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HomeMy WebLinkAboutAGENDA REPORT 1993 0407 CC REG ITEM 08PITEM 9R. pe tfOORPARK, CALIFOWA Gty Cou II Meetng of W 1 qq'� 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.