Mayor Lee’s Statement on California Redevelopment Elimination With No Option to Buy Back
Mayor Edwin M. Lee today issued the following statement on the California Supreme Court’s split decision that upheld the constitutionality of Assembly Bill 1X 26, which eliminates California redevelopment agencies, and ruled unconstitutional Assembly Bill 1X 27, which would have allowed redevelopment agencies to continue to function by making payments to the State of California:
“Today’s ruling by the California Supreme Court to eliminate redevelopment agencies is disappointing. In San Francisco, redevelopment has not only played a critical role in creating jobs, transforming disadvantaged communities and delivering affordable housing, but it has spurred economic growth for our entire City at a time when we needed it most. Time and time again, San Francisco has demonstrated that when redevelopment is used to its fullest potential, it can deliver results such as Yerba Buena Gardens and Mission Bay.
It’s unlikely that the Legislature intended to dissolve redevelopment agencies without an option to maintain true job creation, infrastructure and affordable housing projects. Under AB 1X 26, San Francisco’s major infrastructure and affordable housing projects are considered enforceable obligations. That means that major projects well underway such as the Mission Bay, Bayview Hunters Point Shipyard and Treasure Island can keep going. At risk, however, is continued future progress on developing affordable housing, revitalizing blighted neighborhoods and generating the resources to fund urban infill development and infrastructure. We call on the State to find a legislative solution to this problem.
And while we are committed to working with the State, we have already started to look at local solutions and alternatives. Abandoning the job creation, economic development, and community benefits that redevelopment has provided San Francisco for decades is simply not an option.”
Assembly Bills 1X 26 and 1X 27, companion bills to Governor Brown’s 2011-2012 budget, allowed California cities with redevelopment agencies to keep the entity by opting in to a state payment plan versus outright elimination. As a result of today’s decision, the State of California will be the beneficiary of $1.7 billion in the first year of implementation of this plan. The California Redevelopment Association and the California League of Cities among others challenged the constitutionality of the measures. With the Supreme Court ruling on AB 1X 26, all redevelopment agencies in California will be dissolved with their assets and existing obligations assumed by individual cities. The California Supreme Court struck down AB 1X 27 based on violations of various aspects of the State’s Constitution including Proposition 22, a 2010 voter approved initiative that prohibits State diversion of local tax revenues.
“Today’s ruling by the California Supreme Court to eliminate redevelopment agencies is disappointing. In San Francisco, redevelopment has not only played a critical role in creating jobs, transforming disadvantaged communities and delivering affordable housing, but it has spurred economic growth for our entire City at a time when we needed it most. Time and time again, San Francisco has demonstrated that when redevelopment is used to its fullest potential, it can deliver results such as Yerba Buena Gardens and Mission Bay.
It’s unlikely that the Legislature intended to dissolve redevelopment agencies without an option to maintain true job creation, infrastructure and affordable housing projects. Under AB 1X 26, San Francisco’s major infrastructure and affordable housing projects are considered enforceable obligations. That means that major projects well underway such as the Mission Bay, Bayview Hunters Point Shipyard and Treasure Island can keep going. At risk, however, is continued future progress on developing affordable housing, revitalizing blighted neighborhoods and generating the resources to fund urban infill development and infrastructure. We call on the State to find a legislative solution to this problem.
And while we are committed to working with the State, we have already started to look at local solutions and alternatives. Abandoning the job creation, economic development, and community benefits that redevelopment has provided San Francisco for decades is simply not an option.”
Assembly Bills 1X 26 and 1X 27, companion bills to Governor Brown’s 2011-2012 budget, allowed California cities with redevelopment agencies to keep the entity by opting in to a state payment plan versus outright elimination. As a result of today’s decision, the State of California will be the beneficiary of $1.7 billion in the first year of implementation of this plan. The California Redevelopment Association and the California League of Cities among others challenged the constitutionality of the measures. With the Supreme Court ruling on AB 1X 26, all redevelopment agencies in California will be dissolved with their assets and existing obligations assumed by individual cities. The California Supreme Court struck down AB 1X 27 based on violations of various aspects of the State’s Constitution including Proposition 22, a 2010 voter approved initiative that prohibits State diversion of local tax revenues.