Cities Show Solidarity in Fight For Redevelopment Funds

Government leaders from across Southern California gathered in Long Beach Thursday in an urban core rebuilt on redevelopment funding to show their support for the lawsuit filed seeking to overturn the state budget bills, AB 1X 26 and 27. According to opponents, the bills would severely impact local job-creating redevelopment projects and hurt local economies.

Thursday’s press conference was a monster photo opportunity to visually show wide local government and business support for a lawsuit filed Monday.

The lawsuit challenges the legality of the move on the grounds that the legislation violates Proposition 22, the constitutional amendment that “prohibits the state from borrowing or taking funds used for...redevelopment, or local government projects and services.”

The suit was filed by the California League of Cities, the California Redevelopment Association and the cities of San Jose and Union City. Glendora city Mayor Doug Tessitor, City Manager Chris Jeffers and Planning Director Jeff Kugel, as well as dozens of mayors and city leaders, arrived at the steps of the Long Beach Police Headquarters to show the public that they fully back the lawsuit.

The main speaker at the press conference was Long Beach Vice Mayor, Suja Lowenthal.  She explained that the bills were passed as part of the state budget last month.  AB 1X 26 eliminates redevelopment agencies and AB 1X 27 allows agencies to continue to exist but by paying a “ransom” fee of $1.7 billion the first year and $400 million each subsequent year.  Should the City of Long Beach choose to accept the “ransom,” it would have to pay $34 million.  

“This is an attempt to take our destiny out of our hands.  The bills are unconstitutional--it’s plain and simple,” Lowenthal said.

“What part of ‘no’ do politicians not understand?” Signal Hill Mayor Larry Forester asked the audience.  “They are destroying our communities--eliminating the best tool we have,” he added.

Lowenthal was asked how schools will be affected if the state is short $1.7 billion because of the bills.  Having been on the board of Long Beach Unified for several years, Lowenthal is confident that “schools will be just fine.” 

Glendora city officials have always contended that the elimination of redevelopment agencies would be devastating to the city.

According to Finance Director Josh Betta, 10 of the 12 retail stores contributing to 50 percent of the city’s sales tax collections are located in the Glendora Marketplace, an area developed through redevelopment funds in 2002.

Following the development of the Marketplace, a significant spike of more than $2 million worth of sales tax revenue was generated from 2002 to 2007, according city figures.

“It good to see representatives of so many cities coming together to stick up and support control of local taxpayer dollars and support our California constitution,” said Tessitor, who has been . “The voters came out and voted in favor of Proposition 22. It’s not ambiguous at all. It’s very clear and direct.”

Although Tessitor feels the League has a very strong case in the lawsuit, he expected a tough court battle.

“When you see Casey Anthony getting acquitted, it tells you anything can happen in our courts,” said Tessitor. “A clear reading of Prop. 22 tells you the state can’t do what they’re trying to do. I understand the English language and it should be very clear that our chances our excellent.”

“But then again,” added Tessitor. “I don’t speak ‘Lawyer.’”