County Opts Into Contentious Redevelopment Program

To keep projects countywide on track, Riverside County supervisors Tuesday approved an ordinance affirming the county's participation in a state program that conditionally permits redevelopment activity.

“This is the only way to go forward ... at this point,'' said Board of Supervisors Chairman Bob Buster. “There's a lot of important stuff left to do out there.''

Under provisions of the 2011-12 state budget, existing redevelopment
agencies will be abolished on Oct. 1. However, counties and cities that want to continue with projects tied to their RDAs are permitted to opt into the Alternative Voluntary Redevelopment Program.

Terms of admittance include requiring local governments to deposit redevelopment monies -- which are gleaned from property taxes -- into accounts that fund schools and special districts. Non-compliance puts cities and counties at risk of losing their ability to engage in redevelopment activities, which elected officials credit for stimulating job creation.

The new legislation is being challenged by the League of California Cities and the California Redevelopment Association.

are seeking to invalidate program requirements that participants fork over roughly $1.7 billion by January and make aggregate annual payments of $400 million to fund schools, fire districts and transit districts.

According to the suit, many of the 398 RDAs in operation statewide would fold under the cost burdens imposed by lawmakers and the governor.

The suit cites protections established by Proposition 22, approved by voters in November, which prohibits the state from raiding monies reserved for local government projects and services.

Riverside County's Redevelopment Agency, with about $100 million in annual revenue, is the state's seventh-largest. A total of 625 redevelopment projects have been completed in the county. There are 37 projects in the pipeline, including road improvements, parks, libraries, affordable housing complexes and public safety facilities, county officials say.

In March, California Controller John Chiang's office concluded a review of 18 redevelopment agencies, including Riverside County's, which found record-keeping inconsistencies and instances of “a lack of accountability and transparency.'' In some cases, funds strictly allocated for “low- and moderate-housing projects'' were applied to other uses.

Perris resident Gary Grant Tuesday blasted the county ordinance, saying RDAs divert public money unjustifiably and unfairly burden taxpayers with greater long-term indebtedness. –City News Service