2011-04 c RESOLUTION NO. 2011- 04
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
GRAND TERRACE, CALIFORNIA, IN OPPOSITION TO THE
ADMINISTRATION'S PROPOSAL TO ABOLISH
REDEVELOPMENT AGENCIES IN CALIFORNIA
WHEREAS, as part of its 2011-12 budget proposal, the Governor 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 government 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 government 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
California. In fact, in the City of Grand Terrace, abolishing redevelopment will have a
direct negative impact on Michigan Street Improvements; Mt. Vernon Avenue Slope
Stabilization, and Van Buren Street, Pico Street, Michigan Street and Main Street Storm
Drain Projects; and
WHEREAS, throughout California, redevelopment activities support 304,000 jobs
annually, including 170,600 construction jobs, contribute over $40 billion annually to
California'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
governments 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 California. 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
WHEREAS, shutting down redevelopment agencies is a violation of multiple State and
Federal constitutional provisions.
THEREFORE, BE IT RESOLVED that the City of Grand Terrace formally opposes the
Administration's proposal to abolish redevelopment in California.
THEREFORE, BE IT FURTHER RESOLVED, that City of Grand Terrace authorizes its
council and city staff to communicate its opposition to this proposal to the Governor, the
IlIllw Legislature, business groups, and citizens.
PASSED AND ADOPTED this 22 day of February, 2011 by the following vote:
Walt Stanckiewitz
Attest: Mayor of the City of Grand Terrace
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City Clerk of the City of Grand Terrace
I, BRENDA MESA, City Clerk of the City of Grand Terrace, do hereby certify that
Resolution No. 2011- 04 was introduced and adopted at a regular meeting of the City
Council of the City of Grand Terrace held on the 22ntl day of February, 2011, by the
following vote:
AWES: Councilmembers McNaboe, Sandoval and Hays; Mayor Pro Tem Garcia and
Mayor Stanckievitz
NOES: None
ABSENT: None
ABSTAIN: None
Brenda Mesa, City Clerk
Approved as to form:
City Attorney