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HomeMy Public PortalAbout2011.051 (03-01-11) RESOLUTION NO. 2011.051 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD, CALIFORNIA OPPOSING THE GOVERNOR'S PROPOSAL TO ABOLISH REDEVELOPMENT AGENCIES IN CALIFORNIA WHEREAS, as part of the Governor's FY 2011-12 budget proposal, the Governor has proposed permanently abolishing California's more than 400 local redevelopment agencies; and WHEREAS, this proposal represents more of the same misguided and illegal State budget raids of local government funds that voters have repeatedly sought to end; most recently in November 2010, when an overwhelming 61 % of California voters elected to pass Proposition 22 to eliminate State raids of local government funds, including redevelopment funds; and WHEREAS, this proposal will bring very little financial benefit to the State. 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. In fact, 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, this proposal will have disastrous impacts on local economic development, including hundreds of thousands of jobs and billions of dollars in local economic activity throughout California. In fact, in the City of Lynwood where an estimated 85% of our $2.2 million in sales tax revenues are generated by businesses in our redevelopment project areas, abolishing redevelopment will: augment our already- high 20% unemployment rate which will result in losing thousands of jobs, loss of critical sales tax revenues, loss of retail businesses and economic investment opportunities, and will surely result in public infrastructure deterioration; and WHEREAS, throughout California, redevelopment 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 one of the few tools 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. Redevelopment agencies are the second largest funder of affordable housing, behind only the federal government, responsible for over 98,000 units of affordable housing since 1993; and WHEREAS, this proposal will also contribute to the proliferation of hazardous contaminated sites in cities across California, in which redevelopment agencies are largely responsible for environmental remediation and clean-up efforts in our communities and in fact, the City of Lynwood has numerous sites that require significant environmental remediation before land can be used for productive use; and WHEREAS, shutting down redevelopment agencies is a clear violation of multiple State and Federal constitutional provisions, including the recently passed Proposition 22. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD HEREBY RESOLVES AS FOLLOWS: Section 1. By adoption of this resolution, the City of Lynwood formally opposes the Administration's proposal to abolish redevelopment in California. Section 2. The City Council authorizes its City Manager, City staff and/or any advocacy organization or contracted lobbyist to communicate the City's opposition to this proposal to the Governor, the Legislature, business groups, and citizens. Section 3. This Resolution shall be effective immediately upon its adoption. Section 4. The City Clerk shall certify as to the adoption of this City Council Resolution. PASSED, APPROVED and ADOPTED this 1 day of March, 2011. ; � ' _._. ' �.- I Aide Castro, Mayor ATTEST: L�i�- � Maria Quinonez, City Clerk Roger L. aley, ity Manager APPROVED AS TO FORM: APPROVED AS TO CONTENT: �� -� %�, ,�` Fred Ga ante, City Attorney Robert S. Torrez, A istan ity Manager STATE OF CALIFORNIA ) ) SS. COUNTY OF LOS ANGELES ) I, the undersigned, City Clerk of the City of Lynwood, do hereby certify that the foregoing Resolution was passed and adopted by the City Council of the City of Lynwood at a regular meeting held on the 1 day of March, 2011. AYES: COUNCIL MEMBERS FLORES, RODRIGUEZ, SANTILLAN, MORTON AND CASTRO NOES: NONE ABSENT: NONE ABSTAIN: NONE ��. aria Quinonez, City Clerk STATE OF CALIFORNIA ) ) SS. COUNTY OF LOS ANGELES ) I, the undersigned City Clerk of the City of Lynwood, and the Clerk of the City Council of said City, do hereby certify that the above foregoing is a full, true and correct copy of Resolution No. 2011.051 on file in my office and that said Resolution was adopted on the date and by the vote therein stated. Dated this 1 day of March, 2011. � � Maria Quinonez, City Clerk