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CITY’S NEW SUCCESSOR AGENCY BOARD TAKES ACTION ON FUNDS FOR REDEVELOPMENT PROJECTS

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By Nadin Abbott
 
April 27, 20011 (San Diego) – Newly sworn in members of the Oversight Board Successor Agency went straight to work yesterday, approving funding for continuing of approximately 800 projects in the pipeline.  The new board is the successor organization to the Centre City Development Corporation, which was required to dissolve following a December California Supreme Court decision upholding Legislative action. 

 

Board members are Andra Donovan, Bonnie Anne Dowd, Maureen Stapleton, Michael Zucchet, Mark Nelson, Peter, Q. Davis and Ron Roberts. (Supervisor Roberts was not present). As its first action, the Board elected Nelson as Chairman, who in turn selected Davis as Vice Chairman.

 
Next, the board heard public testimony on the Recognized Obligations Payments (ROPs) and the Enforceable Obligations Payment Schedule. (EOPs). These payments are due for projects already in the pipeline.  If not authorized immediately, payments would stop as of May 1 for ROP 1, and as of June 1 for ROP 2.
 
The Supreme Court decision and AB 26 also mandated that all these contracts be audited both at the county and state levels. A challenge facing the Board was that in the interim between the Court decision and today, the City Council became the de-facto successor agency and made  decisions. This meant that the new board had to decide on these decisions with limited input and information. Moreover, the members had no legal counsel, as the City Attorney could not provide advice due to a possible conflict of interest. (One agenda item was to explore the possibility of who to engage as council;  Nelson will report back to the Board on this. )
 
At stake were just over 800 hundred projects that are at different levels of completion. Over 30 members of the community, including many developers and the San Diego Chamber of Commerce, came to speak—most recommendingthat the new Board authorize the EOPS and the ROPs.
 
It was noted by the Board that members of the Center City Development Corporation (CCDC) were present. A short history of redevelopment was given by Jeff Graham, Vice President of the CCDC. Mr. Graham pointed out that Horton Plaza, Petco Park and the Civic Center phase one and expansion one were catalytic projects to revitalize downtown that helped restore the area into the vibrant community that many San Diegans enjoy today.  Likewise the Southern Economic Development Council (SEDC) also helped to revitalize some areas in Southeast San Diego; an example of these catalytic projects was the Euclid Market  and Market Creek. Both were examples of urban blight, but now are touted as models of vibrant successful redevelopment.
 
When open comment started, most who spoke supported the Board approving  payments on the 800 or so projects.
 
But there were two opponents, including Katheryn Rhodes, who pointed out that some of these funds should be used to fund projects to eliminate homelessness in the city. She brought a letter from Congressman Filner pointing out that Housing and Urban Development Funds (HUD) should not be mixed with development funds.
 
Jane Van Der Hoot pointed out that “her community was not included in the EOPS,” and this may become a more common problem.  This is why she opposed them at this time.
 
Many of the speakers, such as Alma Rodriguez, spoke about benefits to the community in North Park, and how these funds have helped to revitalize this community. They said it’s time to continue these projects and not to let the job remain half finished.
 
A pattern quickly emerged showing projects viewed as essential to different members and groups in the communities. Also residents from lower income communities, such as Brian Pauler of Valencia Park, asked that these communities not be left behind.
 
Robert Ito told the board not to engage in a fire sale of properties that taxpayers already paid for.  Otherwise he pointed out these properties would have to be sold off. He supported the implementation of the EOPS and ROPs.
 
Chris Jerrod from Southeast San Diego asked that the Southeast communities be kept in the pipeline and asked the Board to continue with the development of important projects benefiting those communities. An example of this is the Gateway Center and expansion and maintenance of Transit, which are viewed as essential to these communities.
 
Leane Marchese from Elder Help said that the projects they are involved with in North Park will allow the elderly to continue to live at home. She urged them to approve both the EOPs and the ROPs. Cruz Gonzales, the Chairman of the Board of the SEDC asked this board not to forget the Southeast communities that seem to consistently be left out.
 
Davis Hazen said that promises were made (such as parks and other green areas) to residents of down town and representatives must live up to those obligations.
 
According to Paul Webster, Vice President of Public Policy for the San Diego Chamber of Commerce, “In spite of the successes the state has decided to change the rules” regarding projects. Regardless these projects are critical for the future of the city, he said.
 
This is tax payer money that will be used for fire stations and other public uses, among other things. Gary Smith, President of the San Diego Business Group added that “these projects are meant to address the density in downtown.”  He added to Hazen’s statements that the park is needed.
 
Tom Lemon from the San Diego County Construction Trades Council of San Diego brought a critical issue to the attention of the Board. According to the organization, if Proposition A passes, all this discussion will be academic.
 
“If an ordinance of a charter city prohibits the governing board’s consideration of a Project Labor Agreement (PLA) for a project to be awarded by the city, or prohibits the governing board from considering whether to allocate funds to a city funded project covered by such an agreement,” je cautioned, “then state funding or financial assistance may not be used for that project.” In effect, according to the Trades Council, this puts millions of dollars at risk.
 
Mr. Zucchet requested that staff look into this before the next meeting.
 
The Board approved the ROPs and EOPs on a 5-1 vote, with one abstention. Donovan voted against it, and Nelson also made a note that he had to recuse himself on a few projects, since they involved his employer, Sempra Energy.
 
The next meeting has been set for May 11th, at 9:00 a.m. on Council Chambers. Of note, public comment will be allowed as the first item of the agenda as requested by a citizen. 

 


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