News Release
February 1, 2012
Jobs, economic development, affordable housing and environmental cleanup projects at stake in Concord as Redevelopment Agency faces shut down deadline today
Jobs are at stake and numerous economic development projects face a sudden halt as today marks the deadline for the dissolution of redevelopment agencies, California’s vital economic development tool and only ongoing job creator.
Since the Supreme Court decision on Dec. 29 to uphold ABx1 26, the redevelopment elimination bill and strike down ABx1 27, the bill that would have allowed agencies to stay in operation as long as they made payments to the state, the City of Concord has been working with the League of California Cities and California Redevelopment Association on SB 659 to extend the deadline for agency dissolution to April 15.
Unfortunately, SB 659 did not make it through the legislature despite the efforts of more than 150 labor, public safety, business, housing, community and local government coalition partners who signed on to support the bill. During the process, three national bond rating agencies and Stewart Title Insurance Co. communicated that urgent action was needed to avoid possible bond defaults and title problems. Despite the clear warnings, Legislative leaders appear to have chosen inaction, and the poorly drafted provisions of ABx1 26 will be a reality.
“With the dissolution of redevelopment agencies, my community will lose $7.5 million dollars of funding that would go towards programs and activities to eliminate blight, create jobs, improve infrastructure and support affordable housing. In particular, more than $2 million in proposed capital improvement projects to improve road ways, underground utilities and improve Concord’s infrastructure have been eliminated. Affordable housing programs that provide first time home buyer and rehabilitation loans to income-qualified applicants have been essentially shut down. Programs that created more than 2 million square of office space making Concord the job center of Contra Costa County are lost,” said Mayor Ron Leone.
“In addition, the loss of redevelopment is especially devastating to the implementation of the community’s vision for reuse of the Concord Naval Weapons Station. Redevelopment was a tool the City was relying upon to carry out the steps needed to replace outdated infrastructure, construct roads, demolish antiquated military buildings, clean up residual contamination and restore and protect habitat. The loss of the use of redevelopment will most likely extend what was originally a 25-30 year build out of the area to over 45 years, delaying opportunities for job creation, affordable housing and access to open space, among other issues.”
Redevelopment is a vital economic development tool for California communities, is the state’s only ongoing job creator, and hastily closing down agencies without an alternative is devastating.
Cities across the state, including Concord, look forward to working with the League of California Cities and California Redevelopment Association to develop policy framework that would keep economic and sustainable development a priority for California cities.