Mayor Roccucci Weighs in on Why We Can’t Afford to Lose Redevelopment

By Mayor Pauline Roccucci, City of Roseville

We expected change. Given the dire straits of the state budget, cities like ours knew there would be give-and-take in the way tax revenues are used throughout the state. But it’s turned out to be all “take.”  The State Legislature’s vote to eliminate Redevelopment Agencies throughout the state has significant and immediate effects on cities like Roseville. Those who voted to eliminate Redevelopment Agencies use broadstroke generalizations to justify their vote. But the facts about what we’ve accomplished demonstrate how crucial Redevelopment is to our community.

Supports Revitalization
The Historic Old Town area of Roseville was notably the most blighted area in the community. We used $3 million of Redevelopment Agency funds to help fund the $13 million Historic District Streetscape/Infrastructure project, completed in 2009, including undergrounding utilities and improving aging infrastructure. Its success demonstrates the potential of redevelopment investment. Following completion of the project, 11 new businesses have opened in this area alone, employing more than 65 people and generating new sales tax for the City.

Supports Public Safety
In April of 2010, the Agency completed the construction of a $10 million dollar streetscape and infrastructure project on Riverside Avenue. With completion of this project, the area is now capable of supporting fire sprinkler requirements and meets fire hydrant standards. This also allows for buildings over 3,600 square feet to be built in that area. The installation of 16 new fire hydrants has resulted in a safer neighborhood

Supports Housing
The Redevelopment Agency is currently working on two mixed-use projects in the area that would provide approximately 160 new affordable housing units and approximately 6,000 square feet of new commercial space. Upon securing a building permit, these projects will be the first new buildings constructed in the area since 1960 and provide 340 new jobs.

Supports Schools
The Agency currently has agreements in place with the 5 school districts within the Redevelopment Plan Area. Annually the Agency provides 8 percent of its revenue as a passthrough to these schools. In Fiscal Year 10-11 this amounted to approximately $490,000. Over the past 11 years the Agency has provided $4.5 million in total pass-through payments to local schools; in addition to funds received from the state.

The development of affordable housing projects funded by the Agency also produces revenues for the schools. The mixed-use projects mentioned above will generate approximately $312,000 in school fees once a building permit is issued.

What was gained
To understand these impacts, it is important to recognize that without investment by the Roseville Redevelopment Agency, we would not have accomplished the following:

• $80 million iIn funding provided for projects associated with improving Downtown
• For every $1 of Agency funds expended, $3 are provided from other sources, such as; private investment; local rehabilitation funds; grants; and State and Federal Funding, so Downtown would have lost $53 million in funding
• 58 businesses were provided a total of $758 thousand dollars to improve their facades and signs, leveraging 2.2 million in private investment
• 103 first -time homebuyers received assistance in purchasing a home
• 3 significant historical elements would have fallen into disrepair: Locomotive 2252, Tower Theater, and the oldest structure in Roseville, the International Order of Odd Fellows (IOOF) building
• 794 Affordable rental housing units, providing housing to a broad spectrum of income levels, our local workforce and seniors
• Three key streetscape and infrastructure projects totaling $35 million
• $4.5 million paid to local schools, in addition to state funding used to improve local school facilities
• 900 jobs created

Why it Works
Restoring blighted areas is often economically infeasible for the private sector to do on its own. The initial community improvements made by redevelopment agencies, coupled with their commitment of funds and low-cost financing, reduce the cost and risk factors associated with these projects. 

Redevelopment works. It’s vitally important to the future of communities like ours. Without it, revitalizations efforts wither, along with our community’s ability to support public safety, housing and schools.  Investing local tax revenue to address local issues makes economic sense.  Cities that demonstrate progressive leadership in reinvesting in the community should serve as models for the state to follow.