Why doesn't redevelopment get a closer look?

Always puzzling is the fact that Yorba Linda’s City Council members never seriously question the merits of the city’s Redevelopment Agency, whether from the governing body dais or in election-time campaign material.

That’s a bit strange, since Yorba Linda is the county’s second-most Republican city, as measured by the percentage of registered GOP voters, and several key Redevelopment Agency powers appear to violate long-held Republican Party positions.

For example, an agency can sell bonds secured by future tax revenues without voter approval--a power surely envied by officials at the local school, water and community college districts.

Yorba Linda’s agency now has $81 million in bond debt, which actually totals $126 million, if interest is included and the money is paid by the original stated deadlines.

Agencies also can give tax money or public property to developers or other business interests through a variety of methods, and they can use eminent domain authority to condemn private property to transfer to other private owners.

Of course, Yorba Linda’s agency rescinded the latter power, but members acted out of political necessity, not due to any deeply held, often-expressed governing philosophy.

Redevelopment agencies finance operations from increases in property tax revenues in project areas over a stated base year. Yorba Linda’s agency has collected these tax increments since 1983 from Savi Ranch and since 1990 from Town Center.

This fiscal year, Yorba Linda expects to reap $19.5 million from the two areas, with some 12 percent ($2.44 million) available for projects. The remaining 88 percent ($17.06 million) goes to a housing fund, debt payments, pass through agreements and county fees.

The state-mandated low- and moderate-income housing set-aside always gets 20 per cent of the agency’s revenue ($3.9 million this year), and repayment of debt already incurred totals nearly 24 percent ($4.66 million) for bond sales in 1993, 1998 and 2005.

This year’s repayments include $161,000 for bonds sold to help finance the relocation of the Old Town fire station as was proposed in a now-dead downtown redevelopment plan.

The pass-thorough agreement money, nearly 43 percent ($8.36 million), goes to 17 districts or agencies that previously would have collected portions of property tax increases in the two project areas.

The largest amount goes to the Placentia-Yorba Linda school district ($4.14 million with an additional $1.88 million deferred under terms of a lawsuit settlement agreement) and the least to the Orange County Cemetery District ($100).

Dividing up the rest of the cash are nine more county agencies, three more school districts and three community districts, including the Yorba Linda Water District.

Although Town Center redevelopment plans are on hold, Savi Ranch “big box” retail development has proven very successful, so it’s not entirely unexpected that political principles are ignored when increasing tax revenues are at stake.

A FINAL NOTE

Former Mayor Mike Duvall’s first state Assembly assignments include serving as vice chair of the Transportation Committee and member of the Budget and Insurance committees and a budget subcommittee on education finance.

Bob Huff, who represents eastern Yorba Linda, will serve on Budget, Education, Transportation and a subcommittee on information technology and transportation.

In a recent press release, Duvall, one of 32 Republicans in the 80-member Assembly, called Gov. Arnold Schwarzenegger’s second-term Inaugural address “an enjoyable celebration of bipartisanship” and said, “I look forward to working with the governor.”