By City Manager, Wade G. McKinney
In June 2011, the State Legislature passed legislation that will cause the elimination of all redevelopment agencies in California and the transfer of our local property tax revenue to the State. The League of California Cities and the California Redevelopment Association filed a lawsuit with the California Supreme Court challenging that the Governor’s and Legislature’s actions were unconstitutional based on the passage of Proposition 22 passed in November 2010. On December 29, 2011, the California Supreme Court upheld the State’s desire to eliminate redevelopment agencies.
We were surprised by the Supreme Court’s decision. This is another serious blow to Atascadero. Most all of the new commercial development, Lake Park improvements, and downtown beautification have been funded by the Redevelopment Agency. The solutions will not be easy. The immediate loss will be difficult, but over time we will work together and get through this.
What does the elimination of our Redevelopment Agency mean to Atascadero? The Atascadero Redevelopment Agency generated approximately $3 million annually. The following list is just a sampling of what this revenue has been used to accomplish:
Redevelopment funds have employed hundreds of people in Atascadero and greatly improved our infrastructure within the Redevelopment Agency, and for that we are grateful. The elimination of the Redevelopment Agency will require that we adjust the way we conduct business. The City of Atascadero, along with its citizens, has already been facing hard economic times and this latest blow from the State is challenging, to say the least.
I will keep the community informed on our progress of creating solutions and action plans for Atascadero’s recovery from this unfortunate situation we find ourselves in. For more information, please contact my office at 470-3400, or email me at
The City of Atascadero established the Project Area by Ordinance No. 362, enacted by the City Council of the City of Atascadero on July 13, 1999, as amended by Ordinance No. 415, enacted by the City Council of the City of Atascadero on April 22, 2003. The Redevelopment Plan seeks to establish a pattern of land use that will best promote the health, safety, convenience and welfare of all citizens of the community. The redevelopment Plan strives to encourage private investment in industry, commerce and housing by providing needed public facilities and improvements and promoting an environment that reflects concern for architectural and urban design principles.
The project Area was adopted under the provisions of the law enacted by California Assembly Bill 1290 in 1993. Under the law, as amended, project areas adopted after January 1, 1994 terminate their effectiveness not more than 30 years from the date of their adoption. Loans, advances and other forms of indebtedness may not be repaid beyond 45 years following the date of adoption of the redevelopment plan. Except for certain expenditures from the Low and Moderate Income Housing Fund, redevelopment plans adopted after January 1, 1994, may not establish any new debt to be repaid from tax increment revenue beyond 20 years from the date of adoption and eminent domain proceedings may not be initiated beyond 12 years from the adoption date. Redevelopment plans adopted after January 1, 1994, are not required t have limits on the amount of tax increment that may be received annually or over the life of the plan. The plan limitations for the Atascadero Project Area are as follows:
Plan Life: July 13, 2029
The California legislature recently enacted SB 1045, Chapter 260, Statutes of 2003 (“SB 1045”), as an urgency statute, relating to a requirement that all redevelopment agencies allocate specified amounts of tax increment to the County Controller for deposit into the Education Revenue Augmentation Fund (“ERAF”). In recognition of the loss of revenue to the agencies, SB 1045 authorizes amendments to redevelopment plans to extend by one year the life of the redevelopment plan and the time period in which to collect tax increment revenues. The legislative body of a redevelopment agency can adopt an ordinance without having to follow normal lengthy procedures to amend its redevelopment plans. The Agency has not adopted an ordinance to extend by one year the life of the Redevelopment Plan, and the time period in which to collect Tax Increment Revenues but may elect to do so in the future.
The project Area is, for the most part, centrally located with the City, comprising 1.72 square miles (approx. 1,110 acres). It hosts a mix of commercial activities consisting of 188 acres along El Camino real north and south, and Highway 41 west. The industrial area, consisting of 32.86 acres, is also located with the Project Area along Traffic Way east and northeast. The downtown area has been designated by the City Council and Agency as the focal point of redevelopment activities and investment. The downtown has an eclectic architectural style, with a number of historic structures and point of historical interest.
The Agency has an arrangement with the City of Atascadero for financial assistance and services, facilities and personnel support. As moneys become available, the Agency reimburses the City for all such services performed in amounts equal to a portion of the gross salary and employee fringe benefits for certain City employees utilized by the Agency, plus other miscellaneous operating and equipment costs and capital expenditures.
All powers of the Agency are vested in its members. Pursuant to California Redevelopment Law, the Agency is a separate public body and exercises governmental functions, including planning and implementing redevelopment projects.
The Agency may exercise the right to issue bonds for e authorized purposes, and to expend their proceeds. Also exercise the right to acquire, sell, rehabilitate, develop, administer or lease property. The Agency may demolish buildings, clear land and cause to be constructed certain improvements, including streets, sidewalks, and utilities, and can further prepare for use as a building site any real property which it owns or administers.
The Agency may, from any funds made available to it for such purposes, pay for all or part of the value of land and the cost of buildings, facilities or other improvements to be publicly owned and operated, provided that such improvements are of benefit to a redevelopment project and cannot be financed by any other reasonable method. The Agency may not construct or develop buildings, the exception of public buildings and housing, and must sell or lease cleared property which it acquires within a redevelopment project area for redevelopment in conformity with a particular redevelopment plan, and may further specify a period within which such redevelopment must begin and be completed.
Pursuant to section 33675 of California Redevelopment Law, on or before October 1 of each year the Agency must file with the County Auditor a statement of indebtedness certified by the chief fiscal officer of the Agency for each redevelopment project that received tax increment. The statement of indebtedness is required to contain the date on which any bonds were delivered, the principal amount, term, purpose and interest rate of bonds, and the outstanding balance and amount due on bonds. Similar information must be given for each loan, advance or indebtedness that the Agency had incurred or entered into to be payable from tax increment. The Agency has complied with the requirements of section 33675 each year since adoption of the Redevelopment Plan.
Section 33675 also provides that the County Auditor is limited in payment of tax increment to the Agency to the amounts shown on the Agency’s Statement of Indebtedness. The section further provides that the Statement of Indebtedness is prima facie evidence of the indebtedness of the Agency but that the County Auditor may dispute the amount of indebtedness shown on the statement in certain cases. Provision is made for time limits under which the dispute can be made by the County Auditor as well as provisions for determination by the Superior Court in a declaratory relief action of the proper disposition of the matter. The issue in any such action must involve only the amount of the indebtedness and not the validity of any contract or debt instrument, or any expenditure pursuant thereto. An exception is made for payments to a public agency in connection with payments by such public agency pursuant to a bond issue that shall not be disputed in any action under section 33675.
The law requires redevelopment agencies to have an independent financial audit conducted each year. The financial audit is also required to include an opinion of the Agency’s compliance with laws, regulations and administrative requirements governing activities of the Agency. The audit firm of Glenn, Burdette, Phillips, and Bryson was engaged to perform the audit of the Agency's 2006-2007 Financial Statements.
Address: 6500 Palma AvePhone: (805) 461-5000Fax: (805) 461-7612Contact Page: www.atascadero.org/contactus
Address: 5505 El Camino RealPhone: (805) 461-5051Fax: (805) 461-3702Website: www.atascadero.org/Police
Address: 6005 Lewis AvePhone: (805) 461-5070Fax: (805) 466-2907Website: www.atascadero.org/Fire
Address: 5599 Traffic WayPhone: (805) 470-3360Fax: (805) 461-7612Website: www.atascadero.org/communitycenter
Address: 9315 Pismo AvePhone: (805) 461-5005Fax: (805) 461-5026Website: www.paviliononthelake.com
Address: 9305 Pismo AvePhone: (805) 461-5080Fax: (805) 461-7625Website: www.charlespaddockzoo.org
Address: 8005 Gabarda RdPhone: (805) 461-5000Fax: (805) 461-5022Website: www.atascadero.org/wwtp
6500 Palma Ave, Atascadero, CA 93422 | Tel: (805) 461-5000 | Fax: (805) 461-7612 | © 2011 - City of Atascadero
Sign up for email notifications, submit online requests, edit contact info.