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Long Beach Press Telegram, December 9, 2008 State is sued over plan to take funding
COURTS: Redevelopment group fears local projects will suffer if Sacramento diverts money for the budget. By Karen Robes Meeks, Staff Writer Posted: 12/08/2008 09:44:14 PM PST
The California Redevelopment Association, a nonprofit that has about 360 RDAs as members, filed suit Thursday against the state over a one-time $350million payment - $6 million of which would come from Long Beach - of redevelopment dollars to the state to trim its deficit.
The suit claims Gov. Arnold Schwarzenegger and lawmakers violated the constitution when they required the redevelopment agencies to contribute more for education programs so the state could pay less. CRA Executive Director John Shirey says this is the eighth time the state has tapped local redevelopment agencies since 1992, adding that five of those times were after 2000.
"Because the state's deficit is worse than ever and there's no prospect that the legislators will ever be able to come to an agreement to deal with their structural deficit, we think the chances are great that they will continue to steal redevelopment money every year," he said. "So we feel we have to take a stand now to enforce the constitution and do what the voters approved in 1952 when (they) allowed tax increment financing to be used for redevelopment."
The governor's finance spokesman, H.D. Palmer, says the one-time payment is "lawful and reasonable" for agencies to contribute more given the state's budget crisis. Making the payment - due on May 10 - will likely affect several redevelopment agencies, including Long Beach, which is expected to shell out about $6 million.
Projects in downtown, West, Central and North Long Beach redevelopment areas could be affected, said Long Beach Development Services Director Craig Beck. Those projects could include land acquisitions in the Central Area to help create medical office space in connection with Long Beach Memorial Medical Center. "It would slow that down and potentially halt some acquisitions," he said. He did not yet know specifically which properties.
The payment could also delay park projects in North Long Beach and a traffic improvement program that involves adding and synchronizing signals in West Long Beach. Beck added that a list of specific projects would ultimately be brought to the agency board for consideration. Cerritos' redevelopment agency, which will have to pay nearly $3 million, does not yet know how it will affect city projects. If this proceeds, City Manager Art Gallucci would come before the City Council if certain capital improvement projects need to be delayed or reconsidered, said spokeswoman Annie Hylton. Other agencies may pay smaller amounts but are nonetheless affected.
"That amount does hurt us significantly because of the way the economy is," said Lynn Komadina, spokeswoman for Bellflower, which is expected to pay at least $160,000 in redevelopment funding. "It hurts all cities significantly." Lakewood and Paramount are slated to pay about $661,000 and $845,000, respectively. "Redevelopment agencies have always been vulnerable," said Paramount City Manager Linda Benedetti-Leal. "It's just less money we can use to spend to help improve our community." Area cities expected to pay include: Compton ($1,697,718); Norwalk ($488,882); Signal Hill ($1,063,162); South Gate ($752,978); Carson ($2,083,737); Avalon ($303,710); Artesia ($111,408); Hawaiian Gardens ($503,176) and Downey ($292,862).
The Associated Press contributed to this report. karen.robes@presstelegram.com, 562-499-1303 |
