City of Palm Springs

Redevelopment in California

Created after World War II to eliminate

blight in the State

Constitution amended in 1952 to allow

the collection of property tax increment

Became especially important to cities

after Prop 13 to fund public

improvements as well as undertake

economic development

Redevelopment in California

Now more than 400 agencies in

California

State began to shift tax increment to

schools in the 1990’s through ERAF

Eminent domain became controversial

after Kelo decision at Supreme Court

State took a total of $2.05 billion from

Agencies in 2009-10 and 2010-11

Community Redevelopment Agency

Palm Springs CRA created in 1973 with

CBD Project Area

City added nine more new areas

between 1983 and 1991

The 10 areas were merged into two

areas in 2000: one largely Indian land

and one mostly non-Indian land

Agencies also must set aside 20% of

increment for Low/Mod Housing

Community Facilities Funded with

Redevelopment

College of the Desert Campus (Land)

New Animal Shelter Construction

Plaza Theater

Frances Stevens Park/Palm Canyon

Theatre Renovation

Jackie Lee Houston Plaza

Part of Convention Center Debt Service

Visitor Center Improvements

COD Campus

New Animal Shelter

Plaza Theatre

Frances Stevens Park/PCT

Jackie Lee Houston Plaza

Convention Center

Visitor Center Improvements

Hotel and Hospitality Projects

Desert Shadows Inn Parcel Acquisition and Street Improvements

Casino Disposition & Development Agreement

Wyndham Land Assembly/Renaissance Renovation

Palm Mountain Resort

Mondrian Project

Hard Rock Project

Desert Shadows Inn

Casino DDA

Wyndham/Renaissance

Retail and Commercial Projects

Improving, Expanding BMW and

Mercedes Dealership

The Springs Shopping Center

Ralphs Shopping Center Street

Improvements

Stein Mart

Façade Improvement Program

BMW, Mercedes Expansion

The Springs Shopping Center

Ralphs Shopping Center

Stein Mart

Street Projects

South Palm Canyon Street Widening

Radio Road Street Improvements

Uptown Street Lighting Program

East Tahquitz Lighting Program

KFC Public Improvements

Mesquite Avenue Median and Road

Improvements

Downtown Infrastructure

Indian Canyon Drive Two-Way Traffic

Improvements

Palm Canyon Drive and Indian Canyon

Drive Public Improvements

Downtown Trash Enclosure and

Alleyway Enhancements

Desert Fashion Plaza Street

Improvements

Trash Enclosure/Walkway

DFP Street Improvements

Downtown Parking Lots

Catholic Church parking lot

Blue Coyote Lot

Vineyard parking lot

Terrace Eateries Lot

Las Casuelas Lot

Henry Frank Arcade Lot

Prairie Schooner

Plaza Mercado DDA/Parking Lot

Low/Mod/Other Housing

Vista Sunrise Apartments/Riverside County Family Care Center

Coyote Run Apartments (I & II)

Cottonwood/Chuckwalla Single Family Homes

Desert Highland Single Family Homebuyer Assistance and Infill Homes

Burnett DDA – K. Hovnanian Four Seasons

Vista Sunrise Apartments

Coyote Run

Desert Highland Infill Homes

Low/Mod Housing

Vista Serena/Vista Del Monte Senior

Housing

Sunrise Village Mobile Home Park

El Dorado Mobile Home Park

Sahara Mobile Home Park

Neighborhood Revitalization Program

Tahquitz Court Apartments

La Ventana Apartments

Sahara Mobilehome Park

Supreme Court Ruling Eliminates

Redevelopment

What does this mean and what are the next steps?

Upheld Assembly Bill 1X 26 (dissolution of redevelopment agencies), but overturned AB 1X 27 which allowed agencies to continue with voluntary payments to the State.

All agencies are dissolved as of February 1, 2012.

California Redevelopment Association is currently working with state legislators to introduce legislation to fix issues and save redevelopment. We assume worst case.

Successor Agency

The city or county that originally created

the former redevelopment agency

automatically becomes Successor Agency

A Successor Agency is:

Vested with any remaining authority, rights,

powers, duties and obligations formerly

vested to the redevelopment agency; and

Responsible for winding down the affairs of

the former redevelopment agency (in

conjunction with the Oversight Board)

What Does Successor Agency Do?

Successor Agency power over financial and planning issues in the community, including:

Making payments and performing obligations (per enforceable obligations)

Taking control of all redevelopment agency assets, properties, contracts, leases, books and records, buildings and equipment

Disposing of assets and properties of the former redevelopment agency

Transferring housing functions

Overseeing development of projects currently underway

What is a Successor Housing

Agency?

ABx1 26 provides City that originally created the former redevelopment agency may elect to retain affordable housing assets and functions; or

The succeeding housing entity must assume all rights, powers, duties and obligations of the former redevelopment agency's affordable housing functions.

The succeeding housing entity receives all former redevelopment agency housing assets, which may include the repayment of loans or other obligations (includes loans made for prior SERAF payments), but excluding cash deposits. These funds may be available for new affordable housing projects.

What Next?

SB 654. Bill tries to correct a number of

issues related to Housing, including

allowing Successor Housing Agency to

retain the fund balances in the Low-Mod

Housing Fund to allow projects to

continue.

Trying to get it adopted before

dissolution date of February 1, 2012.

Governor’s 2012-2013 Budget

"In accordance with the Court's order, RDAs will be dissolved on February 1, 2012. Revenues that would have been directed to the RDAs will be distributed to make "pass through" payments to local agencies that they would have received under prior law, and to successor agencies for retirement of the RDAs' debts and for limited administrative costs. The remaining revenues will be distributed as property taxes to cities, counties, school and community college districts, and special districts under existing law. The Budget reflects an estimate that approximately $1.05 billion in additional property tax revenue will be received by K-14 schools in 2011-12, which will offset the state's Proposition 98 General Fund obligation. Additional property tax revenues are estimated at $340 million for counties, $220 million for cities, and $170 million for special districts. These amounts are expected to grow as property values increase and debts are retired. Additional revenues will also be distributed in the next several years as RDA assets are monetized."