Wednesday 7:30am | The Long Beach City Council voted unanimously last night on a series of motions to obligate over $1.2 billion in redevelopment funding in an effort to prevent the state from abolishing redevelopment agencies and taking the funds. The motions will now go to the Long Beach Redevelopment Agency board for their approval which is expected before the end of the month.
Governor Brown’s plan to close a $25 billion deficit includes the elimination of redevelopment agencies which will provide an addition $1.7 billion in revenue to the state $83.5 million of which will come from the elimination of the Long Beach Redevelopment Agency. The Governor has imposed a deadline of March for the legislature to act on his overall plan.
The council passed the following:
– Amend the existing agreement with the Redevelopment Agency of the City of Long Beach for the payment of debt service at CityPlace Parking Structures (A, B, and C) with funds from the Downtown Redevelopment Project Area through Fiscal Year 2017.
– Amend the Agreement for Services between the City of Long Beach and The Long Beach Housing Development Company; and authorize City Manager to encumber approximately $138,500,000 in current and future redevelopment housing set-aside to support affordable housing activities through Fiscal Year 2016.
– Authorize the City Manager to execute an Amended and Restated Agreement for Services between the City of Long Beach and the Redevelopment Agency to encumber approximately $886,000,000 in current and future redevelopment tax increment proceeds through Fiscal Year 2021 to support revitalization of neighborhoods throughout seven redevelopment project areas; and Adopt resolution making certain findings regarding the construction of certain public improvements in all Redevelopment Project Areas with the exception of West Beach.
– Authorize the City Manager to amend certain existing loan agreements between the City of Long Beach and the Redevelopment Agency of the City of Long Beach for the Downtown, Central and Poly High Redevelopment Project to update their repayment provisions.
– Authorize the City Manager to execute all related documents to implement an agreement with the Long Beach Redevelopment Agency to provide Neighborhood Code Enforcement and Graffiti Abatement services for 10 years.
Tuesday 8:00am | A special meeting of the Long Beach City Council will take place tonight (Tuesday) at 7:00pm during its regular scheduled council meeting to consider recommendations to preempt any state plan to eliminate redevelopment agencies statewide, including the Long Beach Redevelopment Agency. The series of recommendations will formalize the city’s current and future commitment of $1.2 billion in redevelopment projects.
Last week, Governor Brown issued a budget proposal statement to cut $12.5 billion in state spending that includes an 8-10% pay cut for most state employees and $500 million cuts to higher education.
As reported by the Long Beach Post here, the Governor’s proposed budget also calls for the elimination of local redevelopment agencies and state tax benefits for enterprise zones. The effects of these moves would be extreme in Long Beach, which has a large redevelopment agency and has benefited greatly from enterprise zones that cover 70% of the city. Brown will also ask voters in a special election to extend several taxes that are set to expire this year, including personal income and sales taxes as well as the Vehicle License Fee rate.
“These cuts will be painful, requiring sacrifice from every sector of the state, but we have no choice,” Brown said. “For 10 years, we’ve had budget gimmicks and tricks that pushed us deep into debt. We must now return California to fiscal responsibility and get our state on the road to economic recovery and job growth.”
Click here to view our policy on covering the Long Beach City Council.