2011-005-Opposition To Abolish Redevelopment Agencies In CARESOLUTION 2011 -005
RESOLUTION OF THE TOWN COUNCIL /REDEVELOPMENT AGENCY
OF THE TOWN OF LOS GATOS IN OPPOSITION TO THE
ADMINISTRATION'S PROPOSAL TO ABOLISH REDEVELOPMENT AGENCIES IN
CALIFORNIA
WHEREAS, as part of its 2011 -12 budget proposal, the Governor has proposed
permanently abolishing California's more than 400 local redevelopment agencies; and
WHEREAS, this proposal represents more of the same misguided and illegal State budget
raids of local government funds that voters have repeatedly sought to end, most recently in
November 2010 when an overwhelming 61 % of voters elected to stop State raids of local
government funds, including redevelopment funds; and
WHEREAS, this proposal will bring very little financial benefit to the State.
According to the State Controller's Office, redevelopment agencies have more than $87 billion in
bond and other contractual obligations that legally must be repaid before revenues are available
to any other purpose. In fact, according to the State Department of Finance's own budget
documents, there will be zero State savings in out years from shutting down redevelopment; and
WHEREAS, this proposal will destroy local economic development, including hundreds
of thousands of jobs and billions of dollars in local economic activity throughout California;
and
WHEREAS, in Los Gatos, abolishing redevelopment will severely limit the Town's
ability to make critical street and other public infrastructure improvements and to assist local
businesses in the Downtown Project Area. The Downtown business district generates one -
fifth of the Town's sales tax revenue, which funds local services including public safety,
libraries and parks; and
WHEREAS, throughout California, redevelopment activities support 304,000 jobs
annually, including 170,600 construction jobs, contribute over $40 billion annually to
California's economy in the generation of goods and services, and generate more than $2 billion
in state and local taxes in a typical year; and
WHEREAS, eliminating redevelopment will take away one of the few tools local
governments have to comply with state requirements to plan for more compact urban
development supported by transit- oriented development, housing, jobs and infrastructure; and
WHEREAS, eliminating redevelopment will destroy the development of affordable
housing in California. Redevelopment agencies are the second largest funder of affordable housing,
behind only the federal government, responsible for over 98,000 units of affordable housing since
1993. In Los Gatos, redevelopment is the largest source of funds for building affordable
housing; and
WHEREAS, shutting down redevelopment agencies is a violation of multiple State and
Federal constitutional provisions.
THEREFORE, BE IT RESOLVED THAT the Town Council /Redevelopment Agency
hereby formally opposes the Administration's proposal to abolish redevelopment in California.
THEREFORE, BE IT FURTHER RESOLVED, that Los Gatos authorizes the Council
and Town staff to communicate its opposition to this proposal to the Governor, the
Legislature, business groups, and citizens.
PASSED AND ADOPTED at a regular meeting of the Town Council /Redevelopment
Agency of the Town of Los Gatos held on the 7 th day of February, 2011 by the following vote:
AYES: Steven Leonardis, Steve Rice, Barbara Spector, and Mayor Joe Pirzynski
NAYS:
ABSENT: Diane McNutt
ABSTAIN:
SIGNED: -
YOR/CHAI OF THE TOWN OF
LOS GATOS
LOS GATOS, CALIFORNIA
AE ST:
ADMINISTRATOR/SECRETARY OF THE REDEVELOPMENT AGENCY
OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
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