Redevelopment Agency May Be Out Of Business

Posted by: Chris Steins
Thanks to: Paul Shigley

4 January 2002 - 9:00am

The biggest redevelopment agency in California may put itself out of business unless the state Legislature comes to the rescue.

"The always-aggressive redevelopment agency in San Jose, CA plans to issue 30-year bonds this month, but the city's authority to collect tax increment to pay off the bonds ends in 16 years. Something has to give... The San Jose Redevelopment Agency collects almost $175 million per year in property tax increment. That is by far the most of any redevelopment agency in California. It’s 7% of the overall state redevelopment total. It’s 50% more than the gigantic Los Angeles Community Redevelopment Agency."

Full Story: San Jose Issues Tax-Increment Bonds--And a Dare to State Lawmakers

Source: California Planning and Development Report, January 4, 2002