By Khalida Sarwari
Cutting redevelopment funding would be detrimental to California’s economy, but it would be especially bad for San Jose at a time when it is seeing net job growth, Mayor Chuck Reed said at a conference this morning.
Speaking at the California Redevelopment Association’s annual conference and exhibition in San Jose, Reed said the city’s investment of billions of dollars into its redevelopment agency has led to the creation of tens of thousands of jobs, a remodeled downtown, thousands of new housing units, and renovated neighborhoods that had previously been blighted.
“Why would you kill the one thing that works?” Reed asked.
In January, Reed, along with the mayors of California’s largest cities, including San Francisco and Oakland, met with Gov. Jerry Brown to try to dissuade him from following through with a proposal to eliminate city redevelopment agencies to help reduce the state’s budget deficit.
Since then, while negotiations have been taking place, Brown’s proposal has continued to pose a threat to redevelopment agencies, California Redevelopment Association Executive Director John Shirey said.
He hailed the passage of Proposition 22, a measure that prohibits the state from taking or borrowing funds used for transportation improvement, public safety and local government service.
“Without it, the game would be over already,” Shirey said.
Chris McKenzie, executive director of the League of California Cities, was recognized this morning for his efforts in getting the measure passed.
He urged fellow supporters of the initiative to continue to work in partnership with the state to reach a compromise.
One such compromise was offered by Shirey, who announced an alternative proposal that would create $2.7 billion for the state over the next 10 years.
Shirey suggested agencies could voluntarily contribute 20 percent of their tax increment funds to local schools and an additional 1 to 10 percent of non-housing funds over the next 10 years. In return, agencies would be able to be granted extensions for their projects.
The conference, titled “Redevelopment: Worth Fighting For,” began this morning and is slated to run through Friday. Carl Guardino, president and CEO of the Silicon Valley Leadership Group, was scheduled to give the keynote address, but was unable to attend.