Amended in Assembly September 6, 2013

Amended in Assembly September 3, 2013

Amended in Assembly August 21, 2013

Amended in Assembly August 5, 2013

Amended in Senate May 8, 2013

Amended in Senate April 9, 2013

Amended in Senate April 1, 2013

Senate BillNo. 470


Introduced by Senator Wright

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(Coauthor: Assembly Member Lowenthal)

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February 21, 2013


An act to add Part 4 (commencing with Section 52200) to Division 1 of Title 5 of the Governmentbegin delete Code, and to add Section 34176.6 to the Health and Safetyend delete Code, relating to community development.

LEGISLATIVE COUNSEL’S DIGEST

SB 470, as amended, Wright. Community development: economic opportunity.

Existing law generally regulates the power of cities, counties, and cities and counties.

This bill would state the intent of the Legislature to promote economic development on a local level so that communities can enact local strategies to increase jobs, create economic opportunity, and generate tax revenue for all levels of government. The bill would define economic opportunity to include certain types of agreements, purposes, and projects, and declare 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.

The bill would state that the creation of economic opportunity and the provisions for appropriate continuing land use and construction policies with respect to property acquired, in whole or in part, for economic opportunity constitute public uses and purposes for which public money may be advanced or expended and private property acquired. The bill would provide that before certain returned city, county, or city and county property is sold or leased for development, the sale or lease shall first be approved by the legislative body, as specified. The bill would authorize a city, county, or city and county to establish a program under which it loans funds to owners or tenants for the purpose of rehabilitating commercial buildings or structures and to assist with the financing of facilities or capital equipment as part of an agreement that provides for the development or rehabilitation of property that will be used for industrial or manufacturing purposes, as specified.

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Existing law, the Polanco Redevelopment Act, authorizes a former redevelopment agency to take any action that the agency determines is necessary, consistent with other state and federal laws, to remedy or remove a release of hazardous substances on, under, or from a project area, subject to specified conditions. Existing law requires agencies to request cleanup guidelines from the department or the California regional water quality control board before taking action to remedy or remove a release, immunizes an agency that remedies or removes a hazardous substance release from liability under specified state laws, and authorizes the recovery of cleanup and remedial costs from the liable party.

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This bill would authorize a city, county, or city and county to utilize the Polanco Redevelopment Act with respect to property that is within the boundaries of a former redevelopment agency.

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Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

Part 4 (commencing with Section 52200) is added
2to Division 1 of Title 5 of the Government Code, to read:

 

P3    1PART 4.  Economic Opportunity

2

2 

3Chapter  1. General Provisions
4

 

5

52200.  

It is the intent of the Legislature to do all of the
6following:

7(a) Promote economic development on a local level so that
8communities can enact local strategies to increase jobs, create
9economic opportunity, and generate tax revenue for all levels of
10government.

11(b) Give local governments tools, at no cost to the state, that
12allow local governments to use their funds in a manner that
13promotes economic opportunity.

14(c) With the loss of redevelopment funds, cities, counties, and
15cities and counties need to continue certain powers afforded to
16redevelopment agencies that were critical to economic
17development, yet do not have an impact on schools and the state
18budget.

19

52200.2.  

As used in this part “economic opportunity” means
20any of the following:

21(a) Development agreements or other agreements that create,
22retain, or expand new jobs, in which the legislative body finds that
23the agreement will create or retain at least one full-time equivalent,
24permanent job for every thirty-five thousand dollars ($35,000) of
25city, county, or city and county investment in the project after full
26capacity and implementation.

27(b) Development agreements that increase property tax revenues
28to all property tax collecting entities, in which the legislative body
29finds that the agreement will result in an increase of at least 15
30percent of total property tax resulting from the project at full
31implementation when compared to the year prior to the property
32being acquired by the government entity.

33(c) Creation of affordable housing, if a demonstrated affordable
34housing need exists in the community, as defined in the approved
35housing element or regional housing needs assessment.

36(d) Projects that meet the goals set forth in Chapter 728 of the
37Statutes of 2008 and have been included in an adopted sustainable
38communities strategy or alternative planning strategy or a project
39that specifically implements the goals of those adopted plans.

P4    1(e) Transit priority projects, as defined in Section 21155 of the
2Public Resources Code.

3

52200.4.  

It is declared to be the policy of the state:

4(a) To protect and promote the sound development of economic
5opportunity in cities and counties and the general welfare of the
6inhabitants of those communities through the employment of all
7appropriate means.

8(b) That whenever the creation of economic opportunity in cities
9and counties cannot be accomplished by private enterprise alone,
10without public participation and assistance in the acquisition of
11land, in planning and in the financing of land assembly, in the
12work of clearance, and in the making of improvements necessary
13therefor, it is in the public interest to advance or expend public
14funds for these purposes, and to provide a means by which
15 economic opportunity can be created.

16(c) That the creation of economic opportunity and the provisions
17for appropriate continuing land use and construction policies with
18respect to property acquired, in whole or in part, for economic
19opportunity constitute public uses and purposes for which public
20money may be advanced or expended and private property
21acquired, and are governmental functions of state concern in the
22interest of health, safety, and welfare of the people of the state and
23cities and counties.

24(d) That the necessity in the public interest for the provisions
25of this part is declared to be a matter of legislative determination.

26

52200.6.  

This chapter shall not be interpreted to authorize the
27use of eminent domain for economic development purposes.

28 

29Chapter  2. Sales and Leases
30

 

31

52201.  

(a) (1) Before any city, county, or city and county
32property that is returned to the city, county, or city and county per
33the long-range property management plan, pursuant to Section
3434191.5 of the Health and Safety Code, is sold or leased for
35economic development purposes, the sale or lease shall first be
36approved by the legislative body by resolution after public hearing.
37Notice of the time and place of the hearing shall be published in
38a newspaper of general circulation in the community at least once
39per week for at least two successive weeks, as specified in Section
406066, prior to the hearing.

P5    1(2) The city, county, or city and county shall make available,
2for public inspection and copying at a cost not to exceed the cost
3of duplication, a report no later than the time of publication of the
4first notice of the hearing mandated by this section. This report
5shall contain both of the following:

6(A) A copy of the proposed sale or lease.

7(B) A summary that describes and specifies all of the following:

8(i) The cost of the agreement to the city, county, or city and
9county, including land acquisition costs, clearance costs, relocation
10costs, the costs of any improvements to be provided by the city,
11county, or city and county, plus the expected interest on any loans
12or bonds to finance the agreements.

13(ii) The estimated value of the interest to be conveyed or leased,
14determined at the highest and best uses permitted under the general
15plan or zoning.

16(iii) The estimated value of the interest to be conveyed or leased,
17determined at the use and with the conditions, covenants, and
18development costs required by the sale or lease. The purchase price
19or present value of the lease payments which the lessor will be
20required to make during the term of the lease. If the sale price or
21total rental amount is less than the fair market value of the interest
22to be conveyed or leased, determined at the highest and best use,
23then the city, county, or city and county shall provide as part of
24the summary an explanation of the reasons for the difference.

25(iv) An explanation of why the sale or lease of the property will
26assist in the creation of economic opportunity, with reference to
27all supporting facts and materials relied upon in making this
28explanation.

29(b) The resolution approving the lease or sale shall be adopted
30by a majority vote unless the legislative body has provided by
31ordinance for a two-thirds vote for that purpose and shall contain
32a finding that the sale or lease of the property will assist in the
33creation of economic opportunity. The resolution shall also contain
34one of the following findings:

35(1) The consideration is not less than the fair market value at
36its highest and best use.

37(2) The consideration is not less than the fair reuse value at the
38use and with the covenants and conditions and development costs
39authorized by the sale or lease.

P6    1(c) The provisions of this section are an alternative to any other
2authority granted by law to cities to dispose of city-owned property.

3

52202.  

A city, county, or city and county may establish a
4program under which it loans funds to owners or tenants for the
5purpose of rehabilitating commercial buildings or structures.

6

52203.  

(a) As part of an agreement that provides for the
7development or rehabilitation of property that will be used for
8industrial or manufacturing purposes, a city, county, or city and
9county may assist with the financing of facilities or capital
10equipment, including, but not necessarily limited to, pollution
11control devices.

12(b) Prior to entering into an agreement for a development that
13will be assisted pursuant to this section, a city, county, or city and
14county shall find, after a public hearing, that the assistance is
15necessary for the economic feasibility of the development and that
16the assistance cannot be obtained on economically feasible terms
17in the private market.

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SEC. 2.  

Section 34176.6 is added to the Health and Safety
19Code
, to read:

20

34176.6.  

Notwithstanding any other law, a city, county, or city
21and county may utilize the Polanco Redevelopment Act (Article
2212.5 (commencing with Section 33459) of Part 1 of Division 24)
23with respect to property that is located within the boundaries of a
24former redevelopment agency.

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