OUR VIEW: Redevelopment agencies need a little more time
The statewide redevelopment agency shutdown is likely to pave the way for more focused local investment to revive blighted urban areas and spur economic developments. But trying to shut down some 400 redevelopment agencies by next Wednesday is a difficult task and one that could jeopardize an effort to refashion local redevelopment.
Redevelopment agencies have until then to shut down operations. That's too tight of a deadline, considering what's involved: transferring debt, property, leases, contracting and partially completed projects to "successor agencies," most likely city governments. The process will sow confusion and invite lawsuits.
In response to the harried rush to close these offices, bond rating agencies have reacted negatively. Moody's downgraded California redevelopment bonds and Fitch has put them on watch. Both cited the risks posed by the short time redevelopment agencies have to comply with shutdown orders.
SB 659, introduced by state Sen. Alex Padilla, D-Pacoima, would delay until April 15 the deadline for redevelopment offices to close. The bill has been endorsed by dozens of local governments and business, community, affordable housing and public safety groups.
The bill would not undo the abolishing of agencies. It would simply give them a few more weeks to finish up their business.
We endorse SB 659.
