Life After RDAs: Planning Commission, EDAC to Discuss Loss of Redevelopment Agency

The future of the much-discussed Wheeler Plaza development is shrouded in uncertainty, as the end of the city’s Redevelopment Agency has all but extinguished the development from progressing.

On Monday, Feb. 6, both the Planning Commission and the Economic Development Advisory Committee will discuss the city’s financial future, and what Wednesday’s dissolution of the RDA means for Wheeler Plaza and future developments.

Back on January 25, 2010, the Planning Commission and the Traffic and Circulation Commission conducted a joint study session on the environmental impact of the Wheeler Plaza Development, a major project the city has been trying to launch since 2009.

Just more than a year later, on June 29, 2011, Governor Jerry Brown signed into law a bill that drastically altered the future of redevelopment agencies throughout California.

Despite lawsuits from the California Redevelopment Association (CRA) and the League of California Cities, and the cities of San Jose and Union City, declaring the bill unconstitutional, the Supreme Court ruled the bill was valid, and all RDAs were dissolved on February 1.

“The RDA dissolution results in a significant loss in funds to the City’s General Fund, Capital Projects and affordable housing activities,” said city staff in public records. “It also wipes out the operating budget for economic development, the Wheeler redevelopment project and the branding/marketing initiatives.”

The financial loss is $1.4 to $1.6 million of net revenue, annually, which had previously been set aside for economic development, capital projects, and affordable housing activities.

The documents went on to say the city can receive, in the short term, $250,000 in administrative costs for its role as the successor agency and may, on a limited basis, continue to make payments under existing contracts.

Costs for any new or ongoing economic development activity, however, will need new funding allocation approved by City Council from the General Fund.

Now the San Carlos Planning Commission and Economic Development Advisory Committee will discuss the city’s next move this Monday.

The Planning Commission recently held a study session that included an introduction on the project from Community Development Director Al Savay, a presentation from the developer, Silverstone Communities on the design of the proposed project, a presentation and question and answer session from Lamphier-Gregory and Fehr and Peers on the Transportation and Circulation chapter of the draft Environmental Impact Report, according to city records.

On Monday, the Planning Commission will hear a presentation from Lamphier-Gregory, a consulting firm they hired to conduct an evaluation of the environmental impact of the plaza, while the Economic Development Advisory Committee will meet regarding the fiscal implications of the agencies disbandment. 

The Economic Development Advisory Committee will meet on the second floor of City Hall at 600 Elm Street at 4 p.m.

The Planning Commission will meet inside Council Chambers, also in City Hall, at 7 p.m.

How do you feel about the dissolution of RDAs? Let us know in the comments!

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