BILL NUMBER: AB 2549 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 1, 2014
INTRODUCED BY Assembly Member Ridley-Thomas
FEBRUARY 21, 2014
An act to add and repeal Section 53083.2 to
of the Government Code, relating to
redevelopment.
LEGISLATIVE COUNSEL'S DIGEST
AB 2549, as amended, 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 , on or before
April 1, 2015, to organize an independent local
agency commission, composed of the city manager, as an
ex officio member, and 7 specified members appointed by the Milpitas
City Council, 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 repeal these provisions on January 1, 2017.
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 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, ensure the greatest amount of
citizen participation to increase economic activity in the McCarthy
Ranch area of the city near the Newby Island landfill in order to
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 (a) On
or before April 1, 2015, the City of Milpitas may organize an
independent local agency commission 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. increase economic
activity in the McCarthy Ranch area of the City of Milpitas near the
Newby Island landfill.
(b) The commission shall be composed of seven people appointed by
the Milpitas City Council, as follows:
(1) One member of the business community who is also a member of
the Milpitas Chamber of Commerce.
(2) One employee of the City of Milpitas Fire Department.
(3) One employee of the City of Milpitas Police Department.
(4) One member of a local union that is unaffiliated with public
employee unions representing workers for the City of Milpitas.
(5) One owner of real property within the McCarthy Ranch area of
the City of Milpitas near the Newby Island landfill.
(6) Two residents of the City of Milpitas.
(c) The city manager of the City of Milpitas shall be an ex
officio member of the commission and report on the commission's
activities to the Milpitas City Council.
(d) The commission shall elect its own chairperson.
(e) Within one year of the City of Milpitas forming the
commission, the commission's authority shall cease.
(f) This section shall remain in effect only until January 1,
2017, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2017, deletes or extends
that date.
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.