****Urgent Update from the California Redevelopment Association****
CRA V. MATOSANTOS ORAL ARGUMENTS TO BE BROADCAST
California Supreme Court Sets November 10 for Oral Arguments in CRA/League Lawsuit
Earlier this week, the California Supreme Court announced that it had set a date for oral arguments in the CRA and League of California Cities’ challenge to recent legislation, AB 1X 26 and 27, California Redevelopment Association v. Matosantos. And, of interest to the many local redevelopment practitioners throughout the state, the November 10 proceedings will be broadcast on the California Channel,www.calchannel.com.
CRA v. Matosantos will be heard on November 10, 2011, 9:00 – 10:00 a.m., in the Supreme Court Courtroom located on the fourth floor of the Earl Warren Building at 350 McAllister Street in San Francisco, CA. The Court approved the live statewide television broadcast and webcast of the case. In addition, the Court also made arrangements for overflow seating for arguments in this and the other cases scheduled that week at the Hiram Smith State Office Building Auditorium, 455 Golden Gate Avenue, San Francisco.
CRA v. Matosantos is the lawsuit challenging the constitutionality of the state’s plan to eliminate redevelopment agencies unless they agree to pay $1.7 billion for FY 2011-12 and $400 million in subsequent budget years. CRA along with the League of California Cities and the cities of San Jose and Union City filed the initial petition on July 18. The central claim in the lawsuit is that AB 1x 26 and AB 1x 27 violate the California State Constitution, including Proposition 22, which was passed by 61 percent of California voters in November 2010.
In August, the Court agreed to hear the case on an expedited basis, in order to reach a decision before Jan. 15, 2012, when the first payments under AB 1x 27 would be due. For materials and other information related to the lawsuit and the legislation, please visit CRA’s website .****
Redevelopment Agencies (RDAs) throughout California have improved the communities they serve for many years. Long Beach has relied on its local RDA to combat blight and support the development of community amenities such as parks and schools. Recently, California Governor Jerry Brown proposed a state-wide budget that would eliminate RDAs.
- Since 1993, RDAs in California have built or rehabilitated over 98,000 units of affordable housing.
- Redevelopment activities support over 304,000 full- and part-time private sector jobs on an annual basis.
- Projects funded by the Long Beach RDA include the new Seaside Park, K9 Corner Dog Park, Admiral Kidd Park, Dooley Magnet School, the Downtown Promenade, the Waterfront Boardwalk in Downtown, and Fire Station 12 in North Long Beach.
Below are resources providing information on RDAs, the benefits they provide to local communities, and the Governor’s proposed budget.
Governor Brown’s Budget Summary
Legal Analysis RE Constitutionality of Governor’s Proposed Budget Released March 3, 2011
Draft Trailer Bill Language to Implement the Proposed Budget (from the California State Department of Finance February 23, 2011) - Redevelopment Agency Dissolution and Succession
California Redevelopment Agency’s Analysis of Draft Trailer Bill Language Released February 28, 2011
Excerpt from Governor’s Budget Summary 2011-12 on “Tax Relief and Local Government”
Governor’s Budget Summary 2011-12 – Complete Summary
Legislative Analyst’s Office Report on Governor’s Redevelopment Proposal Released February 3, 2011
California Redevelopment Association (www.calredevelop.org)
CRA Conference March 30-April 1 – Attend the 2011 CRA Annual Conference & EXPO to learn the latest on the Governor’s proposal, an update on legislation related to the State’s redevelopment proposal, how we can work together to protect redevelopment in California, and more. This year’s event is being held on March 30 – April 1 at the McEnery San Jose Convention Center. The theme of the conference is “Redevelopment: Worth Fight For,” and it begins with keynote speaker, Carl Guardino, President & CEO of Silicon Valley Leadership Group. His topic is ” Re-position RDAs: Can We ‘Mend it Rather Than End it?’ You won’t want to miss what he has to say.
January 10, 2011, Press Release
Answers to Concerns and Speculation Regarding Proposal to End Redevelopment
Sample Resolution in Opposition to Administration’s Redevelopment Proposal
League of California Cities (www.cacities.org)
League of California Cities Board Actions 2.10-11.11
County-by-County Losses of 300,000 Jobs
Sample Letter from Business to Governor and Legislators
Sample Letter from Business to Editor
More Than 100 City, Redevelopment and Enterprise Zone Officials Testify Against Governor’s Proposal to End Redevelopment and Enterprise Zones – City Advocate Weekly Newsletter, 2.8.11
Protect Local Jobs and the Economy (www.protectourlocaleconomy.com)
The Plan to Protect Redevelopment in California
Long Beach Redevelopment Agency (www.longbeachrda.org)
Benefits of Revelopment in Long Beach
January 2011 Inside Long Beach TV Program
2009 Annual Report (Large File–may take a few minutes to download)
Long Beach Community Members
Long Beach Councilmember Patrick O’Donnell – Letter Recapping State Legislative Meeting
Long Beach Councilmember Robert Garcia - Letter in Support of City Council’s Action to Continue Funding Local RDA Projects
Long Beach Chamber President and CEO Randy Gordon-“Enterprise Zones are Investments, Not Liabilities”
Long Beach Workforce Investment Board – Long Beach Enterprise Zone
Enterprise Zone Testimonials:
“Worldwise Education seeks to provide school children everywhere with equal access to learning opportunities. We moved to Long Beach solely for the Enterprise Zone program. This allowed us to lower our overall costs of doing business and give more of our profits back to schools throughout the region.” -Charles Paul, Worldwise Education
“The Enterprise Zone program was critically important in allowing our licensed, stand-alone restaurant to stay open during some very challenging economic times. The tax credits allowed us to retain employees, upgrade certain equipment and recently provide construction jobs for local contractors.
The program also allowed us to obtain financing from our local bank and private investors, which would not have otherwise been available. The California and city-level tax and regulatory environment is extremely challenging for the small business owner and we need programs such as the Enterprise Zone program to offset these other costs.” -John Sangmeister, Gladstone’s Long Beach
“Over the last several years, our business has been subject to revenue compression, meaning that we are working harder for less as a result of competition, regulation, and a downturn in the economy.
However, through this we have managed to grow as a company through an increase in market share. This would not have been possible without the Enterprise Zone program. As a small business with 25 employees, our payroll is our largest expense. The Enterprise Zone program has allowed us to invest in talent and continue to hire local employees to support our growth. Without the Enterprise Zone program, it would have been much tougher for us to take on the complete burden of a new employee’s payroll without the tax credits.
We have now been in business in Long beach for over 42 years. Our biggest competition comes from larger firms that are outside of California. We compete locally and are proud of the level of service we can provide to local businesses. As many of our clients are being chased out of California due to regulation and expensive workers’ compensation rates, it is critical for us to continue to invest in new talent to maximize our growth and our company – something made possible through the Enterprise Zone program.” -Trent D. Bryson, Bryson Financial Group
“In late 2009 Network Public Affairs was looking to hire an intern to assist with policy analysis. I was advised by City of Long Beach staff and other tax experts that credits could be available for hiring within the Enterprise Zone. Understanding that this assistance was available for my very small company gave me the confidence to proceed with the hiring decision. I received detailed information from the city to help me evaluate the applicants, and I ultimately hired one employee who lived in an Enterprise Zone area and was eligible for the credit.” -Nancy Pfeffer, Network Public Affairs
