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City Warned Not to Become CRA/LA's Successor Agency - Los Angeles - California

City Warned Not to Become CRA/LA's Successor Agency

City Administrative Officer Miguel Santana and Chief Legislative Analyst Gerry Miller warned today the city could be on the hook for as much as $109 million if it elects to be in charge of winding down the Community Redevelopment Agency of the City of Los Angeles, a task required by a recent state Supreme Court ruling.

Patch.com | Published: 01/11/2012 07:25

The City Council has by Friday to decide whether to become the agency responsible for absorbing all of the employees and administration for remaining CRA/LA projects and outstanding debts.

The move would leave the city with little control over the fate of an agency with a budget of more than $670 million that drove key development projects, including a new downtown art museum, housing and park project.

The CRA has been instrumental in developing the NoHo Arts District over the last 20 years. There are also a number of CRA-backed projects currently underway, which will be allowed to finish. The CRA-North Hollywood Project Manager,  Gazala Pirzada, recently spoke at the Midtown NoHo Neighborhood Council and gave an outline on the status of projects that would be affected by the possible elimination of the CRA. See the story here.

The California Supreme Court in late December upheld a state law that eliminated the agencies, which use increases in property tax revenue to fund development projects mainly in blighted parts of cities.

The law passed by the Legislature required the elimination of the agencies by Feb. 1. It also forced local governments to establish successor authorities to dismantle the agencies.

In a lengthy report that lays out a laundry list of major liabilities, Santana and Miller advised the city not to become the CRA/LA's successor agency.

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