BILL ANALYSIS �
SB 1335
SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
Senator S. Joseph Simitian, Chairman
2011-2012 Regular Session
BILL NO: SB 1335
AUTHOR: Pavley
AMENDED: March 29, 2012
FISCAL: Yes HEARING DATE: April 16, 2012
URGENCY: No CONSULTANT:
Rachel Machi Wagoner
SUBJECT : REDEVELOPMENT: BROWNFIELD SITES
SUMMARY :
Existing law dissolved redevelopment agencies (RDAs) and community
development agencies (CDAs), as of February 1, 2012, and provides
for the designation of successor agency, as defined, to resolve the
final matters of the agencies and to dispose of assets and
properties in accordance with certain procedures.
This bill authorizes successor agencies with approval of their
oversight board, to retain the RDA land that is a brownfield site
for the purpose of remediating the contamination. Upon completion
of the remediation the site will be sold consistent with the
current procedures for disposal of RDA properties.
COMMENTS :
1) Purpose of Bill . AB 1X 26 (Blumenfield) Chapter 5, Statutes of
2011, requires successor agencies to expeditiously dispose of
assets and properties of former RDAs. However, among those
properties exist many brownfield sites that will either be
difficult for successor agencies to sell or to maximize the
value in the sale due to the actual or perceived contamination
of the site.
According to the author, prior to their dissolution, RDAs lead
the way in brownfield remediation. RDAs used Tax Increment
Financing in combination with Polanco Liability Protection to
remediate and develop brownfields throughout California. With
the RDA wind down process set forth in AB 1X 26, these
activities are now subject to significant uncertainties and
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could be potentially discontinued.
SB 1335 would simply authorize successor agencies with approval
of their oversight board, to retain properties that are
considered brownfields for the purpose of remediating the
contamination in order to maximize their value. The successor
agencies would use available financing, funds obtained from a
responsible party, existing state or federal grants or any other
funds at the disposal of the successor agency.
2) The Polanco Redevelopment Act . AB 3193 (Polanco) Chapter 1113,
Statutes of 1990, part of the Community Redevelopment Act, was
enacted to assist redevelopment agencies in responding to
brownfield properties in their redevelopment areas. It
prescribes processes for redevelopment agencies to follow when
cleaning up a hazardous substance release in a redevelopment
project area. It also provides specified immunity from
liability for sites cleaned up under a cleanup plan approved by
DTSC or a Regional Board.
3) Related legislation . AB 1235 (Hernandez) applies all authority,
rights, powers, duties, obligations, and protections afforded to
a redevelopment agency under the Polanco Redevelopment Act to a
successor agency, as defined, for any property that was within a
redevelopment project of a redevelopment agency that has been
dissolved by an act of the Legislature.
4) Amendment needed . Clarification is needed to specify that the
"land retained by the former redevelopment agency" applies to
the contaminated parcel as well as surrounding or nearby related
parcels that are considered part of the site for the purpose of
financing the remediation and redevelopment of the site.
5) Referral to Governance and Finance Committee . If this measure
is approved by this committee, the do pass motion must include
the action to re-refer the bill to the Senate Governance and
Finance Committee.
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SOURCE : Senator Pavley
SUPPORT : Center for Creative Land Recycling
City of Brea, City Manager
Sierra Club California
OPPOSITION : None on file