1. CITY OF LA: POST
REDEVELOPMENT
USC SOL PRICE SCHOOL OF PUBLIC POLICY
PPD 619: SMART GROWTH & URBAN SPRAWL
GROUP 1
JOY-ALONICA BAUTISTA
JEFF KHAU
MARISOL MACIEL
THOMAS WONG

2. RESEARCH OUTLINE
q Background Context
q Meeting w/ City of LA’s Planning
Department
q Case Study of California Cities
q City of Alhambra Source: http://la.curbed.com/tags/budget
q Best Practices of Economic Development
q Chicago, Ilinois
q Phoenix, Arizona
q New York, New York

3. BACKGROUND CONTEXT
q California Redevelopment
Agencies died on February
1, 2012.
q Land-use conflicts and
much more…
q Successor agencies
q What is LA doing to spur
economic development?

4. RECOMMDENDATION #1
CITY OF ALHAMBRA

5. Potential
Tools
for
Financing
Economic
Development
long-­‐term
l oans
secured
by
some
form
of
collateral
and
revenues
generated
from
a
project
or
paid
Section 108 loans
from
a
portion
of
the
city’s
annual
CDBG
allocation
ideal
for
i nfill
development
projects
and
tenant
i mprovements
under
the
category
of
job
creation
or
Annual CDBG allocation
elimination
of
blight
CDBG Program Income net
proceeds
from
any
project
made
possible
through
the
use
of
CDBG
funds
New project-generated sales
new
net
sales
taxes
from
a
development
that
can
be
rebated
to
offset
project
costs
tax rebates
New project-generated
new
net
property
taxes
from
a
development
that
can
be
rebated
to
offset
project
costs
property tax rebates
Short term lines of credit secured
and
repaid
by
new
net
project
generated
property
or
sales
taxes
Federal/State Grants or
increases
access
to
capital
for
small
businesses–a
key
component
of
job
creation,
and
helps
provide
Economic Development
additional
security
for
a
Section
108
l oan
Initiatives

6. ADDITIONAL FINANCING TOOLS
Loans from General Fund or
may
require
a
l oan
agreement
as
well
as
an
i nterest
component
to
do
some
types
of
projects
Enterprise Reserve Funds
Sale of city assets set
aside
f unds
f rom
sale
of
city
assets
City fees that are discounted,
negotiated
i ncentives
to
make
i t
e asier
to
attract
new
businesses
and
i nvestments
waived or deferred
assistance
to
assess
and
remediate
abandoned
or
underused
i ndustrial
and
commercial
property
Brownfields assistance
(possible
f unding
available
via
the
EPA
or
Federal/State
agencies)
bonds
through
IFDs
can
be
used
to
help
pay
f or
i nfrastructure-­‐type
projects
by
diverting
property
tax
Infrastructure Financing
revenues
to
pay
debt
service
f rom
other
l ocal
governments,
e xcept
schools
( requires
two-­‐thirds
Districts (IFDs)
voter
approval)
bonds
backed
by
revenue
generated
f rom
a
project
f unded
with
bond
proceeds
and
repaid
by
Revenue bonds
earnings
f rom
the
operations
of
a
revenue
producing
e nterprise
tax-­‐exempt
bonds
i ssued
by
chartered
cities
f or
e conomic
development
or
multi-­‐family
housing.
The
Conduit revenue bonds bond
i s
payable
f rom
l oan
payments
received
f rom
the
non-­‐governmental
developer
on
the
condition
of
a
public
benefit,
and
presents
no
l iability
f or
the
governmental
e ntity
bonds
used
mainly
to
f inance
public
works
i mprovements
and
services
or
to
pay
f or
specific,
l imited
Community Facilities Districts improvements
related
to
privately-­‐owned
or
real
property
( requires
two-­‐thirds
voter
approval
to
establish
the
parcel
tax,
i .e.,
Mello-­‐Roos)
a
charge
assessed
against
real
property
whereby
there
i s
a
benefit
f rom
a
particular
public
works
or
Assessment Districts public
services
project
or
activity
undertaken
by
the
city.
The
special
weighted
voter-­‐approved
assessment
becomes
a
part
of
the
f unding
mechanism
to
defray
the
cost
of
the
project

7. RECOMMENDATION #2
NYCEDC
q Commercial Tax
Incentives
q Empower Zone Benefits
q Commercial
Revitalization Program
Source: http://www.nycedc.com

8. RECOMMENDATION #2
New York State EDC Example of IDA Benefits
Project "X" builds 50,000 sq. ft.
building for $5,000,000, and has
q Brownfield Cleanup $4,000,000 mortgage.
Program (BCP) Tax
Mortgage recording tax savings (1%
Credits of mortgage) = $40,000
Real Property Tax abatement =
$275,000 over 10 years
q Industrial Development Sales tax savings on construction
materials and non-manufacturing
Agency Program equipment = $120,000 + $54,000 =
q Abatement of sales tax $174,000
Total savings over 10 years =
$489,000
Source: http://www.nysedc.org/

9. RECOMMENDATION #3
Restructuring: Chicago’s Model
§ Department of Housing and
Economic Development
§ Comprised of Commissioner’s Office
and three bureaus
§ Bureau of Housing
§ Bureau of Economic Development
§ Bureau of Planning and Zoning
§ Bureaus do the bulk of the work in
regards to execution of projects.
§ Commissioner’s Office assists in the
decision-making process
§ Composed of private individuals
who attend meetings once a
month
§ Community Development
Commission (CDC) Chicago Skyline
Source: http://www.prlog.org
§ Oversight body created to review
expenses; unpaid positions

10. Chicago Model
HED Structure
Source: http://www.cityofchicago.org/content/city/en/depts/dcd/auto_generated/dcd_our_structure.html

11. RECOMMENDATION #4
q Streamlined process
q Simplified way to get
involved with
development
q Department that knows
about the start-up process
Source: http://phoenix.gov
q Desire to have a
relationship with business
owners

12. CONCLUSION
q Pass Limited Transition Ordinance
q Institute economic development plan using
alternative financing tools
q Capitalize on incentives and provide a customer
advocacy program
q Streamline planning & development processes

13. THANK YOU! QUESTIONS?