InfrastructureNews

LAEDC Joins 16 Organizations Statewide in Support of SB 33 (IFD Law Reform)

By April 8, 2013 No Comments

April 5, 2013

Senator Kevin de Leon, Chair

Senate Appropriations Committee
State Capitol, Room 5108
Sacramento, CA 95814
 
Senator Mimi Walters, Vice Chair
Senate Appropriations Committee
State Capitol, Room 3086
Sacramento, CA 95814
 

Re:       SB 33 – SUPPORT

Dear Senators de Leon and Walters:

We, the undersigned, a network of steward leaders representing all sectors (e.g., nonprofit, private, public, education, etc.) from California’s diverse economic regions who are dedicated to promoting a shared action agenda to catalyze California’s economic recovery through regional strategies, respectfully urge your support of Senate Bill (SB) 33 (Wolk)—a measure that would make it easier to establish Infrastructure Financing Districts throughout the State of California, enabling the development of critical infrastructure and offering communities a much-needed tool, especially with the demise of Redevelopment Agencies (RDA), to create jobs, reduce blight, and invigorate neighborhoods.

As you know, Infrastructure Financing Districts (IFDs) provide an opportunity for local governments to fund public infrastructure (such as highways, transit facilities, and libraries) by using bond proceeds that are repaid through property tax increment.  While IFDs have been authorized in statute since 1990, overly complex and onerous barriers (such as the requirement of two-thirds voter approval for both the creation of the IFD and bonds associated with it) have prevented its full utilization.  Though several efforts have been made to apply IFDs to specific local areas—such as San Francisco with AB 1199 (Ammiano) in 2010 and San Diego with SB 207 (Peace) in 1999—only a handful of projects have been delivered using this broader statutory authority in over 20 years.

SB 33 removes some of the most onerous barriers associated with the creation of and issuance of bonds tied to IFDs, including:

  • Removing the two-thirds vote requirement associated with forming an IFD;
  • Removing the two-thirds vote requirement for issuing IFD-associated bonds;
  • Extending the life of an IFD from 30 years to 40 years, which increases an IFD’s bonding capacity; and
  • Removing the prohibition against an IFD including any portion of a redevelopment project area.

Even more, SB 33 provides for several layers of additional accountability for IFDs by establishing a public financing authority made up of three members of the city council or board of supervisors that established the district and two members of the public as well as a public accountability committee to review the public financing authority’s actions.

With the elimination of RDA, local governments are in critical need of additional tools—like IFDs—to help finance and deliver much-needed infrastructure throughout the State of California.  As such, we want to urge your support for SB 33—a bill we see as critical to strengthening our economy and providing local governments with needed tools to support California communities after redevelopment’s demise.

Sincerely,

Bill Allen
President & CEO
Los Angeles County Economic Development Corporation
 
Cynthia Kurtz, President & CEO
San Gabriel Valley Economic Partnership
 
MICHAEL E. MANCHAK
President/CEO
Economic Vitality Corporation
of San Luis Obispo County
 
Paul Granillo
President & CEO
Inland Empire Economic Partnership
 
Barbara deBoom,
President/CEO
Palm Desert Area Chamber of Commerce
 
Steve Diels
President, Los Angeles Division,
League of California Cities Council Member
City of Redondo Beach
 
Karen Engel
Executive Director
East Bay Economic Development Alliance
 
Cynthia Murray
President & CEO
North Bay Leadership Council
 
Randy Gordon
President & CEO
Long Beach Area Chamber of Commerce
 
Lucy Dunn
President & CEO
Orange County Business Council
 
Bob Linscheid
President & CEO
San Francisco Chamber of Commerce
 
Mark Cafferty
President & CEO
San Diego Regional Economic Development Corporation
 
Gary Toebben
President & CEO
Los Angeles Area Chamber of Commerce
 
Roger Niello
President & CEO
Sacramento Metro Chamber of Commerce
 
Ronald Kopf
Executive Director
Tuolumne County Business Council
 
James Nagle
President, Board of Directors
Yosemite Chamber of Commerce

 

cc:     Honorable Members of the California Appropriations Committee
           Senator Lois Wolk