California Redevelopment Association Begins Process of Dissolving Association

Sacramento, CA – In a letter to more than 360 redevelopment agencies and to city managers statewide, the California Redevelopment Association announced that it has initiated a process that will ultimately lead to the dissolution of the statewide association.

The letter from CRA President and Alhambra City Manager Julio Fuentes, and CRA Interim Executive Director Jim Kennedy reads, in part: Link to full letter here.

“(W)e are confronted with the unfortunate reality that the years of incredible success with redevelopment – building affordable housing, creating jobs, cleaning up and reusing contaminated sites, and revitalizing communities – have now come to an end due to a policy choice of the State of California to address its fiscal imbalance in part by dissolving redevelopment agencies. As a result, cities and counties in California will, at least for a time, have to address community revitalization needs without this incredibly powerful tool.

“With the dissolution of local redevelopment agencies as of February 1, it has become clear to the board and executive staff that the business plan for CRA is no longer sustainable.  (T)he CRA Board of Directors has now concluded with great reluctance that it has no other prudent choice but to initiate the dissolution of the association. This process will take a period of time… (and) will include a membership vote to affirm dissolution actions that the Board of Directors will be asked to take.”

Fuentes and Kennedy explain that the League of California Cities has already taken a leadership role in discussing the future of any “next generation” local community revitalization tool:

“The League of California Cities has already convened a Next Generation Task Force to assist in these discussions. The imperative for California’s communities to continue addressing their infrastructure, affordable housing, jobs/economic development, brownfield reuse, and military base reuse challenges remains.  We encourage CRA members to stay active with your local legislators and the League of California Cities as the State Legislature discusses both fixes to current law, and the next generation of local government tools for community revitalization.”

For more information about the California Redevelopment Association, visit www.calredevelop.org.

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