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Norby Notes 3 – RDAs: R.I.P.

Posted by Newsletter Reprint on February 8, 2012

This newsletter came across the wire yesterday from Assemblyman Chris Norby’s office:

Norby Notes 3
February, 2012 | Issue 03

RDAs: R.I.P.

As of February 1, California’s redevelopment agencies are officially dissolved. Fiscal reality led to their demise. Of California’s 482 cities, 368 were home to redevelopment agencies. It is an extremely rare case of the state abolishing an entire bureaucratic structure.

Created by the Legislature in 1952 to clean up blight in older cities, redevelopment grew to consume over $6 billion annually in local property taxes-that’s 12% of all such taxes statewide. With the state virtually broke, these losses were no longer sustainable. Those funds will now be returned to local government and education.

Redevelopment lobbyists and lawyers fought attempts by both Governor Schwarzenegger and Brown to use redevelopment funds to fund public schools. I joined a 52-24 bipartisan Assembly majority that was backed up by subsequent State Supreme Court decisions and the Governor now appears determined to veto any extension or revival of RDAs.

With this dissolution, K-12 education will ultimately receive $3 billion in additional revenue, community colleges $390 million, county services $1.3 billion, city general funds $860 million, and special districts $450 million. Before that happens, however, over $100 billion in bonded debt must be repaid.

Redevelopment was never intended to be permanent. While funds were properly used for public infrastructure, they also had become cash cows to subsidize big box retailers, NFL stadiums, auto malls, multiplex movie theaters, shopping malls and bars, often on land seized under threat of eminent domain.

Whether RDAs had successes or failures, they simply became too costly to maintain. Public subsidies are a poor way to stimulate economic development.

The Municipal Officials for Redevelopment Reform, which I have headed since 1996, will hold its final statewide conference on March 7 here in Sacramento. Those interested in participating should call Bruce Whitaker at 714-981-8474.

College Park to Prez. Homes

The Norby family is moving. We’re leaving my home of 31 years on Yale Avenue, in the 90-year old College Park district. The place has a lot of memories. I’ll especially miss the neighbors, the De León Bakery up on Chapman Avenue (great croissants). Martha will miss the roses and rhythmic rumble of the passing trains.

The old place has been bought by a Fullerton Planning Commissioner who owns of a local restoration business. He has the interest, expertise, and community roots to maintain and preserve the old home and keep it as an asset to the neighborhood.

We’re moving into a beautiful 60s era home in the President Homes neighborhood just west of Bastanchury and Brea. Best of all, it sits within one block of Beechwood School, which serves K-8th graders and is renowned for a dedicated staff and high parental involvement. My three kids will now be able to walk to school, as will my little Johnny when he reaches kindergarten in four years. The kids will have the freedom to stay after school and bring classmates home.

Question of the Week

Last Question: When was the last Super Bowl played in California?

Answer: 2003 in San Diego.

This Week’s Question: What California city has the highest current home foreclosure rate?

One Response to “Norby Notes 3 – RDAs: R.I.P.”

  1. Elaine's avatar

    Elaine said

    Now the bugedt limitations of LOCAL Police Departments, Libraries, Schools, Fire Departments etc. will be somewhat alleviated while the RDA that eminent domains private properties, feeds funds to fat cat politically connected developers will have to build their structures, the old fashioned way, through the time honored American FREE ENTERPRISE system. And yes, our 10 Commandments will once again be respected which includes THOU SHALT NOT STEAL THY NEIGHBOR’S PROPERTY.

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