On June 29, 2011, Governor Jerry Brown passed ABX1 26, the "Dissolution Act", and ABX1 27, the "Continuation Act", as a part of the California State budget. A law suit was filed against the State on July 18, 2011 asserting that ABX1-26 & ABX1-27 violated the constitutional protections for Redevelopment funds (see below for description of what redevelopment was before dissolution). On December 29, 2011, the California Supreme Court issued its ruling to uphold ABX1-26 and strike down ABX1-27. This action established the complete dissolution of Redevelopment Agencies in the State of California, effective February 1, 2012.
As part of this dissolution, redevelopment agencies were required to establish a Successor Agency, which would be charged with handling any outstanding debts and winding down the activities of the former redevelopment agencies, under the direction of the Oversight Board. The City of Torrance has been established as the Successor Agency to the Redevelopment Agency of the City of Torrance.
REDEVELOPMENT....WHAT WAS IT?
According to Webster's Dictionary, it is defined as the following: redevelopment
: renovation of a blighted area
In 1964, the Torrance Redevelopment Agency was created to do just that. Its primary function was to assist the City in eliminating blight from a designated area within the City, and to attract new commercial, industrial, and residential developments in order to improve and breathe new life into an area.
There are four former Redevelopment Project Areas within the City of Torrance:
1. Meadow Park
Through former redevelopment efforts, these project areas have received focused attention and financial investment to reverse deteriorating trends, create jobs, revitalize the business climate, rehabilitate and add to the housing stock, and gain active participation and investment by citizens, which would not have otherwise occured.
The former Agency used a process called "tax increment financing" to carry out its goals. When an area was designated as a redevelopment area by the City Council, the property within the boundaries of the project area had a certain total property tax value. If this total assessed valuation increased due to redevelopment effort, most of the taxes that were derived from the increase went to the Redevelopment Agency to fund additional improvements.
If you would like further information please contact us at (310) 618-5990.