Although local municipalities have abused the less-than-rigid
rules previously guiding redevelopment agencies, the alternative
for cities such as Hollister, and the state as a whole, is a severe
lack of any mechanism to expand revenue and boost business.
Although local municipalities have abused the less-than-rigid rules previously guiding redevelopment agencies, the alternative for cities such as Hollister, and the state as a whole, is a severe lack of any mechanism to expand revenue and boost business.
The Hollister City Council has tentatively OK’d the prospect of joining on with the state’s “successor agency” program, in lieu of the California budget that largely eliminates the RDA system as it stands. Hollister officials agreed to keep the option open, but join other jurisdictions throughout the state in waiting for litigation over the matter to play out.
Council members made the right decision in staying on board, and largely because there really are no mechanisms remaining that focus on rejuvenating the economy and, in effect, growing government revenues that are getting harder and harder to come by. Even further damaging could be the loss of services from the Economic Development Corp. of San Benito County. That organization receives about half of its funding from Hollister and San Benito County. The city has mentioned the possibility of recoiling its $75,000 in annual EDC funding if the RDA goes away, and county leaders at their recent budget hearings didn’t consider their $50,000 a slam dunk, either.
And while many RDA programs such as Hollister’s have a lot of room for improvement – the rules allow for too much discretion, particularly providing opportunities to use discretion in shifting funds – the new state system strives to tighten the guidelines and ensure that tax dollars are spent wisely. It deserves a chance at success, and Hollister is a community that needs redevelopment opportunities more than most others do.
Once the litigation matters are settled, and assuming the new restrictions won’t deem the prospect completely unfeasible, Hollister officials should lean toward continuing on one of the only remaining, structured mechanisms for future prosperity.
From that point, the key will be in holding redevelopment leaders, including the EDC, to higher standards of accountability.
