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 will be 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.  For each six month period, a new ROPS is prepared.  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.  It is also posted on the City’s website.  You can find the ROPS  here.  Payments are made to the successor agency twice each year to pay the existing obligations, based on an approved ROPS.    

AB 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 oversight board consists of seven people appointed by and/or to represent different taxing entities from the former project area.  Two members are selected by the local city council, two by the county, and one each from the County School Superintendent, the largest taxing organization, and the State Chancellor of Community Colleges.  The oversight board follows the Brown Act requirement for open meetings which allows the public to attend.  The Arcadia Oversight Board includes the Arcadia Superintendent of Schools, a representative from Pasadena City College, and an appointment made by the Los Angeles County Sanitation District. Actions of the Oversight Board are reviewed by the Department of Finance. 

Arcadia Oversight Board Agendas

May 1, 2012
May 22, 2012
June 19, 2012
August 21, 2012
October 2, 2012
October 9, 2012
January 8, 2013
February 12, 2013
June 4, 2013
July 23, 2013
September 24, 2013
February 18, 2014
February 24, 2015
September 22, 2015
January 26, 2016
January 24, 2017

Arcadia Oversight Board Minutes

May 1, 2012
May 22, 2012
June 19, 2012
August 21, 2012
October 2, 2012
October 9, 2012
December 11, 2012
January 8, 2013
February 12, 2013
June 4, 2013
July 23, 2013
September 24, 2013 
September 16, 2014
February 24, 2015
September 22, 2015
January 26, 2016

The Arcadia Successor Agency and the Arcadia Oversight Board are also responsible for developing a long term management plan for the real estate that was owned by the Arcadia Redevelopment Agency at the time of dissolution.  Assembly Bill (AB) 1484 that was signed into law by Governor Brown on June 26, 2012 revised many of the steps involved in unwinding redevelopment and modified certain deadlines.  AB 1484 gave broader authority to the Department of Finance than it had under AB 1X 26.  One of those revisions requires the successor agency to present a long range property management plan to the Department of Finance, after first being approved by the successor agency and the oversight board.  The successor agency cannot sell any property until the DOF approves the long range property management plan. 

As this process evolves, there will be additions and modifications to this page. 

Due Diligence Review of Low and Moderate Income Housing Fund

The Long Range Property Management Plan is required by Assembly Bill 1484, which was signed into law in late June, 2012. The Long Range Plan identifies properties that were owned by the former redevelopment agency at the time redevelopment ended on February 1, 2012.  The Long Range Plan provides details on each property per Health and Safety Code Section 34191.5(c)(1).

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. 

Long Range Property Management Plan - 1-17-13

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