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Successor Agency to the Arcadia Redevelopment Agency

Arcadia Redevelopment Agency – Redevelopment Ended in California:

The Central Redevelopment Project Area was approved in 1973.  There were many successful developments throughout the project area, including the transformation of Huntington Drive between Second and Fifth Avenues into a vibrant area of restaurants, retail, offices, and hotels.  The revenues and jobs created in this area have been an important foundation for the City of Arcadia for many years.

In June 2011, the California State Legislature passed, and Governor Brown signed, two bills, AB 1X 26 and AB 1X 27 that were designed to end redevelopment in California, except if a city decided to pay a ransom to remain in existence.  In December 2011, the California Supreme Court ruled on a lawsuit challenging the constitutionality of these bills.  The Court decided that it was constitutional to end redevelopment, but not to require the ransom payment.  When efforts to delay or modify the impact of the State Supreme Court ruling failed, redevelopment in Arcadia, and all of California, ended on February 1, 2012.
 
How Redevelopment is Being Dissolved:

Assembly Bill (AB) 1X 26 included some parts of the process to dissolve redevelopment agencies.  The first step was that on January 3, 2012, the Arcadia City Council opted to act as the Successor Agency to the Arcadia Redevelopment Agency.  This put the City Council in control and allows it to make decisions regarding the unwinding of redevelopment and the expenditure of funds for ongoing activities and projects that were in place when redevelopment ended.  On January 31, 2012, the Arcadia City Council voted to not act as the successor agency for housing.  The affordable housing assets of the former redevelopment agency have since been transferred to the Los Angeles County Housing Authority.

AB 1X 26 includes the requirement for successor agencies to prepare a new spreadsheet, known as the Recognized Obligation Payment Schedule (ROPS), which covers a six month period.  The ROPS is designed to identify items that were existing obligations of the redevelopment agency when it was dissolved.  Payments are made to the Successor Agency twice each year to pay the existing obligations, based on the approved ROPS. 1X 26 also established Oversight Boards that would be responsible for specific review and approval of actions taken by the Successor Agency, including approval of the ROPS and the Successor Agency administrative budget.  The Los Angeles County Fifth District Supervisorial Oversight Board currently acts as the oversight board of the Arcadia Successor Agency.  After all approvals have been given, the ROPS is forwarded to the California Department of Finance, the California State Controller’s Office, and the Los Angeles County Auditor-Controller, and posted on the City’s website.

2019-20 ROPS
2020-21 ROPS
2021-22 ROPS

The Arcadia Successor Agency is also responsible for developing and implementing a long-term management plan for the real estate that was owned by the Arcadia Redevelopment Agency at the time of dissolution.  The Arcadia Long Range Property Management Plan (below) was approved by the Arcadia City Council, acting as the Successor Agency to the Redevelopment Agency, on November 20, 2012, and the Arcadia Oversight Board on January 8, 2013.  The Arcadia Long Range Plan provides details on the five commercial properties that were owned by the Arcadia Redevelopment Agency.  It includes background, current status, and plans for disposition for each property.  The Long Range Plan was submitted to the Department of Finance on January 17, 2013.   All five commercial properties owned at the time of Agency dissolution have now been sold.  

Long Range Property Management Plan - 1-17-13

CONTACT INFORMATION:

Tim Schwehr
Senior Management Analyst
(626) 574-5409
tschwehr@ArcadiaCA.gov 
Published: May 24, 2021