The Unknown Government. RDA. The Redevelopment Agency.

"I'm from Redevelopment and I am here to help you". This unknown government, redevelopment, is an entrenched special interest. It thrives on contributions from its beneficiaries and from lack of awareness of the general public.

A Redevelopment Agency is an entirely separate government authority with its own budget, staff, and expanded powers to issue debt and condemn private property. The governing board is appointed by the City Council.

Thus, an Agency and City may appear to be one entity. Usually, City Councils appoint themselves as Agency board members, with Council meetings doubling as Redevelopment meetings.

Summarizing the nature of redevelopment is unlike new Counties, Cities and School Districts, it can be unlike other governments, it may use the power of Eminent Domain to benefit private interest. Unlike other governments, it can incur bonded indebtedness without voter approval.

This unknown government provides no public services. It does not educate our children or maintain our streets, protect us from crime, nor stock our libraries.

To eliminate alleged blight, a Redevelopment Agency has extraordinary powers of tax increment, bonded debt, business subsidies, and Eminent Domain. The following facts are true about the unknown government:

1. BLIGHT IS BOGUS.

2. TAX INCREMENT DIVERSION.

3. BONDED DEBT; PLAY NOW, PAY LATER.

4. BUSINESS SUBSIDIES.

5. HOUSING SCAM.

6. EMINENT DOMAIN.

7. ISSUES THAT MUST BE ADDRESSED.

8. GOOD NEWS.

9.RECLAIMING REDEVELOPMENT REVENUE.

"It's is easy...blight is whatever we say it is".

All a City needs to do is to create or expand a redevelopment area and declare it "blighted". Residential areas, stadiums, and shopping centers have been all designated as "Blight" for redevelopment purposes.

To make a finding of blight, a consultant is hired to conduct a study. New redevelopment are largely driven by city's staff who are the consultants with the approval of the city council.

Consultants know their job is not to determined if there is blight, but to declare blighted whatever community conditions may be.

Once the consultant's blight findings are ratified, a City may create or expand a redevelopment area. Voter approval is never asked. So, cities adopt very loosen and very creative definitions of blight.

"Eat hearty, boys...plenty more where this came from".

A redevelopment agency has the exclusive use of all increases in property tax revenue generated in its designated project areas.

Once a redevelopment project area is created, all property tax increment within it goes directly to the agency and away from the cities, counties and school districts that would normally receive them.

While inflation naturally force up expenses for public service such as education and police, their property tax revenues within a redevelopment area are thus frozen. All new revenues beyond the base year can be spent only for redevelopment purposes.

If redevelopment were a temporary measure, as advocates once claimed, this diversion might be sustainable. Once a agency is disbanded, all the property tax revenues would be restored to local goverments. Legally, agencies are supposed to sunset after 40 years, but the law contains many exceptions and is easily circumvented. Tougher sunset legislation is needed to close agencies at a predetermined date. Only then will property tax diversion end the funds restored to the public. In short,

there is money to build a auto mall and hotels, but less for police, fire fighters and librarians. Cities cannot use redevelopment money to pay for salaries, public safety, or maintenance, which are far the largest share of municipal budgets.

BONDED DEBT: play now and pay later. consultants, lawyers, and bond brokers.

"It's easy...when you don't have to ask the voters!"

An agency has the power to sell bonds secured against future tax increment, and may do so without voter approval. It is troubling enough that redevelopment agencies divert property tax, increment revenues may only be used to pay off outstanding debt. Pay as you go is not part of redevelopment law or philosophy.

Debt is not just a temptation. It is a requirement. That is why redevelopment hearings features three groups of outside "experts", the blight consultants, the lawyers, and the bond brokers. These three experts help the agency receive tax increment. There are two reasons redevelopment debt is so attractive.

First, redevelopment agencies may sell bonded debt without voter approval. Unlike to State, counties, and school districts the debts does need to be justified or approved by the taxpayers. A quick majority vote by the agency is all that is needed..

Second, bond brokers love to sell redevelopment debt. The commissions are high and the buyers plentiful.

Since the debt is secured against future property tax revenue, they are seen as secure and lucrative.

If an agency over extends, then surely the City's general fund will cover the debts. Thus, bond holders and their brokers are profiting handsomely from redevelopment debt, whole pocketing property taxes should go to the public service.

"Isn't economic development great?"

An agency has the power to give public money directly to developers and other private businesses in the form of cash grants. tax rebates. and FREE LAND. ( all familiar for North and South Lake)

Economic developoment is a common cliche among city governments and redevelopment agencies. It refers to a belief that subsidies to selected private businesse can stimulate the local economy. It presumes that government planners can allocate resources more efficiently the free market.

The legal purpose for redevelopment remains the elimination of blight. All economic development activities must pay lip servies toward that goal. Behind this facade, redevelopment has subsidized giant retailers luxury hotels, golf courses, stadiums, and even gambling casinos.

Is there any evidence that redevelopment has promoted economic development in blighted areas?

"There is no room for you".

By state law, redevelopment agencies must spend 20% of their budget on housing. This housing set aside a fund that was intended to improve the quality and expand the supply of low cost housing.

In reality; however, most agencies resist spending money on new housing. When they do, the funds areoften squandered and often displace more people that they house. Many other agencies find creative ways to "launder" their housig money into commercial and other uses. Cities simply refuse to spend any of the 20% on housing and do not want to accommodate housing. The California Redevelopment Association has lobbied the legislature for the eliminaton of the housing requirement. Housing advocates have been able to keep the 20% mandate, but have come to realize that it has done nothing to help low wage earners or expand low cost housing.

EMINENT DOMAIN: (you must surrender the ownership of your property. The will of the City dedicates "fair compensation" for your property. Their opinion is what fairness is all about. Humanity and loyalty of the property owner is set aside for profit.

"What's mine is mine..and what's yours in mine".

An agency has expanded powers to condemn private property, not just for public use, but to transfer to other private owners.

Whole areas of cities have been acquired, demolished, and handed over to developers to recreate in their own image. Historic buildings, local businesses, and unique neighborhoods are replaced by generic developments devoid of the special flavor that once gave communities their identities.

Typical is the experience of Anaheim having demolished its historic central business district in the mid -1970's, the redevelopment agency hired consultants to help restore the identity of a downtown that no longer exist. The North Lake project must be stopped in order to save the historic roots and identity of San Bernardino.

THE REDEVELOPMENT ESTABLISHMENT. ( The redevelopment establishment will eventually cease to exist under its present operation because economically it is unprofitable.

"Your gravy train ends here!"

Eminent Domain: Control must be placed on the widespread abuse of eminent domain.

Sales Tax Reform: Some type of per-capita sales tax disbursement would end predatory redevelopment and return cities to an equal footing. To assure an stable revenue flow based on population, cities could concentrate on providing basic servies rather than susidizing new businesses.

Debt Control: Redevelopmenht debt subject to vote approval. This woulo limit debt issuance and make agencies more publicly accountable.

Mandatory sunsets: The 40 years sunset law must be given teeth and enforced. If redevelopment agency truly have eliminated blight, then there should be no furthr need for them.

Infrastructure: Redevelopment funds are public funding that should be spent on public infrastructure, not on private projects.

Comprehensive fisal reform: A rational and stable method of funding local governement can be found, shifting cities back to greater reliance on property taxes and less on sales taxes.

GOOD NEWS:

Opposition to redevelopment is growing and cuts across partisan lines. It includes pro-property rights. Republicans and anti-corporate welfare democrats includes conservatives oppposed to growing public debt and liberals opposed to the destruction of poor neighborhoods. It includes free market

liberatarians and civil rights activist fighting the displacement of miniorities communities. It includes environmentalist concerned about suburban sprawl and preservationist lamenting the demolishing of a historic downtown.

You can help by expressing your point of view and casting your vote. You may also contribute as a local and state activist or challenge the project legally and changing the State Legislation.

RECLAIMING REDEVELOPMENT REVENUE. Abolishing a Corporate Welfare is the foundation of a Free Market.

"Finally, services to serve and protect the public is here".

Cities without redevelopment are 38% per capita income richer opposed to cities with redevelopment.

Public money should be spend to serve and protect the public, not enrich private interest. The 2.8 billion property taxes currently diverted by redevelopment agencies can be reclaimed to meet all human needs.

State golvernment has full powers over all redevelopment agencies in California. Though administered locally and collectively an arm of State Government can be reformed directly by the legislature or state initiative.

Building shopping malls, auto dealership and pro sports stadiums is a proper function of the free market. If there is a market for them, they will all be built, with or without government subsidy.

Public infrastructure, public education, and public safety; however, are State responsibilities.

We the voters, have the power to redirect redevelopment funds back serving the public, either through legislation ballot initiative, we should do so.