sr-051209-1lCity Council Meeting: May 12, 2009
Agenda Item: 0 ""' ~--
To: Mayor and City Council
From: Kathryn Vernez, Assistant to the City Manager for Community and
Government Relations
Subject: Opposition to SB 93 (Kehoe)
Recommended Action
It is recommended that the City Council oppose SB 93, unless amended, as it would
affect the City's ability to fund public improvements in Santa Monica through the
Redevelopment Agency; direct staff to communicate opposition.
Executive Summary
SB 93 would require Redevelopment Agencies to make certain findings prior to paying
for construction of public improvements. Included in the proposed legislation are
required findings that significant blight remains within the Redevelopment Project Area
and that the blight cannot be eliminated without the proposed public improvement. In
addition to the requirement for new findings, the bill would eliminate the power of such
findings to be final and conclusive under Agency authority. The proposed requirements
would impose new, expensive and time-consuming mandates on redevelopment
spending on public projects, could further delay projects due to legal entanglements and
could hamper the City's ability to fund certain projects using redevelopment funds.
Discussion
State Senator Christine Kehoe (D-San Diego) introduced SB 93 in January 2009 as a
result of a dispute in San Diego where tax increment will be shifted from a
redevelopment project area to build a parking structure and improvements associated
with a light rail line more than ten miles from the redevelopment project area. However,
as currently drafted, SB 93 would impose new, expensive and time-consuming
mandates on all redevelopment project areas for spending on public facilities inside as
well as outside project areas. SB 93 would require agencies to make new findings of
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blight in the redevelopment project area in order to spend money on a public facility
inside the project area and certify that the public facility will remove blight. Blight
surveys are time-consuming and very expensive, commonly costing tens or hundreds
thousands of dollars. In addition, SB 93 would require blight findings to be subject to
litigation, which will subject projects to potentially expensive delays and legal fights.
Financial Impacts and Budget Actions
There is no fiscal impact from the recommendations in this report and no additional
budget authority is required.
Prepared by: Kathryn Vernez, Assistant to the City Manager for Community and
Government Relations
Andy Agle, Director of Housing and Economic Development
Approved:
Forwarded to Council:
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athryn Ve ez
Assistant to the City Manager for
Community and Government Relations
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P. ~aryYOnt Ewell
City anager -~
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