| What
is
Redevelopment? |
| |
Redevelopment
is
a
process
created
to
assist
city
and
county
government
in
eliminating
blight
from
a
designated
area.
Other
goals
include
achieving
desired
development,
reconstruction
and
rehabilitation
including,
but
not
limited
to
residential,
commercial,
industrial,
and
retail.
Redevelopment,
under
the
California
Community
Redevelopment
Law,
is
one
of
the
last
available
processes
which
has
the
authority,
scope,
and
financial
means
to
provide
the
necessary
stimulus
to
reverse
deteriorating
trends,
remedy
blight,
and
create
a
new
image
for
many
communities. |
| What
is
a
Redevelopment
Agency? |
| |
In
each
community
there
is
a
Redevelopment
Agency,
a
public
body,
which
becomes
empowered
to
act.
The
agency
is
a
separate
local
governing
body
created
by
state
law
to
carry
out
state
policy. |
| What
benefit
can
a
citizen
receive
by
being
in
a
redevelopment
project
area? |
| |
Redevelopment
is
one
of
the
most
effective
ways
to
breathe
new
life
into
deteriorated
areas
plagued
by
social,
physical,
environmental
or
economic
conditions
which
act
as
a
barrier
to
new
investment
by
private
enterprise.
Through
redevelopment,
a
project
area
will
receive
focused
attention
and
financial
investment
to
reverse
deteriorating
trends,
create
jobs,
revitalize
the
business
climate,
rehabilitate
and
add
to
the
housing
stock,
and
gain
active
participation
and
investment
by
citizens
which
would
not
otherwise
occur. |
| What
is
a
redevelopment
plan?
|
| |
A
redevelopment
plan
presents
a
process
and
a
basic
framework
within
which
specific
projects
will
be
undertaken.
The
plan
provides
the
CDDA
with
powers
to
take
certain
actions
such
as
to
buy
and
sell
land
within
the
area
covered
by
the
plan
(project
area),
improve
dilapidated
facilities
and
use
tax
increment
financing. |
| What
is
a
project
area? |
| |
The
area
within
which
actual
redevelopment
will
take
place.
The
project
area
must
first
go
to
a
public
hearing
(giving
citizens
who
will
be
included
in
the
project
area
a
chance
to
express
their
views).
After
this
hearing,
the
Redevelopment
Agency
acts
on
the
adoption
of
the
project
area
and
becomes
primarily
responsible
for
future
projects. |
| Why
do
we
have
redevelopment
projects? |
| |
The
basic
reason
for
establishing
redevelopment
projects
is
to
secure
funds
that
can
be
used
to
attract
commercial,
industrial,
retail,
and
residential
development
in
order
to
eliminate
blight
and
improve
an
area. |
| How
do
redevelopment
agencies
secure
funds? |
| |
State
law
makes
available
to
redevelopment
agencies
a
method
of
obtaining
funds
called
"tax
increment
financing."
On
the
date
the
City
Council
approves
a
redevelopment
plan,
the
property
within
the
boundaries
of
the
plan
has
a
certain
total
property
tax
value.
If
this
total
assessed
valuation
increases,
most
of
the
taxes
that
are
derived
from
the
increase
go
to
the
Redevelopment
Agency.
These
funds
are
called
"tax
increments."
Usually,
the
flow
of
tax
increment
revenues
to
the
Agency
will
not
be
sufficient
in
itself
to
finance
the
full
scope
of
redevelopment
activities
and
development
projects.
Therefore,
agencies
issue
bonds.
These
bonds
are
not
a
debt
of
the
City
or
County
and
are
repaid
solely
from
tax
increment
revenues.
Tax
increments
can
be
used
only
in
the
same
project
which
generates
them,
except
for
residential
projects
which
benefit
low-
and
moderate-
income
households. |
| Will
property
taxes
be
raised? |
| |
It
is
important
to
note
that
higher
taxes
from
the
sale,
development
or
rehabilitation
of
property
reflects
a
rise
in
property
value
and
not
an
increase
in
tax
rate.
Until
a
property
is
improved
or
sold,
assessed
values
and
tax
rates
in
redevelopment
areas
are
restricted
by
Proposition
13
limitations. |
| Why
does
the
Agency
have
the
power
of
eminent
domain
(condemnation
of
property)? |
| |
Private
developers
seldom
can
assemble
many
separate
parcels
of
land
into
a
site
large
enough
for
their
needs.
One
small
"hold
out"
can
refuse
to
sell
at
any
price
and
block
the
entire
development.
The
Agency
can,
if
necessary,
use
its
power
of
eminent
domain
to
acquire
the
hold-out
parcel
and
permit
the
development
to
proceed. |
| What
is
relocation? |
| |
Relocation
is
the
displacement
of
a
business
or
family
for
the
purpose
of
clearing
land
and
preparing
it
for
its
designated
use.
When
a
person
or
business
meets
the
legal
qualifications,
the
Redevelopment
Agency
pays
for
assistance
in
finding
a
new
location,
payments
to
help
cover
moving
costs,
and
payments
for
certain
other
costs
as
provided
by
law. |
| If
a
citizen
should
decide
to
sell
property
to
the
agency,
who
determines
the
selling
price? |
| |
The
Agency
would
hire
an
independent
appraiser
to
establish
the
fair
market
value
of
the
property.
If
the
owner
is
not
satisfied
with
the
appraised
value
of
the
property,
he
may
hire
his
own
appraiser
to
re-evaluate
the
property
after
which
both
appraisals
will
be
compared
and
a
selling
price
negotiated.
Fair
market
value
is
the
value
that
the
property
would
have
if
it
were
placed
in
today's
market
place
and
sold. |
| How
will
this
affect
the
city/county
and
other
taxing
agencies
in
regard
to
tax
revenue
loss? |
| |
Other
taxing
agencies
will
lose
part
of
the
new
property
taxes
generated
by
redevelopment,
but
will
continue
receiving
the
base
revenues.
However,
in
blighted
areas,
the
property
values
would
not
increase
without
redevelopment
activities.
Other
taxing
agencies
will
receive
non-property
tax
revenues
and
revenues
generated
outside
the
project
area
as
a
direct
result
of
redevelopment
activities,
i.e.,
sales
taxes,
hotel
room
taxes,
and
property
taxes. |
