HomeMy WebLinkAboutMINUTES - 04151986 - 1.39 1-03,9
TO: BOARD OF SUPERVISORS/REDEVELOPMENT AGENCY
FROM: Phil Batchelor, Executive Director
DATE: March 26, 1986
SUBJECT: Legislation: Assembly Bill 1473 (Stirling)
SPECIFIC REQUEST(S) OR RECOMMENDATIONS) & BACKGROUND AND JUSTIFICATION
RECOMMENDED ACTION:
Reaffirm the County/Redevelopment Agency position in opposition to AB 1473 by
Assemblyman Stirling which would require the Agency to hold a Public Hearing
and consider the fiscal effects of any Redevelopment plan adopted prior to
January 1, 1987 on the local school district.
FINANCIAL IMPACT:
With regard to the County Redevelopment Agency AB 1473 could result in the
diversion of tax increment from the Pleasant Hill BART Station area
redevelopment project to the local school district.
With regard to other Redevelopment Agencies within the County, this Bill could
result in increased project costs for existing Redevelopment projects to the
extent that tax increment is diverted to the local school district. Such
increase in costs would further lengthen the projects, thereby lengthening the
time before full property taxes are returned to the County general fund and
other taxing agencies.
BACKGROUND/REASONS FOR RECOMMENDATION:
On April 23, 1985 the County/Agency took a position in opposition to AB 1473,
which at that time would have required Redevelopment Agencies to share tax
increment with school districts under certain circumstances. The Bill has been
substantially amended and is somewhat more discretionary, but still has the
potential of placing an unreasonable burden on the County and the agency.
CONTINUED ON ATTACHMENT: X YES SIGNATURE:
RECOMMENDATION OF CAO/EXECUTIVE DIRECTOR _RECOMMENDATION OF BOARD COMM TTEE
APPROVE
SIGNATURE(S):
ACTION OF BOARD/AGENCY g APPROVED AS RECOMMENDED OTHER
VOTE OF SUPERVISORS/AGENCY MEMBERS
UNANIMOUS (ABSENT ) I HEREBY CERTIFY THAT THIS IS A TRUE AND
AYES: NOES: CORRECT COPY OF AN ACTION TAKEN AND
ABSENT: ABSTAIN: ENTERED ON THE MINUTES OF THE BOARD OF
SUPERVISORS/REDEVELOPMENT AGENCY ON THE
DATE SHOWN.
cc: County Administrator ATTESTED
County Counsel
Redevelopment Agency
PHIL BATCHELOR, CLERK OF THE BOARD
OF SUPERVISORS, COUNTY ADMINISTRATOR,
REDEVELOPMENT AGENCY SECRETARY AND
EXECUTIVE DIRECTOR
BY ���1.1X DEPUTY
Assembly Bill 1473 should be opposed for the following reasons:
1. It undermines the redevelopment process by reducing the funds available
for project implementation. After the 20 percent set-aside for housing
and required pass throughs this measure could reduce net revenues to the
Agency by percent.
2. It could specifically reduce tax increments in the Pleasant Hill BART
Project by 27 percent.
3. It may unreasonably lengthen all redevelopment projects thereby
lengthening the time for debt repayment and the return of full property
tax to local taxing agencies.
4. Redevelopment Law already provides a mechanism by which agencies (ie.
school districts) can be allocated tax increments to alleviate any
financial burden or detriment caused by the redevelopment project.
5. This bill gives virtually unilateral authority to school districts to
require a share of tax increment revenues.
6. If passed this bill could open the door to other special interests and
agencies to tap the tax increment funding mechanism.