The San Diego County Grand Jury endorsed San Diego city's 54-year effort a redevelopment, even as it mourned its state-ordered demise.
"The grand jury concluded that the taxpayers of San Diego did, indeed, get value for their property tax dollars in the contributions their redevelopment agency made to the city," the jury said in its April 30 report.
But the jury noted that the city is left with nearly $2.4 billion in debt tied to numerous ongoing projects, such as Petco Park and the 2001 San Diego Convention Center expansion.
"The grand jury recommends that Mayor Bob Filner personally lead a comprehensive, impactful advocacy effort to assure that the state fulfills this responsibility (to see that debts are paid) and the interests of the city of San Diego are well represented," the jury said.
The state ordered the dissolution of more than 400 redevelopment agencies last year as a way to reduce the state's budget deficit by a projected $1.8 billion. The money was returned largely to school districts, and relieved the state of filling the gap left by diverted taxes for redevelopment.
The state currently reviews post-redevelopment spending to cover certain debt obligations and can override items it deems disqualified. About $13 million in convention center and ballpark bond payments are examples of disallowed payments. The city general fund has had to make up the difference.
The grand jury took note of many redevelopment projects that it said successfully reduced blight and advanced economic development downtown and in many suburban neighborhoods. It cited as examples Horton Plaza shopping center, the new Central Library, now nearing completion, affordable housing, City Heights Urban Village, the Naval Training Center's conversion to Liberty Station and the North Park Theatre.
"Redevelopment in San Diego is unfinished business. Literally!" said the jury. "When San Diego's redevelopment agency was dissolved, many projects that were under way were left unfinished."
The jury recommended Civic San Diego, set up to wind down redevelopment, form a specialized work group to find new funding sources for those unfinished projects. Member said some of the funds should come from the city's share of redevelopment property taxes dispersed back to its general fund. So far the city has not made such a commitment, although it has used the funds, about $17 million this year, to cover the convention center and Petco bonds. The mayor also has backed spending $400,000 in city funds to install two new public restrooms downtown -- a project previously intended to be financed through redevelopment.
The jury did not discuss the views of many redevelopment critics, who objected to using of eminent domain to acquire sites; concentrating redevelopment funds on downtown projects rather than sharing them with other redevelopment project areas; and spending high amounts on subsidies for some affordable housing projects.
Instead, the jury recommended the city survey other states to see what alternate redevelopment concepts might be applied locally.
"The strong encouragement and unequivocal support of redevelopment efforts that have characterized past city administrations should be continued," the jury said.
Filner has called on Civic San Diego to broaden its view citywide, even suggesting its name be changed to "Neighborhood San Diego."
Coincidentally, CivicSD recently received approval for $35 million in federal new markets tax credits that could be used to help underwrite commercial projects. The jury cited this program as one example of a non-redevelopment funding approach.
City Council President Todd Gloria also has launched a look at floating perhaps a billion-dollar infrastructure bond issue to address projects that redevelopment funds previously might have supported.
http://www.utsandiego.com/news/2013/may/01/grand-jury-redevelopment/
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