Redevelopment and Transbay
|December 30, 2011||Posted by jamie under Activism, Transbay Transit Center||
You’ve probably read that the worst case scenario regarding the future of redevelopment agencies in California has happened. The California Supreme Court upheld the dissolution of agencies and tossed out the so-called “extortion option” legislation that would have allowed redevelopment agencies to continue pending an annual payment to the state.
What this means for the Transbay Redevelopment Project Area and other redevelopment projects that are sorta in-progress is unclear right now. The property tax increment from new developments in redevelopment project areas are usually the security behind bonds that get sold up front to build the infrastructure that make an area work. That powerful financing tool is effectively gone.
While some redevelopment agencies in California really made a bad name for those types of entities, the San Francisco Redevelopment Agency has been responsible for almost all of the new public parks (think of Mission Creek Park or Yerba Buena) and most of the affordable housing. I’m not sure what fills that gap in the future, but we need to pay close attention as a neighborhood that includes a redevelopment project area (Transbay).