Mayors Gather in L.B. to Support Redevelopment

City leaders from around Southern California who want to stop the state from eliminating redevelopment agencies plan to announce their support for a lawsuit against the state at a gathering in Long Beach today.

Long Beach Mayor Bob Foster had to cancel his plans to attend the downtown Long Beach press conference but Vice Mayor Suja Lowenthal will attend along with numerous city mayors. The California League of Cities, the California Redevelopment Association and the cities of San Jose and Union City filed suit in the California Supreme Court Monday alleging that new laws requiring redevelopment agencies to pay the state in order to survive are unconstitutional. That option in the budget bills is not required but would allow for a city to retain its redevelopment powers.

Long Beach government affairs director Tom Modica said the city is still analyzing whether it would behoove the city to financially opt in to maintain redevelopment. He estimated the Legislation will cost Long Beach $34 million to opt in in the first year, and a minimum of $8 million ongoing. But if the redevelopment agency, or RDA, is shut down entirely and the city does not opt in, Long Beach would lose all redevelopment, and in addition, "the City would lose $114 million we have loaned redevelopment over the years."

Redevelopment law is complex and Modica said the budget legislation that would abolish redevelopment agencies is "badly written." About 42% of the 50-square-mile city is currently designated a redevelopment area but none exist in Belmont Shore. However, Modica said redevelopment funds would have paid for the East Division police substation to be remodeled but that project now can't begin.

 In a written statement, calling the state plans for the redevelopment agency a “ransom,” city officials from more than 10 cities indicated support for the lawsuit. They plan to gather on the steps of the of Long Beach Police Headquarters at 11:30 today to voice their support for the lawsuit.

The coalition is also asking the court to prevent the laws from going into effect until judges can render a ruling on the case itself, City News Service reported.

According to the lawsuit, assembly bills 1X 26 and 1X 27 violate Proposition 22, a constitutional amendment approved by voters in November. The two bills, approved by the legislature and signed by Gov. Jerry Brown in late June, dissolve redevelopment agencies unless they agree to pay the state a combined $1.7 billion by the end of the 2011 calendar year.

"California voters overwhelmingly passed Proposition 22 just eight months ago to stop state raids, shifts and diversions of local redevelopment funds," League of California Cities Executive Director Chris McKenzie said. "The governor and Legislature have blatantly ignored the voters and violated the state constitution.

"We must now go to the Supreme Court to uphold the voters' will and the constitution by overturning this unconstitutional legislation. We are confident the court will uphold the will of the voters."

Opponents of redevelopment agencies, including Brown, say the agencies siphon property tax dollars away from schools and public safety. Due to severe state funding cuts, Long Beach Unified School District--the city's largest employer--has had to lay off hundreds of school teachers and increase the number of students per classroom.

"We often hear that, that redevelopment is developers vs. schools, but nothing could be further from the truth," said Modica. 

City News Service contributed to this report.