Redevelopment Major Worry As South Gate Looks to Future

The City of South Gate's finances are threatened by the demise of the community redevelopment agency, business leaders were told at Wednesday afternoon's State of the City event.

“The city finances while strong, are not stable,” said Bryan Cook, city director of finance. “The immediate threat to [our financial balance] is what is happening to redevelopment.”

Mayor Maria Davila and directors of each city department shared their thoughts on the financial status of the city and their individual agencies at the event organized by the  .

“It is important to hear from [the directors] because they are focused on their areas and can be more accurate,” said Mayor Davila.

Among the most important topics discussed by officials were the potential effects from the state's elimination of local community redevelopment agencies.

“Today is the day that the community redevelopment is being canceled,” said Mayor Davila. “[Local business people] will hear about what is going to happen and what this means.”

South Gate officials said they considered the city to be in decent shape overall given its capacity to withstand the financial adjustments to come with the closure of the redevelopment agency.

Redevelopment agencies assisted municipalities in revitalizing deteriorated areas with major funding. The funds attracted private developers who were otherwise hesitant to invest in distressed communities. The agencies also helped cities with housing programs and other development ventures.

“The City Council and the city itself were very aggressive and approved millions of square feet for redevelopment,” said Steven Lefever, director of community development. “Unfortunately, due to the great recession, a fraction of that was actually developed.”

Despite the sudden decline in funding, officials insisted they would do the best they can to proceed with as many development projects as the city can afford.

“Today, we are trying to rebuild all of that,” said Lefever. “We have been somewhat successful.”

Projects that need to be redeveloped included the 32.6-acre Azalea shopping mall that has made significant progress in the past few months after several years of planning.

“We are about 80 percent of the way there,” said Lefever. “We are now working on a subsidy request by the developers.”

City officials expect to have to think creatively to find funding for projects that can entice businesses to invest in South Gate, as well for housing and other development projects.

“We will have to look for other sources, be creative, and sometimes [be] more risky,” said Lefever.

Despite the current financial reality, officials said South Gate is in a less precarious situation than other municipalities due to its conservative fiscal approach.

“We instituted pay cuts 12 to 18 months before other cities,” said Cook. “[This] is one of the reasons we have been able to weather the storm better then others.”

Other department heads echoed the need to use their resources creatively to do more with less.

Mohammad Mostahkami, director of public works, provided attendees with a long list of improvements expected to be finished by 2012. These include citywide street lighting upgrades and the planting of 2000 trees.

Parks and Recreation Director, ,  highlighted the importance of grants in achieving improvements, such as the opening of the new Fitness Center in South Gate Park.

, Chief of Policegave a brief speech that mentioned how public safety and crime numbers have continued to improve in South Gate despite the recession.

Attendees seemed generally happy with the event, which at least one participant considered a crash course in economic issues affecting South Gate.

“This is the perfect place to come and get encapsulated in two hours with information that lasts you for several months,” said Heather Kline, manager of California Metals, who confessed not being able to attend City Council meetings because of her busy schedule.

“When I make business decisions for my small company, this information will affect it,” she said.