Funds to Stabilize Neighborhoods, But Which Ones?

3 August 2009 - 5:00am

Funding from the federal Neighborhood Stabilization Program is finding a lot of use in foreclosure-swamped California's San Bernardino County. But one city is deep in debate over how those funds should be used, and which areas should be saved.

Officials want to use the funds to revitalize a formerly crime-ridden neighborhood, but others and many locals are opposed.

"The issue of redevelopment work there has aroused heated debate among San Bernardino's politicos - the redevelopment plan passed by a single council vote - and protest on a hot Saturday evening. Residents of the neighborhood where San Bernardino officials plan major redevelopment work walked around their apartments while carrying signs Saturday to signal their opposition to any plans that would require them to move."

Source: The Contra Costa Times, July 31, 2009
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Even if the report overestimates the costs by a factor of two and underestimates the tax-benefit by a similar amount, the conclusion would be pretty much the same: destination resorts cost local government and taxpayers money.