HomeMy WebLinkAboutCC RES 2011-6RESOLUTON NO 2011-06
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT,
CALIFORNIA, OPPOSING THE GOVERNOR'S PROPOSAL TO ABOLISH
REDEVELOPMENT AGENCIES IN CALIFORNIA
WHEREAS, as part of its 2011-12 budget proposal, the Govemor has proposed
permanently abolishing California's more than 400 local redevelopment agencies; and
WHEREAS, this proposal represents more of the same misguided and illegal
State budget raids of local govemment funds that voters have repeatedly sought to end,
most recently in November 2010 when an overwhelming 61% of voters elected to stop
State raids of local govemment funds, including redevelopment funds; and
WHEREAS, this proposal will bring very little financial benefit to the State.
According to the State Controller's Office, redevelopment agencies have more than $87
billion in bond and other contractual obligations that legally must be repaid before
revenues are available to any other purpose. In fact, according to the State Department
of Finance's own budget documents, there will be zero State savings in out years from
shutting down redevelopment; and
WHEREAS, this proposal will destroy local economic development, including
hundreds of thousands of jobs and billions of dollars in local economic activity
throughout Califomia. In fact in Palm Desert, abolishing redevelopment will eliminate the
City's ability to build necessary capital improvement projects, such as two new fire
stations, a 26-acre regional park, and the Portola Avenue/Interstate 10 interchange
project, and will reduce our continued support of educational opportunities such as the
creation of the Coachella Valley's only Califomia State University and University of
Califomia campuses; and
WHEREAS, throughout California, redevelopment activities support 304,000 jobs
annually, including 170,600 construction jobs, contribute over $40 billion annually to
Califomia's economy in the generation of goods and services, and generate more than
$2 billion in state and local taxes in a typical year; and
WHEREAS, eliminating redevelopment will take away one of the few tools local
govemments have to comply with state requirements to plan for more compact urban
development supported by transit -oriented development, housing, jobs and
infrastructure; and
WHEREAS, eliminating redevelopment will destroy the development of
affordable housing in Califomia, including eliminate the City's ability to: provide
affordable housing, such as Carlos Ortega Villas, a planned 72-unit affordable senior
housing development in Palm Desert. Redevelopment agencies are the second largest
funder of affordable housing, behind only the federal government, responsible for over
98,000 units of affordable housing since 1993; and
RESOLUTION NO. 2011-06
WHEREAS, shutting down redevelopment agencies is a violation of multiple
State and Federal constitutional provisions.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT,
CALIFORNIA, DOES HEREBY RESOLVE, DECLARE, DETERMINE, AND ORDER
AS FOLLOWS:
SECTION 1. That the City of Palm Desert formally oppose the Governor's
proposal to abolish redevelopment agencies in Califomia.
SECTION 2. That Palm Desert authorizes its City Council and city staff to
communicate its opposition to this proposal to the Govemor, the Legislature, business
groups, and citizens.
PASSED APPROVED AND ADOPTED by the City Council of the City of Palm
Desert, Califomia, on this 27th day of January, 2011, by the following vote,
AYES:
FINERTY, HARNIK, KROONEN, SPIEGEL, AND BENSON
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
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N 6ENSON, OR
ATTEST:
CHELLE D. KLAS EN,T151C—CI-IRK
CITY OF PALM DESERT, CALIFORNIA