Tesla Motors electric vehicle
We have all read that the Obama Administration has thrown megabucks at various bailouts in an effort to create jobs. While I won’t debate the $300 million federal subsidy to Tesla Motors to produce electric cars, for our Local Government Committee to vote unanimously, 9-0, to create a redevelopment area by legislative fiat, when Tesla was not seeking this support, is unconscionable.
Members of our Legislature have engaged in the city of Downey decision making by creation of an urgent bill that involves a $30 million dollar subsidy to Tesla Motors whom I understand did not request this handout. Eventually that tax increment will be taken away from LA County at a time when services throughout the state are being cut or eliminated entirely.
Should AB 2065 become law, and the city of Downey creates a project area for Tesla that is not subject to a Referendum or CEQA challenge, confirms that we have socialists on both sides of the aisle in our state Legislature.
From what I have been able to ascertain, the next step in the legislative process for Charles Calderon/Hector DeLa Torre’s AB 2065 is the Appropriations Committee.
Included in the Bill is the following text:
“This bill would authorize the redevelopment agency of the City of Downey to add described territory to a redevelopment project area within the city upon the adoption of an ordinance adopted by the city council that contains specified time limitations and restrictions.
The bill would exempt the adoption of the amendment of the redevelopment plan to add the specified territory of the City of Downey from various requirements. The bill would authorize the agency to subordinate to bonded debt the amount required to be paid to an affected school entity upon a finding that the agency will have
sufficient funds available to pay both the bonded debt payments and the required payments.
The bill would make a legislative declaration regarding the need for a special statute.”
“The bill would make a legislative declaration regarding the need for a special statute.
This bill would declare that it is to take effect immediately as an urgency statute.”
I am disappointed to see three Republican members of this committee, Knight, Logue and Chairman Cameron Smyth, voting in lock step with the Democrats and one Independent member to usurp local voters due process by this power grab where the citizens cannot challenge the bogus finding of blight.
Solario is on Appropriations, lets call his office. Where’s that number now…
The trouble is the site where Tesla is considering (the deal has NOT been signed) is in dire need of a project like this. Redevelopment dollars were thrown at the neighboring shopping centers and Anchors were signed (Depot, Target, BBB and the usual retailers). When EBUS failed, Downey studios bailed, these businesses and the promised/expected revenues never developed, it caused a double whammy. Now, Linens and things, and Another retailer pulled out, nobody in the center is making money.
What to do????
kenlaysnotdead.
Everyone suffers in recessions.
So your answer is to create 40 year bond debts for our grandkids to pay for long after we are gone.
How many cities in our state borrow money from their general fund to cover redevelopment agency debt service?
Our 2010 booklet,Redevelopment: The Unknown Government, should be out by July 4th. Statewide bonded indebtedness is approaching the national debt. Well, not really. Last reported number to be added.
Looks like I was just a bit early. The deal for Downey is DEAD:
http://www.sfgate.com/cgi-bin/blogs/bottomline/detail?entry_id=64051
We did’nt need those 2,500 jobs Larry. To be sure, Downey is NOT Mission Viejo!
kenlaysnotdead
The picture I paint goes beyond the city of Downey. Should the legislature engage in cutting out our opportunity to challenge future redevelopment project areas where there is no evidenciary finding of blight is troubling for those of us who track these projects.
Having our corporate office in Santa Clara I am very familiar with the former auto manufacturing plant in Freemont. Thanks for the update.
As to your closing comments about Downey, Mission Viejo and jobs.
When I really worked for a living one of my good accounts was Rockwell Downey.
We should also be kind to Downey based on my research comparing Mission Viejo’s $300,000-$400,000 waste of taxpayer funds for a Rose Parade float to their approach.
Downey’s 2008 entry had the distinction of being one of the only six floats which come under the parade classification of self-built. This classification means their float was completely financed, constructed and decorated by volunteer contributions and help.”
Note: Above paragraph text from my prior Downey post.
And where did you ever see my opposition to job creation, be it in Mission Viejo or elsewhere?
While the state of CA is drowning in red ink, our Redevelopment:The Unknown Government booklet will shortly report a jump in bonded indebtedness statewide from $61 billion to $93 billion over the past two years. “Tax increment” diverted in hundreds of redevelopment project areas takes funds away from much needed services at a time when the entire state is hemorraging.
I have to agree with Larry on this one (we do occasionally agree on things). Legislating away private property protections as well as ignoring the mandates of CEQA (the environmental Holy Grail) is not the way to spur development in a community. In fact, it guarantees slip-shod projects with little concern for planning and more concern for good PR.