Los Angeles Business Journal

L.A. City Council Votes to Abandon Redevelopment Program

By Deborah Crowe Wednesday, January 11, 2012

The Los Angeles City Council on Wednesday voted 9-3 to not take over redevelopment responsibilities once the city’s Community Redevelopment Agency ceases to exist on Feb. 1.

Council members supporting the resolution said they were concerned about the cost and potential liabilities of becoming the successor to its redevelopment agency. The city’s financial analysts estimated there could be more than $109 million in costs if the city took over responsibility for redevelopment. Voting against Wednesday’s resolution were councilmen Ed Reyes, Eric Garcetti and Richard Alarcon.

The state Supreme Court last month upheld Gov. Jerry Brown’s plan to dissolve redevelopment agencies, which was approved by the Legislature. In his 2011 budget, Brown proposed redirecting the tax dollars to school districts and local governments, thereby freeing up nearly $2 billion dollars to shore up the state’s general fund.

Mayor Antonio Villaraigosa, Controller Wendy Greuel, the city administrative officer and chief legislative analyst supported the city not taking over CRA activities.