With the dissolution of California Redevelopment Agencies in 2011, those looking to spur economic development have struggled to find alternative tools that create investment in communities where such investments don't flow naturally.
Senate Bill 628, passed in the fall, created Enhanced Infrastructure Financing Districts—intended to fill the "hole" that dissolution left. Since EIFDs are still brand new, none have yet been implemented, although many local governments have taken initial steps.
To unpack the law's complexities, its applications, and its potential impact on revitalization efforts across the state, The Planning Report spoke with two experts on the legislation: Fred Silva, Senior Fiscal Policy Advisor at California Forward, and Mark Pisano, USC Price professor and former Southern California Association of Governments executive director. They delve into the specific mechanisms of EIFDs, explaining the tool’s scope, structure, and powers.
Silva clarifies that EIFDs actually improve upon the old model, in his view: "After the repeal of redevelopment, the tool of capturing growth in the property tax was basically eliminated. The choice facing the Economic Summit was: 'Should we just put that Redevelopment Authority back, and not allow it to have access to the schools’ property tax?' The answer was 'no'—it should have broader authority."
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