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Supervisors Change County Code to Align with State

Auburn, Calif.- At its regularly scheduled meeting on July 24, 2012, the Placer County Board of Supervisors approved changes to County Code to bring it in line with news state law regarding the dissolution of former redevelopment agencies.

Redevelopment agencies were originally enacted to eliminate blight and to foster economic growth in depressed areas. In response to state budget concerns, legislation was passed last year that eliminated these programs.

In June, enacted state legislation requires, among other things, state oversight of the accounting and processing associated with the dissolution, and the designation of the successor agency as a separate “public entity.” The County Code changes enacted by the Board on July 24 establish a Placer County Successor Agency according to state law, and designate the Board of Supervisors as the legislative body, which is the separate legal entity.

With the elimination of redevelopment agencies, Successor Agency staff is charged with disposing of parcels that have been purchased for projects planned in designated redevelopment areas, as well as other agency assets.  Earlier in the month, at the July 10 Supervisors’ meeting, Successor Agency staff presented the Board a report with recommendations for the disposition of parcels acquired by the former Placer County Redevelopment Agency (RDA). The 22 parcels are located in the Kings Beach area of North Lake Tahoe.

The Board also received an update on recently passed Assembly Bill 1484 which contains significantly new rules to clarify issues that arose from the early implementation of the Dissolution Act. This legislation assures disposition of all appropriate former RDA assets are returned to the taxing entity. Proceeds from any sales must be distributed in the same manner as normal property taxes are.

In February 2012, the passing of the Dissolution Act resulted in redevelopment agencies statewide ceasing to exist and redirected state funding that was previously dedicated for local infrastructure and economic development projects acquired through local Redevelopment Agencies.

The former state-funded Redevelopment Agency’s mission was to address substandard commercial development, improve inadequate infrastructure, support new development, increase and improve the supply of affordable housing, and provided for the ability to assemble and sell property for both public and private development. Now, to the contrary, Successor Agencies to the former Redevelopment Agencies were instituted with a mission to assume responsibility of and make recommendations for the disposition of all properties and assets acquired through the former Redevelopment Agency. 

Even though the Successor Agency is independent from Placer County, as was the former Placer County Redevelopment Agency, the Placer County Board of Supervisors continues as the Governing Body making decisions on Successor Agency recommendations. 

Additionally, to facilitate the dissolution process, each jurisdiction that had a redevelopment agency was required to convene an Oversight Board. The general role of the Oversight Board is to oversee the Successor Agency’s activities and will exist until all indebtedness has been resolved. The Placer County Oversight Board has been convened and is currently working with the Successor Agency to make disposition recommendations to the Board of Supervisors.  While it is uncertain the overall disposition of said properties, it is likely most will be sold.



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