CLEARLAKE ? The Clearlake City Council gave authorization Thursday for submitting a request to the California Department of Housing and Community Development (HCD) to extend the implementation period of the Redevelopment Agency (RDA) plan for an additional 10 years. The motion passed on a 4-1 vote count with Councilmember Roy Simons casting the dissenting vote.
“I wouldn”t necessarily be opposed to the amendment if I could see something positive before the end of the implementation time, but I don”t see that happening,” Simons said. “I think the best thing we can do is forget the failure and get on with our lives.”
The purpose of the RDA is to assist city and county governments in eliminating blight from a designated area and to achieve desired development, reconstruction and rehabilitation including residential, commercial, industrial and retail land use. An RDA must first establish a development area before it can undertake any of the activities allowed for RDA under California law. A proposed project area must be blighted and the existence of that blight must be definitively demonstrated.
RDA activities are funded through tax increment financing (TIF). When a development area is formed, the property tax values on the tax roll at the time of formation become a property tax base for redevelopment funding purposes. Efforts of the RDA are expected to improve economic, environmental, social and structural conditions in the project area and therefore property values will presumably increase. As these values increase, a portion of the value in excess of the “base year” becomes the incremental assessed value or tax increment revenue, which is used by the RDA to fund its activities. In this way, an RDA receives funding for further activities only if it is successful in improving the area”s overall economic health and vitality.
RDAs are required by law to designate and spend at least 20 percent of its tax increment funds on low- and moderate-income housing.
Throughout his tenure as a Clearlake City Council person, Simons adamantly voiced disappointment in the result, or lack thereof, of the Redevelopment Agency.
He said one thing that he has continuously pushed for is the formation of an assessment district for obtaining curb, gutter and sidewalk on Lakeshore Drive. “If you can show me we can create one assessment district that will do some good, then I won”t object,” he said. “If you can”t do that then I will fight this amendment all the way.”
Simons has also voiced opposition to the purchase of property by the RDA.
“We”ve actually done some harm purchasing properties and taking them off the tax roll. That really doesn”t do any good,” he said.
While City Administrator Dale Neiman did not voice opposition to Simons” assessment he said that obtaining curb, gutter and sidewalk on Lakeshore Drive would take investment by private business and would not generate any tax increment revenues. He said sale and development of the airport property, which is an RDA investment, would generate a significant amount of sales tax and tax increment revenues.
Fellow councilmembers did not argue with Simons” assessment either in that the RDA has not been met with much success. “I agree not much has been done with the Redevelopment Agency but we have a future and I see improvements,” Mayor Chuck Leonard said. “We can”t just sit and not do anything.”
Councilmember Joyce Overton suggested re-approaching businesses owners on Lakeshore Drive in effort to gain support in gaining curb, gutter and sidewalk. She said she doesn”t oppose amending the RDA plan but would not like to see business on Lakeshore Drive suffer as a result of other business development. She also said she would like to see a plan for the RDA. “I”m for extending this but we need a goal; we need a plan for what we”re going to do,” she said.
Neiman said that he”s has spoken with HCD staff and that he foresees no problem in gaining the department”s approval in the city”s request to extend the implementation period.
The extension would provide the RDA with an additional 10 years to realize effectiveness in the program.
Contact Denise Rockenstein at drockenstein@clearlakeobserver.com or call her directly at 994-6444, ext. 11.
