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| Redevelopment Agency (California) | |
|---|---|
| Name | Redevelopment Agency (California) |
| Formed | 1945 |
| Dissolved | 2012 |
| Jurisdiction | State of California |
Redevelopment Agency (California) The Redevelopment Agency established in California under state statute was a collection of municipal and county Redevelopment Agency (California) entities—operating through local redevelopment project areas—to use tax increment financing tools for urban renewal, housing, and infrastructure investment. Agencies interacted with statewide institutions such as the California Legislature, Governor of California, California Supreme Court, and statewide programs including the California Community Redevelopment Act and various housing mandates. Over decades agencies partnered with private developers, municipal departments, and federal programs including the United States Department of Housing and Urban Development and the Federal Highway Administration.
California redevelopment traces to post-World War II urban programs influenced by the New Deal, Federal Housing Administration, and wartime migration patterns tied to World War II industrial growth. The California Legislature enacted the Community Redevelopment Law in 1945 and local entities such as the City of Los Angeles, City of San Francisco, City of San Diego, City of Oakland, and City of Sacramento created agencies to implement projects in downtown cores, waterfronts, and transit corridors. Major eras included the urban renewal projects of the 1950s and 1960s, partnership-driven development in the 1970s and 1980s with firms like The Irvine Company and Chevron Corporation, and housing-focused initiatives in the 1990s tied to mandates from the California Department of Housing and Community Development and court decisions such as California Building Standards Commission rulings affecting local planning. The early 21st century saw intensified scrutiny related to state budget crises under governors Arnold Schwarzenegger and Jerry Brown leading to litigation culminating before the California Supreme Court.
Agencies derived authority from statutory instruments including the California Health and Safety Code provisions implementing the Community Redevelopment Law and enabling ordinances adopted by cities and counties such as San Jose City Council and Los Angeles City Council. Authorities enabled acquisition of property via eminent domain proceedings adjudicated in courts including the United States District Court for the Northern District of California and the California Court of Appeal. Agencies negotiated disposition and development agreements with private entities such as Forest City Enterprises and financial institutions like the Bank of America and Wells Fargo. Oversight involved statewide offices including the California State Controller and audits by the California State Auditor.
Local agencies were structured as separate legal entities overseen by governing bodies such as city councils or redevelopment boards in cities like Long Beach, Fresno, and Anaheim. Functions included assembling parcels, issuing debt, administering affordable housing programs in coordination with the California Tax Credit Allocation Committee and Low Income Housing Tax Credit policies, and funding public improvements tied to transit agencies like Bay Area Rapid Transit and Los Angeles County Metropolitan Transportation Authority. Agencies employed planners, legal counsel, and finance teams and contracted with firms including AECOM and Jacobs Engineering Group for environmental review under the California Environmental Quality Act administered by agencies such as the California Environmental Protection Agency.
Funding relied principally on tax increment financing where increases in property tax revenues within project areas were captured by agencies rather than general-purpose entities including County of Los Angeles treasuries. Agencies issued bonds—tax allocation bonds and revenue bonds—marketed to institutional investors such as BlackRock and Goldman Sachs, and utilized federal programs such as Community Development Block Grant funds administered by the United States Department of Housing and Urban Development. Complex fiscal interactions involved county auditors, the California Department of Finance, and state budget processes overseen by the California State Legislature and California Governor.
Notable projects included waterfront redevelopment in San Francisco involving the Embarcadero, downtown revitalization in Los Angeles including Staples Center adjacency deals, transit-oriented development around Transbay Transit Center and Union Station, and mixed-use redevelopment in Oakland and San Diego waterfront districts tied to entities such as Port of San Diego. Collaborations with universities and research institutions like University of California, Berkeley and University of Southern California influenced innovation district planning. Impacts included new housing units, commercial space, infrastructure upgrades, and contributions to Caltrans-adjacent improvements, while also reshaping neighborhood demographics and property values near light rail and BART stations.
Agencies faced controversies involving eminent domain controversies similar to cases reaching the United States Supreme Court in cases such as decisions on takings, disputes over diversion of revenues affecting local school districts like Los Angeles Unified School District, and allegations of favoritism toward large developers such as The Related Companies and Trammell Crow Company. Legal challenges included lawsuits before the California Supreme Court and federal courts contesting constitutionality of financing mechanisms and compliance with the California Environmental Quality Act and Davis-Stirling Common Interest Development Act implications for housing projects. Critics included advocacy groups like California Budget & Policy Center and civil rights organizations leading to legislative reforms.
In 2011–2012, under Governor Jerry Brown and enacted budget measures by the California State Legislature, the California Supreme Court and lower courts addressed statutory disputes culminating in the statewide dissolution of redevelopment agencies, shifting assets and enforceable obligations to successor bodies such as local "successor agencies" overseen by the California Department of Finance and audits by the California State Controller. The aftermath involved settlement of bond obligations with underwriters including JPMorgan Chase and restructuring of affordable housing covenants administered by agencies such as the California Tax Credit Allocation Committee and local housing authorities like the Housing Authority of the City of Los Angeles.
Category:Public agencies of California