BILL NUMBER: AB 2549	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Ridley-Thomas

                        FEBRUARY 21, 2014

   An act to add Section 53083.2 to the Government Code, relating to
redevelopment.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2549, as introduced, Ridley-Thomas. Redevelopment: City of
Milpitas.
   Existing law dissolved redevelopment agencies and community
development agencies as of February 1, 2012, and provides for the
designation of successor agencies, as defined. Existing law requires
successor agencies to wind down the affairs of the dissolved
redevelopment agencies and to, among other things, make payments due
for enforceable obligations, as defined, perform obligations required
pursuant to any enforceable obligation, dispose of all the assets of
the former redevelopment agency, and remit unencumbered balances of
redevelopment agency funds, including housing funds, to the county
auditor-controller.
   This bill would authorize the City of Milpitas to organize an
independent local agency to investigate and study the consequences of
the dissolution of redevelopment on employment, revenues, and
economic activity in order to identify and recommend ways to raise
revenues for specified purposes.
   This bill would make legislative findings and declarations as to
the necessity of a special statute for the City of Milpitas.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) The dissolution of redevelopment by the state has been
devastating in the City of Milpitas (city) and to its citizens.
   (b) As a result of the dissolution of redevelopment, the city has
lost $39 million in annual local tax revenues.
   (c) The dissolution of redevelopment has degraded public safety in
the city as the city has cut employment. Since the 2011-12 fiscal
year, the city has laid off 110 employees, including 12 firefighters,
and has been unable to fill 147 other positions that would otherwise
had been filled, including 13 police officer positions.
   (d) The dissolution of redevelopment has stopped investment in
previously approved critical infrastructure in the city. $220 two
hundred twenty million dollars worth of road, water, and sewer
improvements located within the redevelopment project area, which had
been approved in the capital improvement plan of the city, cannot be
constructed. Other projects, including infrastructure projects have
been delayed due to significant funding shortfalls in the city's
general fund to maintain streets. With the elimination of
redevelopment, the city's annual shortfall to maintain its
Metropolitan Transit Commission-mandated Pavement Condition Index
goal of 70 is $4 million per year.
   (e) The dissolution of redevelopment has stopped previously
approved development projects in the city, including a 120-room hotel
and a low- and moderate-income senior housing project. With respect
to the latter project, the project developer had agreed to employ 100
full-time medical and caregiver positions. Both projects had
completed permits and land use reviews, including reviews under the
California Environmental Quality Act.
   (f) The dissolution of redevelopment has spurred litigation
between the city, which was the second largest redevelopment agency
within the County of Santa Clara, as the state and county have sued
the city for $55 million.
   (g) The city desires to settle its litigation with the state and
the county, find new revenue sources to replace the funds, restore
losses of firefighters and police officers, maintain and upgrade
critical infrastructure, and generate employment and economic
activity through previously approved private investment.
  SEC. 2.  Section 53083.2 is added to the Government Code, to read:
   53083.2.  The City of Milpitas may organize an independent local
agency to investigate and study the consequences of the dissolution
of redevelopment on employment, revenues, and economic activity in
order to identify and recommend ways to raise revenues to increase
city staff to adequate levels, to invest in infrastructure and
development projects, and to settle claims against the city by the
state and the County of Santa Clara.
  SEC. 3.  The Legislature finds and declares that a special law is
necessary and that a general law cannot be made applicable within the
meaning of Section 16 of Article IV of the California Constitution
because of the unique circumstances in the City of Milpitas, where
parcels on the west side of Interstate 880 and to the east of Coyote
Creek in the McCarthy Ranch area of Milpitas near the Newby Island
landfill, the San Francisco Bay area, and the regional water
pollution control plant face particular challenges to economic
development as a result of their restrictive location.