BILL NUMBER: AB 2549 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 24, 2014
AMENDED IN ASSEMBLY APRIL 1, 2014
INTRODUCED BY Assembly Member Ridley-Thomas
FEBRUARY 21, 2014
An act to add and repeal Section 53083.2 of the Government Code,
relating to redevelopment local government
.
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.
Existing law declares that it is the policy of the state to
protect and promote the sound development of economic opportunity in
cities and counties, and the general welfare of the inhabitants of
those communities through the employment of all appropriate means.
Existing law requires each local agency, as defined to include a
city, to provide specified information to the public before approving
an economic development subsidy, as defined, within its
jurisdiction, and to review, hold hearings, and report on those
subsidies at specified intervals.
This bill would authorize the City of Milpitas, on or before April
1, 2015, to organize an independent local 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
issues related to 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
(a) Recent losses of local funding have
degraded public safety in the city
City of Milpitas (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
(b) A lack of economic development
tools has stopped investment in previously approved critical
infrastructure in the city. Two hundred twenty million dollars worth
of road, water, and sewer improvements located within the
redevelopment project area, improvements, 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 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
(c) A lack of economic development
tools 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)
(d) The city desires to 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. (a) On or before April 1, 2015, the City of Milpitas may
organize an independent local commission to investigate and study
the consequences of the dissolution of redevelopment on
issues related to 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 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.