Amended in Assembly April 1, 2014

California Legislature—2013–14 Regular Session

Assembly Bill No. 2549

Introduced by Assembly Member Ridley-Thomas

February 21, 2014

An act to add begin insert and repeal end insert Section 53083.2 begin delete to end delete begin insert of end insert 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 begin insert , on or before April 1, 2015, end insert to organize an independent local begin delete agency end delete begin insert commission, composed of the city manager, as an ex officio member, and 7 specified members appointed by the Milpitas City Council, end insert 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.

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This bill would repeal these provisions on January 1, 2017.

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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. begin delete $220 two end delete
begin insert Two end insert 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 begin delete settle its litigation with the state and the
county, end delete begin insert 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 end insert 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.  

begin delete The end delete begin insert (a) end insert begin insert   end insert begin insert On or before April 1, 2015, the end insert City of
Milpitas may organize an independent local begin delete agency end delete begin insert commission end insert
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 begin delete settle claims against the city by
the state and the County of Santa Clara. end delete begin insert increase economic activity
in the McCarthy Ranch area of the City of Milpitas near the Newby
Island landfill. end insert

begin insert

(b) The commission shall be composed of seven people
appointed by the Milpitas City Council, as follows:

end insert begin insert

(1) One member of the business community who is also a
member of the Milpitas Chamber of Commerce.

end insert begin insert

(2) One employee of the City of Milpitas Fire Department.

end insert begin insert

(3) One employee of the City of Milpitas Police Department.

end insert begin insert

(4) One member of a local union that is unaffiliated with public
employee unions representing workers for the City of Milpitas.

end insert begin insert

(5) One owner of real property within the McCarthy Ranch area
of the City of Milpitas near the Newby Island landfill.

end insert begin insert

(6) Two residents of the City of Milpitas.

end insert begin insert

(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.

end insert begin insert

(d) The commission shall elect its own chairperson.

end insert begin insert

(e) Within one year of the City of Milpitas forming the
commission, the commission’s authority shall cease.

end insert begin insert

(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.

end insert

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.