Redevelopment

State officials are correct in saying that local redevelopment agencies “sapped money from schools in the name of economic development that rarely materialized in any justifiable way” (“City knocks state payout,” June 17). Earlier this year, Assemblyman Mike Gatto (D-Silver Lake) was also correct when he said that redevelopment agencies “have become government subsidies for developers” (“The clock winds down,” Jan. 15). When California's redevelopment agencies began, their purpose - to provide affordable housing and eradicate blighted areas - was a noble endeavor.

The city of Burbank on Thursday received roughly $7.5 million out of the $38 million in affordable housing funds the state ordered it to turn over last month as part of the dissolution of local redevelopment, officials said. The money will go to the city's General Fund, which pays for most public services. The $30.5 million that ultimately was kept will be distributed to more than a dozen other taxing entities, including the Burbank Unified School District. As part of the wind-down process of the more than 400 local redevelopment agencies, the state ordered cities to hand over unspent redevelopment funds that had been set aside for affordable housing projects.

State finance officials have ordered Burbank to hand over $42 million in former redevelopment funds for distribution to taxing entities, stunning city officials who in January had pegged a far lower tab of $11.7 million. “We were very disappointed,” Ruth Davidson-Guerra, assistant community development director, said of the state order issued last week. Early Friday, city officials sent the California Department of Finance - which is overseeing the statewide closure of local redevelopment operations - a memo requesting a meeting to dispute all the funding requests except the $11.7 million they originally identified.

Burbank identified roughly $11.7 million this week in funds that are available to turn over to Los Angeles County for distribution to other taxing entities as part of the dissolution of local redevelopment, officials said. A large chunk of the unused, non-housing redevelopment funds - $7.1 million - had been allocated for infrastructure projects along the North San Fernando Boulevard and the Victory Boulevard corridors. But since the money wasn't contractually committed, the Successor Agency Oversight Board - created to wind down redevelopment-related obligations and assets - determined the funds were available for distribution, said Ruth Davidson-Guerra, Burbank's assistant community development director.

State finance officials this week approved the sale of the IKEA property, putting the Swedish furniture giant one step closer to nearly doubling its current operation in Burbank and building its largest retail store in the U.S. The move - in which local developer Crown Realty and Development will acquire and redevelop IKEA's current digs - is still predicated on Burbank complying with stipulations included in winding down local redevelopment operations,...

DEBT REPAYMENT The council approved an ordinance on Tuesday to extend debt-repayment deadlines for redevelopment projects in the Golden State, City Centre and West Olive areas of Burbank. This modification of the redevelopment agency's plans is an attempt to mitigate the financial impacts of state legislation that requires agencies to make payments to the county auditor to reduce the state's education-budget shortfall. WHAT IT MEANS The resolution gives the redevelopment agency an extra year to complete its projects, collect taxes and repay debt accumulated through project costs.

We have had fantastic growth for a couple of decades, much of it credited to the work of redevelopment agencies and the investment of local governments. But then the state ended redevelopment and siphoned off millions of local government dollars. Glendale and Burbank invested millions of dollars into redevelopment, and now suddenly have no claim to that money. It's gone. Completely wasted. It places landmarks like the Alex Theatre in danger of being sold. Our assemblyman, Mike Gatto, voted for that.

Mark R. Madler The administration of new Los Angeles Mayor Antonio Villaraigosa has tapped former Burbank City Manager Robert "Bud" Ovrom as its point man on economic development and housing issues. As deputy mayor for community and economic development, Ovrom will put an emphasis on creating jobs and affordable housing in Los Angeles. Villaraigosa's vision for economic development extends to promoting tourism and increasing international trade through the Port of Los Angeles, Ovrom said.

Lolita Harper BURBANK -- Howard Rothenbach has been watching the Burbank City Council for years, and he is not pleased with the direction it's going on airport and redevelopment issues. That's why Rothenbach, 55, is running for one of the three seats up for election. Burbank's primary election is Feb. 27. "I'd like to be involved in changing that direction to be more in line with the interests of the people," Rothenbach said. Although it is his first run for a seat on the council, Rothenbach believes that his experience as founder and chairman of Restore Our Airport Rights (ROAR)

Burbank city officials say they may sue over being forced to turn over millions of dollars to the state as a result of closing down local redevelopment operations. Per the California Department of Finance's request, Burbank cut a $24.3-million check to Los Angeles County on Friday as part of the dissolution of local redevelopment. But $10.5 million of that - which includes part of the debt reimbursement to the city from the redevelopment agency - was turned over under protest, which means the city could sue in the future to get it back, officials said.

State finance officials this week reduced Burbank's bill for dissolving its redevelopment agency by nearly half - from $42 million to $24.3 million. The change came after city officials contested the state's demands as too harsh. "We're happy that at least Department of Finance took to heart most of our arguments," said Ruth Davidson-Guerra, assistant community development director. "To have to write a check for $24 million to the county is a lot better than $42 million. " The final bill is still far more than the $11.7 million Burbank officials argued they owed as they and cities across the state close down their redevelopment operations.

State finance officials have ordered Burbank to hand over $42 million in former redevelopment funds for distribution to taxing entities, stunning city officials who in January had pegged a far lower tab of $11.7 million. “We were very disappointed,” Ruth Davidson-Guerra, assistant community development director, said of the state order issued last week. Early Friday, city officials sent the California Department of Finance - which is overseeing the statewide closure of local redevelopment operations - a memo requesting a meeting to dispute all the funding requests except the $11.7 million they originally identified.

State finance officials this week approved the sale of the IKEA property, putting the Swedish furniture giant one step closer to nearly doubling its current operation in Burbank and building its largest retail store in the U.S. The move - in which local developer Crown Realty and Development will acquire and redevelop IKEA's current digs - is still predicated on Burbank complying with stipulations included in winding down local redevelopment operations,...

Burbank identified roughly $11.7 million this week in funds that are available to turn over to Los Angeles County for distribution to other taxing entities as part of the dissolution of local redevelopment, officials said. A large chunk of the unused, non-housing redevelopment funds - $7.1 million - had been allocated for infrastructure projects along the North San Fernando Boulevard and the Victory Boulevard corridors. But since the money wasn't contractually committed, the Successor Agency Oversight Board - created to wind down redevelopment-related obligations and assets - determined the funds were available for distribution, said Ruth Davidson-Guerra, Burbank's assistant community development director.

The city of Burbank on Thursday received roughly $7.5 million out of the $38 million in affordable housing funds the state ordered it to turn over last month as part of the dissolution of local redevelopment, officials said. The money will go to the city's General Fund, which pays for most public services. The $30.5 million that ultimately was kept will be distributed to more than a dozen other taxing entities, including the Burbank Unified School District. As part of the wind-down process of the more than 400 local redevelopment agencies, the state ordered cities to hand over unspent redevelopment funds that had been set aside for affordable housing projects.

Stripped of its redevelopment funds and faced with ever dwindling federal grants, Burbank is having to rethink its approach to affordable housing. The city recently reserved roughly $402,000 for future affordable housing projects, bumping its total to $1.2 million - far less than the $8 million or so officials typically had to work with each, said Ruth Davidson-Guerra, assistant community development director. “Never before have we been faced with this kind of challenge,” she said.

The City Council this week approved Burbank's $636-million budget after closing a $1.3-million gap - a relatively small wound compared to other cities that have been hit especially hard by the loss of local redevelopment. The $1.3-million budget gap was less than last year and did not require lay-offs. Compare that to Glendale, which is struggling to close a projected $15.4-million gap through a mix of lay-offs and early retirements. While acknowledging that Burbank is in a “much better” condition than other cities, Financial Services Director Cindy Giraldo told the City Council on Tuesday that “our work is not over.” “Staff will continue to explore options to reduce costs, improve efficiencies and enhance revenues so that we can better position the city for the future,” she said.

We have had fantastic growth for a couple of decades, much of it credited to the work of redevelopment agencies and the investment of local governments. But then the state ended redevelopment and siphoned off millions of local government dollars. Glendale and Burbank invested millions of dollars into redevelopment, and now suddenly have no claim to that money. It's gone. Completely wasted. It places landmarks like the Alex Theatre in danger of being sold. Our assemblyman, Mike Gatto, voted for that.

State officials are correct in saying that local redevelopment agencies “sapped money from schools in the name of economic development that rarely materialized in any justifiable way” (“City knocks state payout,” June 17). Earlier this year, Assemblyman Mike Gatto (D-Silver Lake) was also correct when he said that redevelopment agencies “have become government subsidies for developers” (“The clock winds down,” Jan. 15). When California's redevelopment agencies began, their purpose - to provide affordable housing and eradicate blighted areas - was a noble endeavor.