Amended in Assembly April 24, 2014

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 and repeal Section 53083.2 of the Government Code, relating to begin delete redevelopment end delete begin insert local government end insert .

LEGISLATIVE COUNSEL’S DIGEST

AB 2549, as amended, Ridley-Thomas. begin delete Redevelopment: end delete City of Milpitas.

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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.

end delete begin insert

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.

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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 begin delete the consequences of the dissolution of redevelopment on end delete begin insert issues related to end insert 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:

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(a) The dissolution of redevelopment by the state has been
devastating in the City of Milpitas (city) and to its citizens.

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(b) As a result of the dissolution of redevelopment, the city has
lost $39 million in annual local tax revenues.

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(c) The dissolution of redevelopment has

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begin insert (a) end insert begin insert   end insert begin insert Recent losses of local funding have end insert degraded public safety
in the begin delete city end delete begin insert City of Milpitas (city) end insert 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.

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(d) The dissolution of redevelopment

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begin insert (b) end insert begin insert   end insert begin insert A lack of economic development tools end insert has stopped investment
in previously approved critical infrastructure in the city. Two
hundred twenty million dollars worth of road, water, and sewer
begin delete improvements located within the redevelopment project area, end delete
begin insert improvements, end insert 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. begin delete With the elimination of redevelopment, the end delete begin insert The end insert city’s
annual shortfall to maintain its Metropolitan Transit
Commission-mandated Pavement Condition Index goal of 70 is
$4 million per year.

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(e) The dissolution of redevelopment

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begin insert (c) end insert begin insert   end insert begin insert A lack of economic development tools end insert 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.

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(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.

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(g)

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begin insert (d) end insert  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 begin delete the consequences of the dissolution of redevelopment on end delete
begin insert issues related to end insert 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.