What is Redevelopment?
Redevelopment is a process authorized under California law that enables local government entities to revitalize deteriorated and blighted areas in their jurisdictions. Redevelopment agencies develop a plan and provide the initial funding to launch revitalization of identified areas. In doing so, redevelopment encourages and attracts private sector investment that otherwise wouldn't occur. Redevelopment activities create jobs and expand business opportunities, provide housing for families most in need, help reduce crime, improve infrastructure and public works, and cleanup of environmentally-threatened and rundown areas.
Why is Redevelopment Needed?
Redevelopment is needed to assist our neighborhoods and business/commercial areas that are struggling economically and socially. The abandoned gas station, dilapidated housing project, and a vacant strip mall that is continually vandalized are all examples of deteriorated and blighted areas. Revitalization of these areas does not happen on its own. Often, the private sector is reluctant to invest in such areas because the risk and costs associated with doing so outweigh the benefits. Redevelopment serves as a catalyst for private investment by providing the initial plan and seed money that ultimately breathes new life into areas in need of economic development and new opportunity.
What is a Redevelopment Agency?
State law gives a local government (city or county) the authority to form a redevelopment agency with the specific goal of revitalizing deteriorated or blighted areas. Corona's Redevelopment Agency is overseen by the local city council, -- all accountable to the public.
Because we are governed by the City Council, redevelopment agencies are in the best position to work with local citizens and businesses to identify community needs and to work with private investors on local projects to meet those needs. Redevelopment agencies support jobs, replace and upgrade infrastructure such as streets, water lines, and sewers, fund affordable housing, provide community facilities, clean-up contaminated properties, and encourage sustainable communities.
What types of projects do redevelopment agencies take on?
Redevelopment agencies breathe new life into designated project areas in need of revitalization, economic development and new opportunity by:
- Constructing or rehabilitating housing for working families
- Building and upgrading roads, water systems and other public works and infrastructure
- Community beautification projects
- New construction or rehabilitation of commercial centers
- Reinvestment in Brownfields sites
- Creation and retention of new jobs
- Provide business and property owner programs
How is Redevelopment Funded?
The primary source of revenue is from tax increment. When a redevelopment project area is formed, the county government determines the total assessed value of all the properties within the project area. This is commonly called the "base value" or "frozen base". Much of the tax increment money generated from the increase in value above this frozen base each year is transferred to the redevelopment agency so it can invest the funds into the project area.
Basically, a redevelopment project brings back revenue to the City to be used within the City, which would otherwise go to the County and other taxing agencies.
A property owner in a redevelopment project area pays no more or no less taxes than normal with the formation of a redevelopment project area. However, the property owner directly benefits from the increase revenues received by the Agency since these revenues can only be spent in the redevelopment project area. Funds for redevelopment projects are derived from the regular increases in property tax assessments, not from added property taxes.
What is a Blighted Area?
Areas that demonstrate substantial and prevalent adverse physical and economic conditions in the Project Area requiring redevelopment assistance such as:
- Unsafe or unhealthy buildings
- Factors hindering economic viability of property
- Adjacent or nearby incompatible uses
- Irregular lots in multiple ownership
- Irregular lots in multiple ownership
- Depreciated or stagnant property values
- Impaired property values due to hazardous waste
- Serious lack of commercial facilities and public infrastructure
- Residential overcrowding
- Problem businesses and high crime rates
400 S. Vicentia Avenue | Corona, CA 92882 | (951) 736-2260