California Governor Jerry Brown began deliberations with the Legislature over dissolving the state’s 400 redevelopment agencies in the winter of 2011, and by June of that year they finalized the legislation. The abrupt demise of California’s massive multi-billion dollar local planning instrument has left many cities with administrative gaps in their economic development initiatives, and nearly $2 billion remain in limbo while local governments struggle to keep funds in their jurisdiction.
Sacramento contests that local redevelopment agencies were choking off much-needed revenue for state services with little benefit to the state at large, while local governments defended them as powerful tools for revitalizing urban centers and propagating ‘smart urbanism’. The move has pitted competing interests of public agencies against each other in a debate over who is best suited to take on their planning responsibilities.
A redevelopment area is a special development district similar to enterprise zones, incremental tax finance districts, cultural districts and others, with several significant characteristics that set them apart. California redevelopment areas were designated by local municipal governments – typically a city or town, but sometimes counties as well – and they allowed the local government to capture a greater share of property taxes while reducing the private cost burden of new developments.
Sacramento contests that local redevelopment agencies were choking off much-needed revenue for state services with little benefit to the state at large, while local governments defended them as powerful tools for revitalizing urban centers and propagating ‘smart urbanism’. The move has pitted competing interests of public agencies against each other in a debate over who is best suited to take on their planning responsibilities.
What is a Redevelopment Project Area?
A redevelopment area is a special development district similar to enterprise zones, incremental tax finance districts, cultural districts and others, with several significant characteristics that set them apart. California redevelopment areas were designated by local municipal governments – typically a city or town, but sometimes counties as well – and they allowed the local government to capture a greater share of property taxes while reducing the private cost burden of new developments.






