8I Consent 2011 0207 - Laserfiche WebLink

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CITY OF SAN LEANDRO APPROVED AND STAFF REPORT FORWARDED TO CITY COUNCIL Step en L. Hollister DATE: February 7, 2011 City Manager TO: Stephen L. Hollister, City Manager FROM: Luke Sims, Community Development Director* VIA: Cynthia Battenberg, iness Development Manager BY: Jeff Kay, Business Development Analyst SUBJECT PROJECT/PROJECT DESCRIPTION: MATTER OF A RESOLUTION N OPPOSITION TO THE GOVERNOR'S PROPOSAL TO ABOLISH REDEVELOPMENT AGENCIES N CALIFORNIA SUiMNIARY AND RECOMMENDATION The California Governor has proposed disbanding redevelopment agencies as of July 1, 2011 to redirect tax increment to fund state obligations. This proposal, if approved, would severely harm economic development and affordable housing efforts in San Leandro. Further, the proposal would likely result in a significant negative impact on the City's General Fund. BACKGROUND The Governor's proposed 2011 -12 State budget is misguided and harmful because: • It will harm the California economy and represents a clear violation of the intent of the voters, as evidenced by the passage of Proposition 22 in November 2010 when an overwhelming 61% of voters elected to stop State raids of local government funds, including redevelopment funds. • It 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. • Redevelopment, both state -wide and in San Leandro in particular, has proven to be an effective tool for creating new jobs and increased tax revenues. The projects identified in San Leandro's Five -Year Implementation Plan for 2010 -2014 are estimated to generate 750 construction jobs, 700 permanent jobs, 51.3 million in annual property tax, and 52.1 million in annual sales tax, while leveraging over 5150 million in private investment.