Historically, California and other states have depended upon redevelopment agencies to improve the urban landscape. The United States Housing Act developed the concept of redevelopment in 1949. The goal was to provide a program that was under the wing of development with the development agencies. Using federal funds, they would purchase areas and clear them out to sell to private enterprises.
California and other states passed laws to allow these agencies to use revenue from taxes to increase redevelopment and economic development. The increment of tax revenue difference is the amount that is paid before and after the land is redeveloped. One of the most famous redevelopments is in the Gas Lamp District in San Diego. After being redeveloped, this district is worth more and taxes have gone up as a result. The additional revenue from taxes goes towards bonds and other credit to provide public improvements that include parking, utilities, and roads.
After 2012, more than 400 redevelopment agencies were disbanded due to new legislation. The shut down of urban renewal in California has caused chaos since the redevelopment agencies were the major engine for renewal to many cities. The public and developers alike depended upon the agencies to redevelop urban areas as well as fuel the local economies.
Within the changes, the Successor Agencies have established control over many projects in the redevelopment stage to oversee the work. With our Palm Springs government law firm and municipal legal counsel, we can help you navigate the changes planned for redevelopment law.
