Resolution No. 6237374
RESOLUTION NO. 6237
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CYPRESS
OPPOSING THE GOVERNOR'S PROPOSAL TO ABOLISH
REDEVELOPMENT AGENCIES IN CALIFORNIA
WHEREAS, as part of his 2011 -12 budget proposal, the Governor has proposed
to permanently abolish California's 425 local redevelopment agencies; and
WHEREAS, the Governor's proposal represents a continuation of the same
misguided and illegal State budget raids of local government funds that voters have
repeatedly sought to end, including most recently in November 2010 when an
overwhelming 61 % of voters approved Proposition 22 and thereby elected to stop State
raids of local government funds, including redevelopment funds; and
WHEREAS, this proposal will bring very little financial benefit to the State, in that
according to the State Controller's Office, redevelopment agencies have more than $87
billion in bond and other contractual obligations that legally must be repaid before
revenues are available for any other purpose, and that according to the State
Department of Finance's own budget documents, there will be zero State savings in out
years from shutting down redevelopment; and
WHEREAS, the Governor's proposal to eliminate redevelopment agencies will
destroy local economic development, including hundreds of thousands of jobs and
billions of dollars in local economic activity throughout California; and
WHEREAS, in Cypress abolishing redevelopment would prevent and /or
substantially impact the following projects:
- Habitat for Humanity Project (Impact —loss of 15 affordable housing units)
- Motel Reuse /Replacement (Impact —loss of 50+ affordable housing units or
±50,000 sq. ft. retail complex)
- 1 acre Agency property by post office (Impact —loss of potential retail
development)
- LART 13 acre Agency site (Impact — loss of construction jobs associated with the
development of a 150,000 sq. ft. retail complex; loss of permanent
retail /service jobs following project completion)
- LART Project Area Development (Impact — hindrance of future mixed use
development of the 300 acre Los Alamitos Race Track property); and
WHEREAS, throughout California, redevelopment agency activities support
304,000 jobs annually including 170,600 construction jobs, contribute over $40 billion
annually to California's economy in the generation of goods and services, and generate
more than $2 billion in state and local taxes in a typical year; and
WHEREAS, eliminating redevelopment will take away the most significant tool
local governments have to comply with state requirements to plan for more compact
urban development supported by transit - oriented development, housing, jobs and
infrastructure; and
WHEREAS, eliminating redevelopment will destroy the development of
affordable housing in California because redevelopment agencies are the second
largest funder of affordable housing in California, behind only the federal government,
and are responsible for the development and preservation of over 98,000 units of
affordable housing since 1993; and
WHEREAS, the proposal to eliminate redevelopment agencies violates multiple
State and Federal constitutional provisions.
375
NOW, THEREFORE, the City Council of the City of Cypress resolves as follows:
Section 1. The City Council finds and determines as follows:
A. The foregoing Recitals are true and correct and are incorporated
herein.
B. The City of Cypress formally opposes the Governor's proposal to
eliminate local redevelopment agencies in California.
Section 2. The City Council, City Manager, and authorized staff designees are
hereby authorized to communicate the City's opposition to this budget proposal to the
Governor, the Legislature, business groups, and local citizens.
PASSED AND ADOPTED by the City Council. of t$ City of Cypress at a regular
meeting held on the 28th day of February, 2011.
ATTEST:
CITY CLERK OF THE CITY OF CYPRESS
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) SS
MAYOR F THE CITY OF CYPRESS
I, DENISE BASHAM, City Clerk of the City of Cypress, DO HEREBY CERTIFY
that the foregoing Resolution was duly adopted at a regular meeting of the said City
Council held on the 28th day of February, 2011, by the following roll call vote:
AYES: 4 COUNCIL MEMBERS: Bailey, Narain, Seymore, and Mills
NOES: 1 COUNCIL MEMBERS: Luebben
ABSENT: 0 COUNCIL MEMBERS: None
to /60_,0 441)11
CITY CLERK OF THE CITY OF CYPRESS