What Does No Redevelopment Agency Mean for Montrose?

Although no immediate projects were planned for Montrose and La Crescenta Glendale officials predict the loss of Glendale's Redevelopment agency could strain schools, parks and businesses. 

“The last few years have seen unparalleled burdens placed on local governments by Sacramento,” Mayor Laura Friedman said in a news release. “In the last two years alone, the State has seized $13 million from the City of Glendale.”

“This loss will impact our schools, parks and businesses in the redevelopment area. It will negatively impact job creation in our community, the development of affordable housing, and desperately needed new and sustainable sales tax revenue,” Friedman said.

The Redevelopment Agency helped to build the Adult Recreational Facility, Fire Station 21, Embassy Suites and Hilton Hotel, Disney's Creative Campus, DreamWorks animation studio, several community parks, the Glendale Galleria and the Americana at Brand projects, Friedman said.

Redevelopment also provided about 1,000 affordable housing units in Glendale, she said.  

"Combined, these projects have created thousands of jobs and contributed substantial sales tax revenues that will be sustainable for years to come,” Friedman said. 

California Supreme Court upheld a law that  and struck down a law that allowed the agencies to pay to stay in operation on Dec. 29. 

The ruling in California Redevelopment Association v. Matosantos clears the way for the state to dismantle redevelopment agencies and use their assets to fund education programs. The CRA contended that the state did not have the authority to eliminate redevelopment agencies, but the court disagreed.

"[The state's] power includes the authority to create entities, such as redevelopment agencies, to carry out the state's ends and the corollary power to dissolve those same entities when the legislature deems it necessary and proper," the court's ruling reads.

“The City of Glendale is confident that all is not lost,” said Councilmember Rafi Manoukian, Chairman of the Glendale Redevelopment Agency, “and we will continue to fight for economic vitality.” 

In a recent report to the City Council, four notable redevelopment projects in Glendale generated $7.92 million to the Glendale's general fund, officials said. That amount is equivalent to the entire Glendale Public Library annual budget.  

“As we enter a new year, we will develop options to ensure continued development of affordable housing, improvement of our infrastructure and preservation of our economic viability in the region,” said Interim City Manager Yasmin Beers.

“We hope that the challenge before us will be overcome by working with local legislators in the State Assembly and Senate to develop a better strategy in helping them with the State’s budget woes," Beers said. "Our legislators, who represent our communities, will have no choice but to recognize the impacts we now face.”