California Cities Unable to Recoup Millions in Loans to Redevelopment Agencies

May 26, 2012 Full story: www.whittierdailynews.com 47

In the last few weeks, cities have received notices from the state that they will not be able to collect hundreds of millions of dollars they loaned to their redevelopment agencies.

El Monte likely won't get paid back the $76 million it lent to its redevelopment agency over the last three decades. The city's annual general fund budget is about $50million. La Mirada is owed $29 million from its redevelopment agency, which is nearly as much as that city's entire $35 million yearly general fund budget. Duarte has $9.5million in outstanding loans from the city to its redevelopment agency, which adds up to about 80 percent of that city's annual general fund.

Ed. Note: Phone calls to Montebello City Hall were not returned in time for publication.

Full Story
The Ways

La Puente, CA

#27 Jul 13, 2012
Look at it this way, it's the way of the jungle.

Dog eat dog and the cities are the smallests.

Get us to it, happy days are just around the corner.
The piper

La Puente, CA

#28 Jul 13, 2012
These three cities are in the problem because they didn't take proper precautions, and spent the cities money like a bunch of drunks!

Three California cities have already been forced into bankruptcy, Stockton, Mammothlakes and Sna Bernadino.

More may be headed in that direction the last thing our communities need is a local city government literally balancing its budget on the backs of County and State governments.

They became dependent, like drug addicts on hand outs from County and State government programs.

Now it's time to pay the pipper.
Theolona Ranger

Los Angeles, CA

#29 Jul 15, 2012
Redevelopment Agency dissolution was another 'dent' in San Bernardino's financial condition

http://www.sbsun.com/sanbernardino/ci_2108118...

When redevelopment agencies evaporated on Jan. 1, San Bernardino found itself with needing to pay nearly $5million from its general fund to meet obligations that previously had been covered by RDA funds, said Jim Morris, son and chief of staff for Mayor Pat Morris.

The demise of redevelopment agencies "is huge and very complicated," said Michael Coleman, a fiscal policy adviser to the League of California Cities.

"The rules are changing quickly and capriciously," he said. "It is one of the many burdens city staffs are facing.
wecareinlm

Whittier, CA

#30 Jul 15, 2012
I'm pretty sure the city of La Mirada doesn't owe anything to the state from redevelopment funds because they never used them. They sat on them. Maybe a few, small projects like a strip mall on Alondra, etc., but overall, not much. Look at the Crossroads on Telegraph/Imperial/La Mirada Blvd. The blight has been there for years since Michaels moved to LH. Home Depot project fell through. Lucky for the Carriage restaurant after all the stuff they had to deal with. Both Green Hills strip malls are still an embarrassment and I know that was a project from 10 years ago. Ralphs closed and we were lucky that it's not vacant, thanks to Steinmart but because of a sales tax increase, it could be dead and gone soon too. And don't even bring up crappy Savers. We are a discount city because no redevelopment money was ever spent in "REDEVELOPMENT"! Don't worry about LM city coffers...they're/we're not going broke no matter how much they cry because they lost some money.

“Hilltop Park Above All”

Since: Sep 08

Montebello, CA

#31 Jul 15, 2012
wecareinlm wrote:
I'm pretty sure the city of La Mirada doesn't owe anything to the state from redevelopment funds because they never used them. They sat on them. Maybe a few, small projects like a strip mall on Alondra, etc., but overall, not much. Look at the Crossroads on Telegraph/Imperial/La Mirada Blvd. The blight has been there for years since Michaels moved to LH. Home Depot project fell through. Lucky for the Carriage restaurant after all the stuff they had to deal with. Both Green Hills strip malls are still an embarrassment and I know that was a project from 10 years ago. Ralphs closed and we were lucky that it's not vacant, thanks to Steinmart but because of a sales tax increase, it could be dead and gone soon too. And don't even bring up crappy Savers. We are a discount city because no redevelopment money was ever spent in "REDEVELOPMENT"! Don't worry about LM city coffers...they're/we're not going broke no matter how much they cry because they lost some money.
I believe La Mirada has its own Topix area. Can you relate your complaints to Montebello?
ytw

Alhambra, CA

#32 Jul 16, 2012
42 yr North Mtb resident wrote:
<quoted text>I believe La Mirada has its own Topix area. Can you relate your complaints to Montebello?
42 yr. North Montebello resident,

Would you please be more welcoming in your remarks to newcomers? Remember, this is a community forum provided by Topix.com . A lot of the people who visit here are first timers.

Thanks.
Specifics

Azusa, CA

#33 Jul 16, 2012
No need to be site specific, the news gets around. Who knows maybe more residets will get involved with their local governments?
Dan Salazar

Long Beach, CA

#34 Jul 16, 2012
Theolona Ranger wrote:
Redevelopment Agency dissolution was another 'dent' in San Bernardino's financial condition
http://www.sbsun.com/sanbernardino/ci_2108118...
When redevelopment agencies evaporated on Jan. 1, San Bernardino found itself with needing to pay nearly $5million from its general fund to meet obligations that previously had been covered by RDA funds, said Jim Morris, son and chief of staff for Mayor Pat Morris.
The demise of redevelopment agencies "is huge and very complicated," said Michael Coleman, a fiscal policy adviser to the League of California Cities.
"The rules are changing quickly and capriciously," he said. "It is one of the many burdens city staffs are facing.
Consider this a good thing. The quicker Cities declare Municipal bankruptcy the quicker the all consuming pension tsunami's will be renegotiated to sustainable amounts in balance with Public Empl compensation in the other States.

California is doomed if we don't go through this difficult process now. We elected the politicians who created this nightmare and must deal with it NOW rather than leaving the Hot Mess to our kids to clean up.
F L Boat

Azusa, CA

#35 Jul 16, 2012
California is trying to handle a economic quake, if we don't go through this difficult process now.

We elected those local city government politicians who created this nightmare so it's time to throw these bums off the 'free loader boat' and elect ethicial people in to clean this mess up.
nomorenew taxes

Whittier, CA

#36 Jul 16, 2012
Elect what we have and get what we have.
The only way to resolve cal problems is to go BK bring in someone with balls and isn't a politician and right the ship. Calif will be broke shortly and we can ask ourselves where were you when the feds took over.
NorWanker

Monrovia, CA

#37 Jul 16, 2012
NorWanker, get a grip and take care of your own house first.
NorWanker

Monrovia, CA

#38 Jul 16, 2012
NorWanker, take care of your own house first and stop blaming others.

Your starting to soun like one of those Tea Bagers!
wecareinlm

Whittier, CA

#39 Jul 16, 2012
42 yr North Mtb resident wrote:
<quoted text>I believe La Mirada has its own Topix area. Can you relate your complaints to Montebello?
Hey dummie...I AM on La Mirada Topix board. Why are you here?
Tricky Mitt

Monrovia, CA

#40 Jul 16, 2012
Willard Mitt Romney furnished just one year of past tax returns.

We know now that Willard Mitt Romney has tucked away potentially millions in a Swiss bank accounts and notorious tax havens like the Cayman Islands and Bermuda.

It all adds up to one great big "Tricky Mitt."

“Hilltop Park Above All”

Since: Sep 08

Montebello, CA

#41 Jul 16, 2012
wecareinlm wrote:
<quoted text>
Hey dummie...I AM on La Mirada Topix board. Why are you here?
Apparently, the La Mirada and Montebello Fora overlap. My mistake.
Free fire zone

Covina, CA

#42 Jul 17, 2012
Nothing is kept where it should be, local or other wise?

“Hilltop Park Above All”

Since: Sep 08

Montebello, CA

#43 Jul 17, 2012
Free fire zone wrote:
Nothing is kept where it should be, local or other wise?
Did you know that your city (Sierra Madre) sent'mutual aid' fire fighting assistance to the Montebello Oil Field Fire? Thanks!!
Theolona Ranger

Los Angeles, CA

#44 Jul 17, 2012
Does Not Sierra Madre have a volunteer FD?
Thanks SM
Topix regularly SPAM's multiple sites
Binders

Covina, CA

#45 Jul 17, 2012
Ya breaking my heart.
DOF rules

Monrovia, CA

#46 Jul 20, 2012
DOF - Department of Finance / California 2012..

California Cities’ ultimate fiscal liberation lies in what AB 1484 calls a “certificate of completion,” which DOF issues once a successor agency has paid off all of the money it owes to the state and to local taxing entities.

This includes the equivalent of the former 20% set-aside that it must pay into the Low-Moderate Income Housing Fund.

Upon receiving a certificate of completion, cities and successor agencies receive the following benefits:

* Loan agreements entered into by cities and former redevelopment agencies are considered enforceable obligations so long as oversight boards deem them to have been for legitimate public purposes. Critics had contended that cities had loaned money to redevelopment agencies—and vice-versa—in order to shield money from the state. But some note that these loans were intended to help cities and RDA’s avoid bonding or bank loans, which would have incurred higher interest rates.

* Bond proceeds from bonds issued by the end of 2010 may be used for the bonds’ original intended purposes, according to their bond convents. The prospect of having to defease bonds—at considerable expense—was considered one of the more egregious oversights of AB 1X 26.

* Successor agencies do not have to conduct a fire sale to liquidate real property assets, as many had feared, and may retain properties for public purposes; those purposes can include redevelopment plans and even sale at a later date. Properties may be transferred to cities. Successor agencies must draft property management plans, to be approved by their oversight boards and DOF.

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