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Broad Coalition Urges Quick Passage of SB 659 (Padilla) to Postpone Dissolution of Redevelopment on Feb. 1, 2012

January 13, 2012

Temporarily Postponing Feb. 1 Deadline for Dissolution of Agencies Will Help Mitigate Litigation and Uncertainty and Provide Time to Fix Problems with Implementing Legislation

Labor groups, public safety advocates, business groups, local government, housing advocates and community groups today urged the Legislature to quickly pass and Gov. Jerry Brown to sign SB 659 (Padilla). The bill postpones the Feb. 1, 2012 deadline to begin dissolution of redevelopment agencies. The postponement until April 15, 2012 will give a needed pause to address and fix many of the implementation issues that have come up as the result of AB x 1 26, the bill governing elimination of redevelopment agencies.

"We need a short delay on the dissolution of redevelopment agencies to address serious issues resulting from the recent state court's ruling. Failing to address these issues may cost many jobs and create mass litigation over redevelopment projects currently underway," said Sen. Alex Padilla (D-Pacoima). "Successor agencies and the state may face huge liabilities and jeopardize school funding. I have introduced SB 659 to provide state leaders time to craft the necessary solutions."

Without passage of SB 659, agencies will be dissolved on Feb. 1, 2012, and the successor agencies will be responsible for winding down all assets, properties, contracts, leases, records, buildings, and equipment of the former redevelopment agencies. The process of breaking up redevelopment agencies and distributing their assets will lead to lawsuits, layoffs, delays, and confusion. Passage of SB 659 would postpone the mass confusion and provide needed breathing room. It would not have any fiscal impact on timing of revenues flowing to the State or local entities such as school districts.

"Hundreds of workers at the local level are being threatened with layoffs," said Steve Koffroth, AFSCME Council 36 - business representative for CRA/LA members. "Particularly in this economy, when 1 in 10 workers are unemployed, we need time to make sure the dissolution process is done correctly and everything possible is done to protect workers impacted by this decision. SB 659 gives us the breathing room we desperately need."
"Uncertainly is the enemy of investment," said Richard Lyon, senior vice president, California Building Industry Association. "We need to take a breather and not rush to this Feb. 1 deadline. A few weeks will give time needed to address concerns with dissolution."

Groups in support of SB 659 as of Jan. 13:

American Federation of State, County and Municipal Employees
Service Employees International Union, California
Air Conditioning Sheet Metal Association
California Chapters of the National Electrical Contractors Association
California Landscape and Irrigation Council
California Legislative Conference of the Plumbing, Heating and Piping Industry
Glendale City Employees Association Organization of Sacramento Municipal Utility District Employees
Professional and Technical Engineers, Local 21
San Bernardino Public Employees Association
San Luis Obispo County Employees Association
Santa Rosa City Employees Association

Public Safety
California Police Chiefs Association
Signal Hill Police Officers Association

California Chamber of Commerce
California Building Industry Association
California Building Owners and Managers Association
California Business Properties Association
California Business Rountable
California Downtown Association
California Main Street Alliance
California Manufacturers and Technology Association
American Institute of Architects, California Council
Building Industry Association of Southern California
Los Angeles County Business Federation
National Association of Industrial and Office Properties, California Chapter
Valley Industry and Commerce Association
California Association for local Economic Development
International Council of Shopping Centers
American Council of Engineering Companies of California
Greater West Covina Business Association
Inland Valley Business Alliance
San Gabriel Valley Economic Partnership
Los Angeles Area Chamber of Commerce
Chambers of Commerce Alliance Ventura and Santa Barbara Counties
Cerritos Regional Chamber of Commerce
Greater Lakewood Chamber of Commerce
Greater Riverside Chambers of Commerce
Greater Stockton chamber of Commerce
Highland Area Chamber of Commerce
Monterey Peninsula Chamber of Commerce
San Bernardino Area Chamber of Commerce
San Jose Silicon Valley Chamber of Commerce
Tuolumne County Chamber of Commerce
Alameda Chamber of Commerce
Corcoran Chamber of Commerce
Downy Chamber of Commerce
Emeryville Chamber of Commerce
Fullerton Chamber of Commerce
Harbor City/Harbor Gateway Chamber of Commerce
Lodi Chamber of Commerce
Montclair Chamber of Commerce
Morgan Hill Chamber of Commerce and Visitors Center
Montebello Chamber of Commerce
Ontario Chamber of Commerce
Orange Chamber of Commerce
Redlands Chamber of Commerce
Redondo Beach Chamber of Commerce and San Pedro Chamber of Commerce
Santa Ana Chamber of Commerce
Simi Valley Chamber of Commerce
Vacaville Chamber of Commerce
Yucca Valley Chamber of Commerce
Visitors Bureau
Hollister Downtown Association
Downtown Long Beach Associates
Downtown Sacramento Partnership
Eureka Main Street Association
Fairfield Main Street Association
Paso Robles Main Street Association
Playhouse District Association
The River District
3D Visions
Allied Commercial Real Estate
Alliance for a United Montebello
Alma Family Services, Inc.
City Ventures
Civitas Advisors
Deborah Murphy Urban Design and Planning
Ford Mance Company
Games 4 U
Globe Properties
Hall & Bartley Architecture and Planning
Hampton Inn and Suites of Vacaville
Lavish by L&m Inc.
Lawless Financial
Lithopass Printing, Forms, Graphics and More, Inc.
Manteca Visitors Center
Mechling Construction Company
Metro Estates
Mogavero Notestine Associates
The Ometeotl Group
Ontario Convention Center
Opportune Companies
Opper and Varco LLP
Pat Paris Appleby
Rosenow Spevacek Group, Inc.
RRM Design Group
Santa Fe Land Planning
Sportsplex USA Inc.
Stockton Builders' Exchange
Todos Santos Business Association
Tolar Manufacturing Company, Inc
Vacaville Conference and Visitors Bureau
Vineyard RV Park

Wallace and Smith Contractors
People's Self Help Housing Corporation
Housing Authority of the City of Santa Barbara
Habitat for Humanity of Southern Santa Barbara County

Stanislaus County Affordable Housing Corporation
American Legion Post 772
Banning Cultural Alliance
Give Every Child A Chance
Inland Action

Local Government
Los Angeles Walks
The League of California Cities
California Building Officials
California Redevelopment Association
Cucamonga Valley Water District
Muni Services 
Three Valleys Municipal Water District

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