CRA Email Bomb: Boo Hoo Hoo

Jerry Brown did something we at Mayor Sam salute him for, and that is he killed the CRA.

CRAs are an awful arm of government that suck tax dollars from schools, police, fire and roads and give them to politically connected real estate developers who can't otherwise make projects work in the free market and need tax dollars to make them profitable, at least profitable enough to flip. They make a faustian deal with the unions and elected officials to promote projects that no one else would otherwise build. More horrifying,the CRA can take your property - even if it's a family owned business that has thrived for decades - and give it to another business all in the name of fighting "blight."

The California Supreme Court recently ruled that Jerry Brown's plan to shut down the CRAs and turn their money back to education and public safety is indeed, valid. Now the agencies, like addicts whose substance has been taken away, are fighting for their dear life.

If you get involved in any fight this year, tell your state legislator NOT to revive the CRA!



---------- Forwarded message ----------
From: "Gonzalez, Sandra" <sgonzalez2@cra.lacity.org>
Date: Jan 6, 2012 11:50 AM
Subject: CRA/LA Update: Supreme Court Ruling, CRA&apos;s Dissolved on February 1
To: "Gonzalez, Sandra" <sgonzalez2@cra.lacity.org>

It is disheartening to know, the California Supreme Court issued a decision last Thursday that upheld AB1x-26, which dissolves redevelopment agencies across the state, while ruling unconstitutional its companion bill, AB1x-27, which would have reconstituted redevelopment agencies in exchange for large payments to finance other government operations and priorities. As part of the Supreme Court’s ruling, agencies are to be dissolved on February 1, 2012.

It appears that this decision, unless superseded by legislative action, takes away one of the strongest economic development tools that the city and state are depending upon at such a critical time. We are continuing to review the decision’s implications for the Agency’s functions, projects and employees, and are committed to providing you as much information as we learn more. 

If there are any legislative options to pursue, we will be evaluating them in the days to come.  In fact, many legislators are already rushing to say they believe in redevelopment’s value, had no intent to eliminate it and will work to repair the damage the court’s decision will cause.

Currently, a coalition of labor, business, local government, public safety, affordable housing, and redevelopment supporters is working with members of the Legislature to temporarily postpone the February 1, 2012 dissolution deadline in order to preserve the ability to create a restructured redevelopment program.

Temporarily postponing the February 1 dissolution deadline is needed to buy time to determine the future of redevelopment.

·         If agencies are dissolved on February 1, 2012, successor agencies are charged with winding down redevelopment agency activities, including dissolving and liquidating assets and eliminating workers available to carry out redevelopment activities.  Once the dissolution process begins, it will be nearly impossible to reconstitute redevelopment. The dissolution process could take years, leaving no opportunity for local agencies to pursue or implement an alternative to redevelopment.

Allowing the dissolution process to proceed on February 1 will lead to mass litigation and chaos.

·         The process of dissolving agencies and forming successor agencies will be highly contentious and fraught with litigation and conflict.  The successor agencies are responsible for winding down all assets, properties, contracts, leases, records, buildings, and equipment of the former redevelopment agencies.

·         Once this process starts, it will lead to potentially hundreds of lawsuits, endless delays, and ongoing conflict.  All of this makes it more difficult to develop a renewed and restructured redevelopment program in California, let alone ensure that dollars are available for education.

We are continuing to review the decision’s implications for the Agency’s functions, projects and employees, and are committed to providing you as much information as we learn more.