Redevelopment

A Sacramento County Superior Court judge Wednesday afternoon refused to side with a group of California cities in their battle with the state over hundreds of millions of property tax dollars that used to flow to local redevelopment agencies. Judge Timothy M. Frawley said he would not grant the request from Huntington Beach, Glendale, Pasadena and other cities for an injunction that would have prevented the payout of property taxes Friday to schools and other local governments.

While the word redevelopment has struck fear into hearts of many Southeast Huntington Beach residents -- who suddenly had visions of more industrial giants billowing pollutants and of a city government turned overly powerful -- the designation could mean a needed revitalization to the area. Residents, who have long felt that their section of the city has been a dumping ground of sorts, are equally eager and skittish. The City Council will have to act wisely, openly and carefully to ensure that the fears of redevelopment don't develop into reality for those living within this zone, which is bounded by Newland Street to the west, Hamilton Avenue to the north, Magnolia Street on the east and Pacific Coast Highway on the south.

John Scott The Cityscape Roundup headline in the Independent on April 3 read, "Southeast area sets its priorities." That headline leaves the impression that Southeast Huntington Beach is united behind the committee's priorities. The reality is that the vision the committee has for this area and the vision that residents of the area have are very different. The committee's initial meetings here always began with a redevelopment presentation after which residents were invited to share their views.

Tariq Malik John Thomas was a two-term councilman, serving from 1978 to 1986. He and his family have been residents for about 35 years and have operated a local business for 40 years. Thomas said he can use the practical knowledge he's garnered from his business life and time on the City Council to attract new businesses into Huntington Beach. While Thomas is concerned about crime, redevelopment and the preservation of the Bolsa Chica wetlands and other coastal environments, drawing new business into the city will provide a number of benefits.

ON THE AGENDA Here are some of the items the council will consider Monday at their meeting: SALE OF 214 5th ST. The council, acting as the redevelopment agency, will consider approving one of two buyers for the city-owned parcel at 214 5th St. It is being recommended that that LGB Investments, LLC, be selected as buyer rather than developer Robert J. Koury. No projects are yet proposed for the empty lot, which is zoned multi-use and, like most properties Downtown, must have walk-in commercial retail on the first floor and residence or offices on the second floor.

Jose Paul Corona The Strand project, slated to revamp Downtown Huntington Beach, was given the green light by the City Council Monday night by a 4-2 vote. Unless an appeal of plans for the 226,500-square-foot project is filed with the California Coastal Commission, it will be built. James A. Lane, spokesman for the project's main opposition, a group called Citizens Against Redevelopment, said they have not yet decided if they will mount opposition.

Kenneth Ma HUNTINGTON BEACH -- Nearly 500 signatures have been collected by Burlington Coat Factory in its attempt to stay on as a tenant at the soon-to-be-redeveloped Huntington Center. The company placed a full-page advertisement in the Independent July 6 asking people to sign a petition at its Huntington Beach store and to call members of the City Council, Planning Commission and city staff to support Burlington's efforts to be part of the new mall, which will be renamed The Crossings at Huntington.

Jenny Marder To some, Perqs is a seedy, prehistoric dive bar that detracts from the upscale image that city officials are working to promote Downtown. But for Babette Comee, Perqs is a haven, homey and unpretentious, the essence of Surf City history. A former brothel, local hangout and home to legendary blues guitarist Walter Trout, Perqs bar at 117 Main St. is the oldest bar in Huntington Beach. So old that owners aren't required to serve food with alcohol, as they are in every other bar Downtown.

Despite the loss of $1.4 million in redevelopment funds, Fountain Valley is once again balancing its budget and is expected to end the next fiscal year with a surplus and no layoffs or major cuts of services. The City Council on Tuesday passed a $36-million operating budget, with a projected $132,000 surplus by the end of the 2013-14 fiscal year. "We're operating everything on a shoestring, but we're still providing all the services and we're living within our means," said City Manager Ray Kromer.

A Sacramento County Superior Court judge Wednesday afternoon refused to side with a group of California cities in their battle with the state over hundreds of millions of property tax dollars that used to flow to local redevelopment agencies. Judge Timothy M. Frawley said he would not grant the request from Huntington Beach, Glendale, Pasadena and other cities for an injunction that would have prevented the payout of property taxes Friday to schools and other local governments.

The state Department of Finance is refusing to pay back millions of dollars Huntington Beach once loaned to its now-disbanded redevelopment agency, a decision that may lead to litigation and leave a large hole in the city's general budget. Following a decision in December by the state Supreme Court that declared the state's redevelopment agencies (RDAs) unconstitutional, cities began submitting listings of legally binding agreements or contracts the disbanded agencies had to their county auditors and the state finance department for a review — and payback, said City Manager Fred Wilson.

After opting to keep its own Fire Department intact, the loss of redevelopment funds has led Fountain Valley to reconsider sharing fire services with neighboring Huntington Beach. The potential loss of up to $1.4 million in redevelopment funds from the general budget is forcing Fountain Valley to reexamine its options of sharing services, said Fountain Valley City Manager Ray Kromer. "With us losing redevelopment money, we're just kind of making sure we're reexamining everything," he said.

For years, Fountain Valley has planned to spruce up the section around the San Diego (405) Freeway near the Santa Ana River, adding a hotel, retailers and more to catch the eye of commuters and bring jobs to town. Now, like hundreds of other cities statewide, it's had to put its plans on hold. The state Supreme Court abolished city redevelopment agencies in December, leaving Fountain Valley, which has had its own agency since 1975, without the resources to complete many of its projects planned for the next few years.

Huntington Beach officials expressed shock and uncertainty for the city's development future following the state Supreme Court's ruling Thursday that abolished redevelopment agencies. Mayor Don Hansen said the ruling poses an even bigger risk for the city's general budget if the current $80 million in redevelopment debt owed to the city isn't paid. "If we're unable to collect on the property tax or get those debts repaid, that becomes a challenge," he said. The $80 million in redevelopment is owed to the city from prior projects, such as Bella Terra and the Strand, that were supported by the redevelopment agency.

The Huntington Beach City Council voted unanimously Monday to send a letter to Gov. Jerry Brown opposing his proposal to eliminate the redevelopment agency. Mayor Joe Carchio said Huntington Beach would take a big hit if the agency is eliminated. "It would just devastate us," he said Tuesday. Brown's proposal to eliminate redevelopment agencies statewide is part of sweeping cuts to balance the state's nearly $20-billion budget deficit. But Huntington Beach is among many cities that credit growth and projects to the money that comes from redevelopment, Carchio said.

Fountain Valley’s redevelopment agency has joined another city and the California Redevelopment Assn. in a lawsuit that aims to stop the state from diverting cities’ redevelopment funds toward education. The Fountain Valley Agency for Community Development, along with the Union City Redevelopment Agency and the statewide nonprofit, filed the suit Tuesday in hopes of nullifying a state bill passed in July. The state has mandated that city redevelopment agencies give back $2.05 billion over the next two years to fill gaps in the school budget, a move the plaintiffs call unconstitutional.

Redevelopment officials in Huntington Beach and Fountain Valley are reeling at the thought of the state budget being balanced on their backs, as both cities expect to lose millions of dollars from their coffers in the coming months. The state budget, which was signed by Gov. Arnold Schwarzenegger on Tuesday afternoon, called for the state to seize $1.7 billion from statewide redevelopment agencies in order to close a budget deficit of more than $24 billion. Fountain Valley expects to hand Sacramento more than $3 million of its redevelopment funds.