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Health & Fitness

55 Years of Failed Policy: California's Redevelopment Agencies

For 55 years, California Redevelopment Agencies have taken money from schools and services to give to politically connected developers. A court case could end it.

Over $5 billion in California taxpayer dollars is transferred from the State’s coffers to the bank accounts of politically connected developers every year. 

This practice, called California’s Redevelopment program, is legal and has been encouraged by high-level politicians and bureaucrats for over 55 years.  However, is it right for government to give out corporate welfare on taxpayers’ dime?  There is something inherently wrong with this picture

California’s redevelopment agency (RDAs) program was created to give State agencies jurisdiction to tackle urban blight and offer government-backed incentives in order to encourage development. 

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RDAs offer developers very cheap money – sometimes even free money – in order to attract development in areas of a community which has been deemed “blighted.” 

The RDA can then use the power of eminent domain to kick out private businesses and landowners in order for the developer to own all the land needed for the project.  There is something inherently wrong with this picture

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The RDAs will try and convince you that this whole process is all in the name of “jobs.”  The facts show this is not the case. 

According to a report by the State’s Legislative Analyst Office, there is “little evidence that Redevelopment increases jobs.”  There is something inherently wrong with this picture

Residents of San Leandro just need to look at one recent, local example to realize what a sham California’s Redevelopment program is. 

, the City of San Leandro and its RDA are making a “$3 million investment” in a local development. 

The City spent somewhere around $6.2 million to seize a piece of private property which it will now happily sell to a developer for just around $3 million. 

At a time when city services throughout the State, such as police and firefighters, are being cut, there is absolutely no way to justify losing $3 million in the name of a new development in town.  There is something inherently wrong with this picture. 

The $3 million loss your City is taking is nothing more than a corporate subsidy funded by you, the taxpayers of San Leandro.  The fact that local politicians believe it is OK to hand out corporate subsidies in a time when austerity budgets are needed in order to remain solvent is the fault of the last 55 years of failed redevelopment policy. 

For 55 years, politicians have been able to kick out private businesses they did not like.  For 55 years, politicians have been able to and handpick businesses and chose winners and losers. 

For 55 years, developers in California have been handed taxpayer-funded subsidies for the pleasure of doing business in our State.  There is something inherently wrong with this picture – will it ever change? 

Finally, somebody with the means to instigate change saw what we at the California Alliance to Protect Private Property Rights have seen for years: Redevelopment Agencies are a failed State program and must be abolished. 

As a part of Governor Jerry Brown’s 2011-2012 budget, redevelopment agencies were banished and then allowed back if they paid back into the State’s general fund.  The California Redevelopment Association sued the State – calling the law unconstitutional – and the California Supreme Court will hear the case this week (oral arguments start Thursday, November 10, and can be watched at www.calchannel.com).

California Supreme Court Justices have an opportunity to make history and uphold the bill abolishing RDAs, consequentially returning millions of dollars to schools, police and firefighters, and communities that so desperately need it. 

The Alliance is not alone when it comes to voicing concerns with RDAs. In addition to the Alliance, the California Teachers Association and the California Professional Firefighters Association have submitted briefs with the California State Supreme Court highlighting redevelopment abuse and explaining why RDAs should be abolished. 

RDAs are close to their final breath – the time for taxpayer funds being used to directly benefit taxpayers instead of politically connected developers is close to fruition!

Nick Mirman is the Grassroots Coordinator for the California Alliance to Protect Private Property Rights.  The California Alliance to Protect Private Property Rights  is a non-profit organization dedicated to forming a  coalition of family farmers, community and taxpayer advocates all  committed to exposing the dangers and abuses of eminent domain — government’s taking of private property from unwilling sellers to benefit politically connected developers.

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