Wednesday marks the end of Redevelopment Agencies in California

Posted: Feb 1, 2012 7:10 PM by Kathy Kuretich
Updated: Feb 1, 2012 8:58 PM

As of Wednesday, California redevelopment agencies are no more.

The agencies use a portion of property taxes to improve blighted neighborhoods.
Last year, lawmakers voted to end RDAs and shift the money to the general budget.
Back in July, groups representing RDAs filed a lawsuit against the state, but the Supereme Court ruled against them.

Combined, San Luis Obispo County agencies will lose nearly four and a half million dollars, while Santa Barbara County agencies will lose a combined 12- and a half million dollars.

Atascadero will lose more than a million dollars.
RDA chair Roberta Fonzi said they recruited many businesses in the Galaxy Theatre complex because of their RDA funds.
They've also helped renovate the downtown by helping finance signs at several businesses like Bru Coffeehouse.
"Not only did it have assistance in getting its sign in place and building permits expedited, but it has affordable housing that was put in the second floor that was previously unused and in poor repair," said Fonzi.

Mike Talen owns Cold Stone Creamery in the Galaxy Theatre complex. He also was given RDA funds to help with signs, and made the decision to come to Atascadero because other businesses were moving in.
"It helped a tremendous amount in getting the whole complex in here opened. Because this is a great place to do business," he said. "All those jobs are gone, all that stimulus is gone. And that's going to affect not only Atascadero but the entire state."

"This is a real blow for the city of Atascadero. We are a small city. We don't have a lot of discretionary money. We're like every other city that's struggling to pay our police and fire and keep our roads up and this is a lot of money that's going away," said Fonzi.

Governor Brown said the money will go to schools, law enforcement and other necessities throughout the state.
Lawmakers who support ending of RDAs say it's an outdated program, and just a form of corporate welfare.