HomeMy WebLinkAboutMINUTES - 05182010 - C.76RECOMMENDATION(S):
SUPPORT AB 2531 (Fuentes), a bill that would give redevelopment agencies specific and
unambiguous authority to use redevelopment funds for economic development purposes in
order to enhance job opportunities within redevelopment areas; and AUTHORIZE the
Redevelopment Director to communicate the Agency's support for the bill to the County's
legislative delegation.
FISCAL IMPACT:
No fiscal impact to the County. An early concern of counties was that redevelopment
agencies would use the provisions of this bill as a basis for redevelopment plan fiscal cap
increases or plan time limit extensions. The bill was amended to preclude redevelopment
agencies from using the provisions of the bill as a basis for a redevelopment plan
amendment.
BACKGROUND:
California is in the midst of a severe recession. The major tool for economic stimulus in the
State of California is redevelopment. The authority for using redevelopment
APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
Action of Board On: 05/18/2010 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF SUPERVISORS
AYE:John Gioia, District I
Supervisor
Gayle B. Uilkema, District II
Supervisor
Mary N. Piepho, District III
Supervisor
Susan A. Bonilla, District IV
Supervisor
ABSENT:Federal D. Glover, District V
Supervisor
Contact: Jim Kennedy, 335-7225
I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the
Board of Supervisors on the date shown.
ATTESTED: May 18, 2010
David J. Twa, County Administrator and Clerk of the Board of Supervisors
By: EMY SHARP, Deputy
cc:
C.76
To:
From:Jim Kennedy, County Redevelopment Director
Date:May 18, 2010
Contra
Costa
County
Subject:Support AB 2531 (Fuentes)
BACKGROUND: (CONT'D)
for economic development purposes is located in disparate areas of the California
Redevelopment Law (Health and Safety Code Section 33000 et seq.) and is sometimes
ambiguous. AB 2531 would provide specific and unambiguous authority to use tax
increment funds in order to enhance job opportunities within redevelopment project areas,
including:
• assistance (loans, loan guarantees, etc.) to industrial and manufacturing uses, including
those in the green economy;
• assistance to retain and expand existing industrial and manufacturing uses;
• permit job training, job placement, apprenticeship, and pre-apprenticeship programs and
services;
• permits assistance to establish small business incubators; and
• permits assistance to owners or tenants of commercial buildings to rehabilitate or
expand the structures, and increase the energy efficiency of the structures;
If approved, AB 2531 would allow the tools of redevelopment to be used more
efficiently to provide short-term and long-term economic stimulus to the State of
California.
CONSEQUENCE OF NEGATIVE ACTION:
CHILDREN'S IMPACT STATEMENT:
ATTACHMENTS
AB 2531 - 4.29.10
AMENDED IN ASSEMBLY APRIL 29, 2010
AMENDED IN ASSEMBLY APRIL 20, 2010
california legislature—2009–10 regular session
ASSEMBLY BILL No. 2531
Introduced by Assembly Member Fuentes
(Principal coauthor: Assembly Member Bradford)
February 19, 2010
An act to amend, repeal, and add Sections 33020, 33021, 33071,
33440, 33444.5, and 33444.6 of, to add and repeal Sections 33131.5
and 33333.9 to of, and to add and repeal Article 10.5 (commencing
with Section 33427) to of Chapter 4 of Part 1 of Division 24 of, the
Health and Safety Code, relating to redevelopment.
legislative counsel’s digest
AB 2531, as amended, Fuentes.Redevelopment: economic
development.
(1) The Community Redevelopment Law authorizes the establishment
of redevelopment agencies in communities in order to address the effects
of blight, as defined, in those communities and requires those agencies
to prepare, or cause to be prepared, and approve a redevelopment plan
for each project area. Existing law defines the term “redevelopment”
for these purposes and specifies the scope of activities that the term
includes. Existing law also makes specified legislative findings and
declarations regarding the fundamental purposes of redevelopment.
This bill would include in the definition of the term “redevelopment”
those activities that support result in the provision of employment
opportunities and expand the scope of activities included in that term.
This bill would also make additional legislative findings and declarations
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regarding the fundamental purposes of redevelopment. The bill would
additionally authorize the Redevelopment Agency of the City of Los
Angeles, at the request of its legislative body, to prepare applications
for, and execute, economic development programs, to accept public or
private assistance, and to expend those funds for any economic
development activities inside or outside a project area within the
territorial jurisdiction of the agency. The bill would also authorize a
redevelopment agency to provide assistance for establishment and
maintenance of a small business incubator. This bill would also prohibit
an agency from amending a redevelopment plan to increase or extend
certain required limitations for the purpose of implementing these
provisions.
(2) Existing law authorizes an agency to construct foundations,
platforms, and other structural forms necessary for the provision or
utilization of air rights sites for buildings to be used for residential,
commercial, industrial, or other uses contemplated by the redevelopment
plan. An agency is also authorized to establish a program under which
it loans funds to owners or tenants for the purpose of rehabilitating
commercial buildings or structures within the project area.
This bill would expand the agency’s programmatic authority by
authorizing it to provide loans, financial guarantees, or other financial
assistance to owners or tenants in a redevelopment project area for
retaining or expanding employment in the project area, increasing energy
efficiency of buildings in the project area, or for any other
redevelopment purpose, as specified.
(3) This bill would repeal its provisions on January 1, 2016, as
specified.
This
(4) This bill would make legislative findings and declarations as to
the necessity for a special statute.
Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
The people of the State of California do enact as follows:
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SECTION 1.Section 33020 of the Health and Safety Code is
amended to read:
33020.(a) “Redevelopment” means the planning, development,
replanning, redesign, clearance, reconstruction, or rehabilitation,
or any combination of these, of all or part of a survey area, and
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the provision of those residential, commercial, industrial, public,
or other structures or spaces as may be appropriate or necessary
in the interest of the general welfare, including recreational and
other facilities incidental or appurtenant to them, activities that
support result in the provision of employment opportunities, and
payments to school and community college districts in the fiscal
years specified in Sections 33681, 33681.5, 33681.7, 33681.9, and
33681.12.
(b) This section shall remain in effect only until January 1, 2016,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2016, deletes or extends that date.
SEC. 1.5.Section 33020 is added to the Government Code, to
read:
33020.(a) “Redevelopment” means the planning, development,
replanning, redesign, clearance, reconstruction, or rehabilitation,
or any combination of these, of all or part of a survey area, and
the provision of those residential, commercial, industrial, public,
or other structures or spaces as may be appropriate or necessary
in the interest of the general welfare, including recreational and
other facilities incidental or appurtenant to them and payments to
school and community college districts in the fiscal years specified
in Sections 33681, 33681.5, 33681.7, 33681.9, and 33681.12.
(b) This section shall become operative on January 1, 2016.
SEC. 2.Section 33021 of the Health and Safety Code is
amended to read:
33021.(a) Redevelopment includes the following:
(a)
(1) The alteration, improvement, modernization, reconstruction,
or rehabilitation, or any combination of these, of existing structures
in a project area.
(b)
(2) Provision for open-space types of use, such as streets and
other public grounds and space around buildings, and public or
private buildings, structures and improvements, and improvements
of public or private recreation areas and other public grounds.
(c)
(3) The replanning or redesign or original development of
undeveloped areas as to which either of the following conditions
exist. exist:
(1)
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(A) The areas are stagnant or improperly utilized because of
defective or inadequate street layout, faulty lot layout in relation
to size, shape, accessibility, or usefulness, or for other causes.
(2)
(B) The areas require replanning and land assembly for
reclamation or development in the interest of the general welfare
because of widely scattered ownership, tax delinquency, or other
reasons.
(d)
(4) The provision of direct assistance to businesses in connection
with new or existing facilities within redevelopment project areas
for industrial or manufacturing uses, including loans, loan
guarantees, and other financial assistance, and the provision or
replacement of machinery and equipment in those facilities,
provided the assistance is intended to retain or expand reasonably
expected to result in the retention or expansion of the number of
persons employed in industrial or manufacturing jobs and achieve
any of the following:
(1)
(A) Reduce emissions of greenhouse gases.
(2)
(B) Increase the use of clean, renewable, or alternative energy.
(3)
(C) Increase energy efficiency.
(4)
(D) Increase the use of recycled and locally sourced materials.
(5)
(E) Increase efficiency in water, wastewater and stormwater
systems.
(6)
(F) Increase the efficiency of construction methods.
(7)
(G) Reduce demolition and construction-induced pollution and
waste material generation.
(8)
(H) Improve indoor air quality.
(9)
(I) Reduce building operation costs through increased operation
and maintenance efficiency.
(10)
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(J) Reduce public infrastructure costs related to development.
(e)
(5) Job training, job placement, apprenticeship and
preapprenticeship programs, and services relating to construction
or to operations of businesses in project areas.
(b) This section shall remain in effect only until January 1, 2016,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2016, deletes or extends that date.
SEC. 2.5.Section 33021 is added to the Government Code, to
read:
33021.(a) Redevelopment includes the following:
(1) The alteration, improvement, modernization, reconstruction,
or rehabilitation, or any combination of these, of existing structures
in a project area.
(2) Provision for open-space types of use, such as streets and
other public grounds and space around buildings, and public or
private buildings, structures and improvements, and improvements
of public or private recreation areas and other public grounds.
(3) The replanning or redesign or original development of
undeveloped areas as to which either of the following conditions
exist:
(A) The areas are stagnant or improperly utilized because of
defective or inadequate street layout, faulty lot layout in relation
to size, shape, accessibility, or usefulness, or for other causes.
(B) The areas require replanning and land assembly for
reclamation or development in the interest of the general welfare
because of widely scattered ownership, tax delinquency, or other
reasons.
(b) This section shall become operative on January 1, 2016.
SEC. 3.Section 33071 of the Health and Safety Code is
amended to read:
33071.(a) The Legislature further finds and declares that a
fundamental purpose of redevelopment is to expand the supply of
low- and moderate-income housing, to expand employment
opportunities for jobless, underemployed, and low-income persons,
to attract and retain businesses in order to enhance employment
opportunities, and to provide an environment for the social,
economic, and psychological growth and well-being of all citizens.
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(b) This section shall remain in effect only until January 1, 2016,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2016, deletes or extends that date.
SEC. 3.5.Section 33071 is added to the Government Code, to
read:
33071.(a) The Legislature further finds and declares that a
fundamental purpose of redevelopment is to expand the supply of
low- and moderate-income housing, to expand employment
opportunities for jobless, underemployed, and low-income persons,
and to provide an environment for the social, economic, and
psychological growth and well-being of all citizens.
(b) This section shall become operative on January 1, 2016.
SEC. 4.Section 33131.5 is added to the Health and Safety
Code, to read:
33131.5.(a) In addition to authority otherwise provided in
this part, the Redevelopment Agency of the City of Los Angeles,
at the request of its legislative body, may do both of the following:
(a)
(1) Prepare applications for various state and federal grant
programs relating to economic development, plan and carry out
those programs and expend grant funds inside or outside any
redevelopment project area within the territorial jurisdiction of the
agency, and comply with any conditions of the program.
(b)
(2) Accept any other assistance from the state or federal
government or any public or private source, spend those funds for
any economic development activities inside or outside any
redevelopment project area within the territorial jurisdiction of the
agency, and comply with any conditions of that assistance.
(b) This section shall remain in effect only until January 1, 2016,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2016, deletes or extends that date.
SEC. 5.Section 33333.9 is added to the Health and Safety
Code, to read:
33333.9.(a) An agency shall not amend a redevelopment plan
to increase or extend the limits imposed pursuant to Section
33333.2, 33333.4, or 33333.6 for the purpose of implementing the
authority granted by the act adding this section.
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(b) This section shall remain in effect only until January 1, 2016,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2016, deletes or extends that date.
SEC. 6.Article 10.5 (commencing with Section 33427) is
added to Chapter 4 of Part 1 of Division 24 of the Health and Safety
Code, to read:
Article 10.5. Small Business Development
33427.(a) In addition to any other authority granted under
this part, an agency may, within a project area, for the purposes
of redevelopment, assist public agencies or private nonprofit
corporations to establish, construct, and maintain a small business
incubator.
(b) In addition to any other authority granted under this part, an
agency may, for the purposes of redevelopment, provide loan
guarantees for small businesses located within a project area.
(c) For the purposes of this section, “small business” shall have
the same meaning as defined in Section 11342.610 of the
Government Code.
33428.This article shall remain in effect only until January 1,
2016, and as of that date is repealed, unless a later enacted statute,
that is enacted before January 1, 2016, deletes or extends that
date.
SEC. 7.Section 33440 of the Health and Safety Code is
amended to read:
33440.(a) Except as provided in Article 9 (commencing with
Section 33410), Article 10.5 (commencing with Section 33427),
or Section 33444.6, this part does not authorize an agency to
construct any of the buildings for residential, commercial,
industrial, or other use contemplated by the redevelopment plan,
except that, in addition to its powers under Section 33445, an
agency may construct foundations, platforms, and other like
structural forms necessary for the provision or utilization of air
rights sites for buildings to be used for residential, commercial
industrial, or other uses contemplated by the redevelopment plan.
(b) This section shall remain in effect only until January 1, 2016,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2016, deletes or extends that date.
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SEC. 7.5.Section 33440 is added to the Government Code, to
read:
33440.(a) Except as provided in Article 9 (commencing with
Section 33410), this part does not authorize an agency to construct
any of the buildings for residential, commercial, industrial, or
other use contemplated by the redevelopment plan, except that, in
addition to its powers under Section 33445, an agency may
construct foundations, platforms, and other like structural forms
necessary for the provision or utilization of air rights sites for
buildings to be used for residential, commercial industrial, or
other uses contemplated by the redevelopment plan.
(b) This section shall become operative on January 1, 2016.
SEC. 8.Section 33444.5 of the Health and Safety Code is
amended to read:
33444.5.(a) An agency may establish a program under which
it provides loans, financial guarantees, or other financial assistance
to owners or tenants in a redevelopment project area, for any of
the following purposes:
(a)
(1) Rehabilitating commercial buildings or structures within the
project area.
(b)
(2) Retaining or expanding employment in the project area.
(c)
(3) Increasing energy efficiency of buildings in the project area.
(d)
(4) Any other redevelopment purpose specified in Section
33021.
(b) This section shall remain in effect only until January 1, 2016,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2016, deletes or extends that date.
SEC. 8.5.Section 33444.5 is added to the Government Code,
to read:
33444.5.(a) An agency may establish a program under which
it loans funds to owners or tenants for the purpose of rehabilitating
commercial buildings or structures within the project area.
(b) This section shall become operative on January 1, 2016.
SEC. 9.Section 33444.6 of the Health and Safety Code is
amended to read:
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33444.6.(a) Within a project area and as part of an agreement
that provides for the development, rehabilitation, or use of property
that will be used for industrial or manufacturing purposes, an
agency may assist with the financing of facilities or capital
equipment, including, but not necessarily limited to, pollution
control devices.
(b) In addition to any other authority granted pursuant to this
part, an agency may, for the purposes of redevelopment, construct
buildings for industrial or manufacturing purposes that meet the
criteria in subdivision (e) of Section 33021.
(c) Prior to entering into an agreement for a development that
will be assisted pursuant to this section, the agency shall find, after
a public hearing, that the assistance is necessary for the economic
feasibility of the development and that the assistance cannot be
obtained on economically feasible terms in the private market.
(d) This section shall remain in effect only until January 1, 2016,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2016, deletes or extends that date.
SEC. 9.5.Section 33444.6 is added to the Health and Safety
Code, to read:
33444.6.(a) Within a project area and as part of an
agreement that provides for the development or rehabilitation of
property that will be used for industrial or manufacturing purposes,
an agency may assist with the financing of facilities or capital
equipment, including, but not necessarily limited to, pollution
control devices.
(b) Prior to entering into an agreement for a development that
will be assisted pursuant to this section, the agency shall find, after
a public hearing, that the assistance is necessary for the economic
feasibility of the development and that the assistance cannot be
obtained on economically feasible terms in the private market.
(c) This section shall become operative on January 1, 2016.
SEC. 10.The Legislature finds and declares that the purpose
of this act is to clarify existing law and to provide agencies with
additional authority to assist businesses in order to encourage the
retention of existing employment opportunities and the attraction
of new employment opportunities. Nothing in this act shall be
construed as limiting or restricting the authority that an agency
possessed prior to the effective date of this act.
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SEC. 11.The Legislature finds and declares, with respect to
Section 4 of this act, that a special law is necessary and that a
general law cannot be made applicable within the meaning of
Section 16 of Article IV of the California Constitution because of
the unique circumstances, needs, and challenges of the City of Los
Angeles.
O
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