LAKE COUNTY — In an annual report given Tuesday, Lake County Redevelopment Agency (RDA) executive director Kelly Cox told the county board of supervisors, sitting as the RDA board of directors, that assessed value of property in the RDA”s project area increased by 58 percent since 2002.
“That has resulted in the redevelopment agency getting more revenue than we anticipated,”Cox said.
The RDA has an $8,567,027 budget to work with this fiscal year, including tax increment funds from property values, grants for special projects and anticipated loans, Cox said.
The money comes from a property tax base established in June of 2001, when the Northshore project area was formed.
The RDA, a separate entity from the county government, can form a project area anywhere in the county. It has only gone through the legal process for the communities of Upper Lake, Nice, Lucerne, Glenhaven and Clearlake Oaks.
“We did estimate the amount the increase would be over the base rate, and it”s prudent to be conservative so you don”t exceed your income. We did factor in growth, but I don”t think in anyone”s wildest imagination it would”ve been almost 60 percent,” Deputy RDA director Eric Seely said.
“A portion of that is due to redevelopment activities, but a big portion goes to outside factors, the booming real estate market drove the increase, and the number of sales. Our project didn”t result in an increase in property values across the board. We could argue that we”ve increased property values in close proximity to redevelopment activities,” Seely said.
Projects in those areas range in the millions of dollars. Seely said a revitalization project for Upper Lake”s Main Street is estimated to cost $2 million. It will include running utility wires underground, additional sidewalk, street lights and an arch at the entrance off of Highway 29. Projects that will create plazas, or town centers, in Lucerne and Clearlake Oaks are estimated to cost $1 million apiece.
The RDA aims to fund itself by generating economic growth in blighted areas, Cox explained in a Wednesday interview. “The philosophy behind it is that growth is the the result of the redevelopment agency”s activities in the redevelopment area,” Cox said. “Without that (RDA activity), the growth wouldn”t have occurred and we wouldn”t have had that revenue.” Cox said under Prop. 13, property can be reassessed at current market value when it is sold or when new construction happens. The county tax assessor”s office reappraises the property and 80 percent of the increase above the property”s value prior to June 2001 goes to the RDA. The other 20 percent is passed on to government entities such as schools and fire departments.
Cox said the idea is to create incentive for businesses to invest in blighted areas. “That generates jobs, generates more property tax revenue and pays us back,” Cox said.
Contact tiffany Revelle at trevelle@record-bee.com.
