Agency works to upgrade blighted areas
By Dale Ellis
Lombardo and Gilles
Redevelopment is big news these days. Downtown Hollister,
Salinas, Marina and Castroville all have positive examples of
redevelopment efforts. But what is
”
redevelopment
”
and how does it work?
Agency works to upgrade blighted areas
By Dale Ellis
Lombardo and Gilles
Redevelopment is big news these days. Downtown Hollister, Salinas, Marina and Castroville all have positive examples of redevelopment efforts. But what is “redevelopment” and how does it work?
Redevelopment is a tool that local governments use in partnership with private owners and investors to:
– Attract and retain jobs and businesses;
– Create affordable housing;
– Promote private investment in local neighborhoods and businesses;
– Reduce crime;
– Improve infrastructure and public facilities;
– Preserve open space; and
– Change underutilized properties into productive uses.
Redevelopment areas are a number of properties in the same area that are generally considered to be under-used and to be “blighted.” Redevelopment assists in eliminating blight as a means of revitalizing that area. Blight is characterized by physical and economic conditions such as:
– Unsafe, deteriorating and poorly-maintained buildings;
– Inadequate infrastructure (i.e. utilities, storm drainage, sewers, street lighting).
– High business vacancies and high turnover rates;
– Vacant and underutilized land or buildings;
– Depreciated or stagnant property values;
– High crime rates;
– Lack of neighborhood businesses for residents; and
– Residential overcrowding.
Redevelopment agencies are governed by a Board of Directors (typically the county board of supervisors or city council). Once a redevelopment area is identified, a redevelopment plan (which is usually developed with strong community input) is prepared to guide the redevelopment efforts. The agency also adopts a five-year implementation plan with specific actions and milestones. Agency staff works with the public, other public agencies, private developers and its Board of Directors to achieve the goals of the redevelopment plan.
Tax increment financing (“TIF”) is the primary source of revenue for redevelopment agencies. TIF is combined with private investment and other funding sources to pay for redevelopment activities. When a redevelopment area is established, the assessed values of the properties in the area become the “base year value.” As the value of the land increases so does the tax revenue generated by the property. The increase in the TIF is then reinvested directly in the redevelopment area. Twenty percent of the TIF goes into a housing fund set aside specifically to finance low- to moderate-income housing.
Redevelopment is an opportunity to improve and enhance your community. If you live, work or own properties in a redevelopment area, then the improvement of infrastructure, buildings and businesses will be a significant direct benefit to you. If you are in a community with an active redevelopment program, then you will benefit by the overall improvement to the community, increased property value and improved environment.
There are many resources available to you. City and county Web sites are full of information. Staff at the city hall or the courthouse can assist. Or, you can consult your attorney or a local planning firm to learn more.
This column is the work product of Lombardo & Gilles, LLP, which has offices in Hollister and Salinas. Dale Ellis is a land use specialist with Lombardo & Gilles, LLP. You may contact the author at (888) 757-2444 or [email protected]. Mail your questions to Dale Ellis, It’s the Law, c/o The Pinnacle, 380 San Benito St., Hollister, CA 95023.
