Community Redevelopment Law (California)
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| Community Redevelopment Law (California) | |
|---|---|
| Name | Community Redevelopment Law (California) |
| Enacted by | California State Legislature |
| Year enacted | 1945 |
| Status | repealed for new agencies in 2011, legacy provisions remaining |
Community Redevelopment Law (California) guided municipal urban renewal through enabling statutes that authorized redevelopment agencies to undertake blight remediation, land assembly, and project financing across Los Angeles, San Francisco, Oakland, San Diego, and other California municipalities. Originating in the mid-20th century, the law intersected with landmark decisions and policy shifts involving the California Supreme Court, the United States Supreme Court, the Legislature of California, and fiscal reforms spearheaded by governors including Earl Warren, Jerry Brown, and Arnold Schwarzenegger. The statute’s application touched on high-profile developments such as Bunker Hill (Los Angeles), Mission Bay (San Francisco), and South of Market, San Francisco, provoking debates among advocates represented by organizations like the League of California Cities and critics aligned with groups such as the California Redevelopment Association.
Overview and Historical Background
The law was enacted following precedents set in New Deal era programs and influenced by the postwar urban policy debates involving President Harry S. Truman and planning models used in Chicago. Early adopters included Los Angeles County and San Diego County, which used statutory powers for land readjustment in areas linked to ports and railroads like the Port of Los Angeles and the Atchison, Topeka and Santa Fe Railway. Major projects drew participation from private developers such as The Irvine Company and institutions like University of California, San Francisco in Mission Bay, with municipal actors including mayors like Sam Yorty and Dianne Feinstein shaping local agendas. Over decades, scholarly critiques from Jane Jacobs-inspired urbanists and legal analyses by scholars at UC Berkeley and Stanford University reframed the law within debates over displacement, zoning, and urban design.
Legal Framework and Statutory Provisions
The statutory architecture derived from the original act and subsequent amendments processed by the California Legislature and interpreted by the California Supreme Court in cases paralleling Kelo v. City of New London and other eminent domain jurisprudence. Key provisions addressed the definition of blight as applied in jurisdictions like Contra Costa County and procedures for adoption of redevelopment plans under protocols used by the City of Sacramento and City of Long Beach. Administrative oversight involved the State Controller of California and fiscal instruments regulated under statutes administered by officials such as the California Treasurer and agencies including the Department of Finance (California). Interpretive guidance often referenced decisions from the United States Court of Appeals for the Ninth Circuit and standards from the Federal Housing Administration.
Redevelopment Agencies and Governance
Redevelopment agencies operated as public entities in cities like Pasadena, Walnut Creek, and Beverly Hills, with governing boards drawn from municipal councils and appointees modeled after boards in New York City urban renewal projects. Governance intersected with labor relations involving unions such as the International Brotherhood of Electrical Workers and procurement practices influenced by firms like AECOM and Skanska. Oversight disputes engaged watchdogs including the Little Hoover Commission and advocacy groups like the ACLU of Northern California. Intergovernmental coordination involved county entities such as the Los Angeles County Board of Supervisors and regional agencies like the Metropolitan Transportation Commission.
Funding Mechanisms and Tax Increment Financing
The law relied heavily on tax increment financing (TIF) mechanisms practiced in Oakland and Fresno that reallocated assessed value increases to redevelopment bonds underwritten by municipal finance intermediaries like Goldman Sachs and municipal advisors accredited through Municipal Securities Rulemaking Board. Bond issuances adhered to disclosure rules enforced by the Securities and Exchange Commission and litigation over fiscal impacts involved plaintiff groups represented by legal firms with precedents in cases against counties such as Orange County. TIF revenue streams affected fiscal relationships with school districts like those in Los Angeles Unified School District and special districts including water agencies governed by boards in Contra Costa Water District.
Project Planning, Implementation, and Eminent Domain
Project-level planning integrated environmental review under statutes comparable to California Environmental Quality Act practice in projects such as Bunker Hill and Mission Bay, with implementation involving public-private partnerships among developers such as Tishman Speyer and institutions like San Francisco Giants (for stadium-adjacent projects). Redevelopment agencies exercised eminent domain powers debated alongside decisions like Kelo v. City of New London and interpreted by the California Supreme Court in cases affecting property owners in neighborhoods such as Chinatown, San Francisco and Little Tokyo, Los Angeles. Infrastructure elements tied to redevelopment implicated transit agencies such as Bay Area Rapid Transit and Los Angeles County Metropolitan Transportation Authority.
Controversies, Legal Challenges, and Reforms
Controversies culminated in litigation and legislative reform driven by fiscal crises and policy disputes involving governors Arnold Schwarzenegger and Jerry Brown, and led to the 2011 statutory dismantling of most redevelopment agencies following actions by the California Legislature and rulings in state courts. Debates involved advocates like the California Teachers Association and opponents including taxpayer groups such as Howard Jarvis Taxpayers Association, with judicial review in forums including the California Court of Appeal and fiscal oversight by the State Auditor of California. Reforms addressed alleged abuses highlighted in city scandals and prompted alternative programs managed by entities like the California Infrastructure and Economic Development Bank.
Impact and Case Studies
Case studies span transformative urban projects: Bunker Hill (Los Angeles), Mission Bay (San Francisco), Old Oakland, Downtown San Diego redevelopment, and transit-oriented developments near Union Station (Los Angeles). Outcomes included mixed-income housing initiatives partnering with nonprofit developers such as Mercy Housing and financial structures involving agencies like the California Housing Finance Agency. Scholarly assessments from institutions including UCLA Luskin School of Public Affairs and UC Berkeley College of Environmental Design analyze effects on displacement, property values, and municipal finance, informing contemporary policy debates in city councils of San Francisco, Los Angeles, and San Diego about equitable redevelopment, affordable housing, and infrastructure investment.