City Council Takes Control of Redevelopment Agency's Fate

On March 24, the new look Cerritos City Council called roll for its first line-up change since the March 10 meeting - the redevelopment agency being a hotbed of business. The council agreed to a resolution to transfer assets of the agency to Cerritos and also agreed to a request for payment to challenge the elimination of redevelopment agencies.

Before proceeding with more delicate business, recent city council candidate, Harshad Mody, wished the three men - who beat him out for a seat on council - the best of luck from the bottom of his heart.

“I wish whatever help you need from the community, feel free to ask the people who have some experience,” Mody said. “ I wish the best to all of you.”

Now for the more pressing matters at hand.

Resolution to Transfer Assets From the Cerritos Redevelopment Agency to the City of Cerritos

Ryan Carey, the city’s management analyst, delivered a report regarding property assets which are currently held by the Cerritos Redevelopment agency. According to Carey, the city staff would like to transfer all assets to Cerritos in light of Gov. Brown’s budget proposal to eliminate redevelopment agencies statewide.

“In an effort to protect and retain local control over the substantial interests the city’s redevelopment agency is at risk of losing, staff is proposing to transfer those assets to the city,” Carey said. “Provisions within community redevelopment law allow for such transfers with the caveat that cities are then obligated to cooperate with the agency in the implementation of the city’s redevelopment plan.”

Some of these properties include Reservoir Hill Park, , the vacant Mulliken Medical Center, the former ROP building and the B&B Stables site. According to attorney Dennis Roy, the transactions for the transfers can be closed as quickly as a couple days per concern of councilmember Joseph Cho.

“It is prudent for us to do this and thanks to staff for doing this expeditiously,” Mayor Carol K. Chen said. “They’ve done it in record time. I applaud our staff for bringing this to light. This could be a devastating thing for us should the governor get his way of passing the dissolution of redevelopment agencies.”

A Request by the League of California Cities and the California Redevelopment Association For the Payment in Litigation Costs to Challenge Gov. Brown’s Elimination of Redevelopment Agencies

Councilmember Mark Pulido was excused, upon his request, from discussing this item due to his employment by the state Legislature.

According to Assistant City Manager Kathy Matsumoto, the Cerritos Redevelopment Agency, along with the League of California Cities, plans to challenge the proposal and possibly file a lawsuit against the state of California. Matsumoto said the redevelopment agency is facing a $31,000,000 loss in annual tax increment funds. An assessment showed that $5,000 from the redevelopment agency would be needed for legal action. If no legal action is needed, the money will be returned.

“Not only is this a detrimental measure for the state of California, the League of California Cities and the CRA has determined that the taking of these local redevelopment funds to balance the state budget is unconstitutional and also in violation of the California Redevelopment Law,” Matsumoto said.

Despite councilmember Bruce Barrows being the vice president of the League of California Cities, he remained silent throughout the item’s report.

Report on Pending Legislation Regarding Gov. Brown’s Budget Proposal

City Manager Art Gallucci reported that a potential bill, led by the California Redevelopment Association and the League of California Cities is going to be submitted to the governor that is an alternative to the budget proposal. The potential bill will try to compromise some funding for redevelopment agencies as well as help contribute towards paying the state’s deficit.