Jul 23, 2009

The City of Industry gambit

The budget deal struck by the governor and the leaders of the state Legislature included a provision to allow cities to extend the lifespan of redevelopment zone by 40 years, provided the cities pass 10 percent of their earnings on to the state. Observers argue the provision is designed to help out one specific project, the planned NFL stadium in the City of Industry.

From the Los Angeles Times:
...adding decades to the life of the redevelopment area would allow Industry to use hundreds of millions of taxpayer dollars to build roads, sewers and other facilities to help accommodate the stadium and commercial projects, said Christine Minnehan, legislative director of the Western Center on Law and Poverty.
The County of Los Angeles has already moved to sue the state to block the provision from taking effect. The San Gabriel Valley Tribune quotes County Supervisor Zev Yaroslavsky:
Opponents said the state is violating the Constitution because redevelopment money is only allowed to be invested in blighted neighborhoods.

"They've done their job," Yaroslavsky said of Industry's redevelopment agency. "They've removed their blight. Instead you're providing subsidies to private landowners."

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