WHAT IS REDEVELOPMENT? (Click here to download Redevelopment Area Map)
California has more than 386 active redevelopment agencies in communities throughout the state. While they are probably the least understood local government entities, redevelopment agencies represent the most important tool a community has to help breathe new life into areas in need of revitalization, economic development, and new opportunity. Redevelopment activities create jobs and expand opportunities for business, provide affordable housing and homeownership opportunities for families most in need, improve infrastructure, and lead cleanup of environmentally-threatened and rundown areas. Cities such as Brea, Camarillo, Carlsbad, Irvine, Napa, San Juan Capistrano, and Thousand Oaks have active and successful redevelopment agencies.
As examples of what redevelopment agencies can do, the City of Brea created sustainable lofts where San Diego’s redevelopment agency was able to create a more lively, safe downtown and Gas Lamp district with the inclusion of a new ballpark. The City of South Lake Tahoe was able to develop their Heavenly Village Project which not only brought quality businesses to their community but helped preserve adjacent environmentally sensitive areas, expand open space, and open up new view corridors. The City of Agoura Hills is utilizing some of its redevelopment funds to expand the Reyes Adobe Road overcrossing of the U.S. 101 and the creation of the Agoura Village Specific Plan which promotes sustainable and quality developments while limiting the amount of development that can occur while preserving open space.
* Redevelopment serves as the catalyst for community revitalization projects that the private sector otherwise would not be involved.
* Redevelopment creates more local control and is in the best position to identify exactly what a community needs and to work with private investors on local projects that meet those needs.
* Every $1 of redevelopment agency spending generates nearly $14 in total economic activity.
* $1.8 billion. State and local taxes generated through redevelopment construction activities over the past year.
HOW DOES REDEVELOPMENT WORK?
When redevelopment agencies make improvements to deteriorated areas, property values within those areas rise, resulting in an increase in property tax revenues. State law allows redevelopment agencies to use a portion of this increase to repay debt they must incur in order to rehabilitate or stimulate the area. Redevelopment agencies also utilizes these funds to acquire property, build public improvements and infrastructure, clean-up contaminated soil and do other things necessary to improve the conditions of the property.
Redevelopment’s commitment of funds attracts private investment and creates a positive chain reaction where the ultimate economic output is greater than the original public investment.
HOW DOES REDEVELOPMENT FINANCING WORK?
Redevelopment improvements are paid for primarily through "tax increment'" which is a redistribution of property taxes. Here's how it works:
Let's say you own a property (within the redevelopment agency) and it is assessed at $100,000. Your property tax (at 1% of the assessed value) is $1,000 each year. That $1,000 gets divided between the City and several other public agencies. A majority of your tax dollar is spread throughout the entire County.