must be repaid before revenues
are available for any other purpose; and
WHEREAS, the State Department of Finance's own budget documents
indicate there will be zero State savings from shutting down redevelopment; and,
-2- MICHEAL 0' LEARY, Chair
Culver City Redevelopment Agency
ATTEST:
CHRISTOPHER ARMENTA, Mayor
City of Culver City, California
ATTEST:
MARTIN R. COLE
City Clerk
APPROVED AS TO FORM:
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WHEREAS, shutting down redevelopment agencies is a violation of multiple
State and Federal constitutional provisions including, but not limited to, the constitutional
provisions added by a 61% majority of voters through their overwhelming support of
Proposition 22 in the November, 2010 election.
NOW, THEREFORE, the City Council of the City of Culver City, and the
Culver City Redevelopment Agency Board DO HEREBY JOINTLY RESOLVE as follows:
1. To formally oppose all proposals to abolish redevelopment in
California; and,
2. Authorize their respective elected officials and staff to communicate
this opposition to such proposals to the Governor, the Legislature, business groups,
citizens, and all others.
APPROVED AND ADOPTED, this day of , 2011.
,„
ALICE PRASAD
Agency Secretary
APPROVED AS TO FORM:
City Attorney
OL A. SCHWAB MURRAY 0. KANE
Agency General Counsel
Al 1-00099
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