The Death and Life of Redevelopment in California

Kicking off their new long-form Forefront initiative, Josh Stephens writes for Next American City on the killing of the country’s largest redevelopment program, and its implications for economic and real estate development.

1 minute read

April 17, 2012, 1:00 PM PDT

By Jonathan Nettler @nettsj


In focusing on case studies of the East Bay cities of Emeryville and Oakland, where the program's chief executioner, Governor Jerry Brown, used redevelopment funds as a key tool in improving the city's physical environment and economy during his successful run as mayor in the last decade, Stephens "explores the efficacy of redevelopment efforts and the financing tool that powered them, Tax Increment Financing."

Stephens also tells the wider story of the "controversial, if much-imitated, method of funding blight clearance and redevelopment" which has been used by California and 48 other states to "create redevelopment plans, fund local infrastructure improvements, assemble parcels, assist developers, broker deals and sell bonds to pay for all of the above."

With a tool described as "the only consistent source of funding for local economic and real estate development" hastily removed from their belts, Stephens asks the philosophical question underpinning the entire redevelopment discussion -- how will cities develop new financing mechanisms to "create an appealing, functional urban landscape," or will they even need to?

"Though redevelopment professionals readily point to cause and effect between redevelopment funds and new projects, critics question whether projects would've moved forward, even without the government assistance. They further question whether projects built in redevelopment project areas would not have simply been built nearby: Are states spending billions to subsidize business relocations?"

Friday, April 13, 2012 in Next American City

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 2, 2025 - Diana Ionescu

Aerial view of town of Wailuku in Maui, Hawaii with mountains in background against cloudy sunset sky.

Maui's Vacation Rental Debate Turns Ugly

Verbal attacks, misinformation campaigns and fistfights plague a high-stakes debate to convert thousands of vacation rentals into long-term housing.

July 1, 2025 - Honolulu Civil Beat

Person wearing mask walking through temporary outdoor dining setup lined with bistro lights at dusk in New York City.

Restaurant Patios Were a Pandemic Win — Why Were They so Hard to Keep?

Social distancing requirements and changes in travel patterns prompted cities to pilot new uses for street and sidewalk space. Then it got complicated.

June 19, 2025 - Diana Ionescu

Aerial view of new neifhborhood under construction with enpty lots in foreground.

In California Battle of Housing vs. Environment, Housing Just Won

A new state law significantly limits the power of CEQA, an environmental review law that served as a powerful tool for blocking new development.

July 2 - CALmatters

Low-rise Pearl Sreet mall in Boulfer, Colorado.

Boulder Eliminates Parking Minimums Citywide

Officials estimate the cost of building a single underground parking space at up to $100,000.

July 2 - Boulder Reporting Lab

Two-story buildings with porches in walkable Florida neighborhood.

Orange County, Florida Adopts Largest US “Sprawl Repair” Code

The ‘Orange Code’ seeks to rectify decades of sprawl-inducing, car-oriented development.

July 2 - CNU Public Square