Homeless Outreach, Economic Development Projects in Peril as Redevelopment Agency Disbanded

A three-person economic development team — tasked with sparking interest and attracting new development to Rohnert Park, keeping local businesses here and largely, giving this town an identity — is scrambling now, as the largest economic driver here has been defunded: redevelopment.

As of Feb. 1, roughly 400 redevelopment agencies statewide have been dissolved. Planners, developers and elected officials have long-relied on the property tax dollars to fund affordable housing projects, turn dilapidated sections of town vibrant and to fund pet projects of city councils in the name of economic development.

State Controller John Chiang criticized cities and counties throughout California, however, for questionable spending on redevelopment projects.

"Under current legal standards, virtually any condition could be construed as blight," Chiang said in a 2011 report that called out 18 redevelopment agencies, citing audit violations, reporting deficiencies, and ineligible charges made against low and moderate income housing funds among other shortcomings.

The Rohnert Park City Council defended their actions, while acknowledging that some cities have doctored the meaning of blight, ultimately leading to what critics called misuse of taxpayer money.

Chiang said in his report that most problematic is that cities "share no consensus in defining a blighted area." He offered a few examples:

"While run-down sections of Los Angeles with abandoned buildings show obvious need for redevelopment, other cities were far broader in their declaration of blight. Coronado’s redevelopment area covers every privately-owned parcel in the city, including multi-million dollar beachfront homes. In Palm Desert, redevelopment dollars are being used to renovate greens and bunkers at a 4.5 star golf resort. That RDA receives the 10th-highest tax revenue in the State, with a fund balance worth $4,666 for each of the city’s 52,000 residents."

"This is going to be a huge loss to our community," said Councilwoman Gina Belforte. "Some communities broke multiple laws and didn’t follow guidelines, but Rohnert Park is not one of those cities; we've been using the money wisely." 

The city's redevelopment project area was created in 1987. The area deemed blighted reaches south to include what's now Sonoma Mountain Village, east to include parts of City Center Plaza, west to Martin Avenue and furthest north to Roberts Lake Road.

Original planning documents drafted 25 years ago outline what today's City Council says are legitimate projects and ideas. Monies were to be used to:

• Provide financing assistance to encourage commercial and industrial development.
• Provide relocation assistance to residents who are displaced from their homes.
• Fund public and private open spaces.
• Revitalize property characterized by deterioration, blight or functional obsolescence and to encourage continued investment in the
  project area where growth is planned.
• Improve the visual image of the city and, specifically, the project area.
• Improve employment opportunities, economic stability and productivity
  and to increase pUblic revenues within the project area.
• Foster the development of a sense of community identity within
  the project area and to ensure a variety of commercial, office, and/or industrial land uses which will physically and economically complement development.
• Encourage the development of commercial uses along major thoroughfares.

Sound familiar? Linda Babonis, who heads the here, was formerly the city's redevelopment manager. The way she describes it, these fundamental goals haven't changed.

Babonis championed , City Center Plaza. Money has also been used to foster entrepreneurialism in Rohnert Park, she said. In 2010, the City Council OK'd an $888,000 grant for the . The Community Center has undergone significant upgrades and remodels, and sewer lines have been replaced.

But most crippling, Babonis said, is the : Sonoma County Adult and Youth Development, the Committee on the Shelterless and Rebuilding Together. , though the money came out of affordable housing funds.

"This is devastating," Babonis said. "These programs help people who are homeless, or down on their luck by offering things like one-time rental assistance, housing for the homeless and services for seniors and the disabled."

Nonprofits say no doubt funding is uncertain, as redevelopment money is diverted to the state.

 “If the funding goes away for the program, services go away, we have 893 family members at risk,” said John Records, the executive director for COTS. “These are families working on rebuilding their lives — going to school, learning how to be great parents, transitioning from homelessness.”

“,” he added. “The economy is making it much harder for people and it shows — they’re struggling. That’s when we’re here to help.”

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The City Council echoed Babonis.

"What's going to happen now?" Belforte said. "We have more than 300 families here that use our homeless prevention programs, and nearly half of the people are children — that's the biggest crime of all."

Councilman Joe Callinan said on one hand, he understands why the state is taking the money.

"Some have abused the system," he said. "Where redevelopment money has not been used for what it's supposed to; but Rohnrt Park has been diligent in using it for what‘s it’s for — housing and to get rid of blight."

Babonis championed . A proposed "Facade Improvement and Commercial Rehabilitation Loan Program," for example, would offer loans to small business owners who wanted to renovate their dilapidated exteriors, rehabilitate their interiors and improve signage.

Another project in peril would flip three city-owned vacant properties into affordable housing hubs. But now officials are clambering to keep up with rapidly-changing legislation that could deal a blow to efforts to turn Rohnert Park around economically and keep in place critical safety-net programs.

"People are losing jobs. It's getting harder and harder for small businesses, and people are losing their homes that never before had financial problems," she said. "Now we have to explore new alternatives and funding sources for moving forward."

Gov. Jerry Brown said disbanding the agencies would reduce the state budget deficit, saving $1.7 billion in the 2011-2012 budget year, and redistributing property tax revenue to cities, counties and special districts, to schools and police and fire.

Editor's note: check out photos and a video to the right of the destruction of the former Southwest Fire Station. The building was taken down last year, funded by redevelopment money. Now, plans to construct in its place an affordable housing development face uncertainty. The project area map is also included.