HomeMy WebLinkAboutAGENDA REPORT 1993 0407 CC REG ITEM 08PITEM 9R. pe
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ACTION:
AGENDA REPORT
CITY OF MOORPARK
TO: Honorable City Council
FROM: Mary K. Lindley, Assistant to the City Managert�,
DATE: April 1, 1993 (CC Meeting of April 7)
SUBJECT: Consider Opposition to Assembly Bill 978,
Restrictions on Agencies and Reallocation of Sales
Tax
Assembly Bill 978 was introduced by Assembly Member Dan Hauser.
This bill is being opposed by the League of California Cities and
the California Redevelopment Association. As written, AB 978 would
implement the following policies:
Require cities to transfer to recipient cities 30 percent
of all new sales tax revenue, above a base year amount,
generated by any retailer who locates within a
redevelopment project area and who receives any form of
"assistance" from a redevelopment agency. Recipient
cities would be all cities in the same county whose sales
tax receipts are below the statewide average. This
provision would penalize any effort by a city to
rejuvenate its downtown business district.
Prohibits agencies from including more than 60 percent of
the city within a redevelopment project area, and
prevents any new debt issuance until existing project
areas are reduced to no more than 60 percent. This
provision appears to be arbitrary and does not
acknowledge that there may be smaller communities that
are entirely blighted.
• Denies the use of redevelopment funds for the
construction of city or county administration offices if
the offices constitute more than 20 percent of the
structure. This provision overlooks the stimulative
Oppose Assembly Bill 978
March 31, 1993
Page 2
value of public investment in a blighted downtown which
is represented by the location of a city hall or other
public facility.
Provides authority to finance commercial, residential, or
industrial development outside the city, but within the
city's sphere of influence. With respect to commercial
or industrial development, the potential exists that a
county could ask for infrastructure improvements in the
unincorporated area to be financed by a city's
redevelopment agency. If there are blighted areas in the
unincorporated areas of the county, a county
redevelopment project area should be adopted and the
blight should be remedied by a county project and not a
city project.
Staff recommends that Council oppose AB 978 as currently written
and request that Assembly Member Hauser work with the League of
California Cities to amend the bill to address the concerns
expressed above.
Recommendation
Staff recommends that Council direct the Mayor to send a letter to
Assembly Member Hauser expressing the City's opposition to AB 978
as currently written and urge that the bill be amended to address
the concerns outlined in the staff report.