Union City Plays Defense Against State to Protect Redevelopment Projects

In an attempt to protect critical city improvements, the established contracts last Friday, Jan. 14, with the to bind the agency to specified projects.

Friday night’s emergency meeting was an effort to beat pending state legislation that would put a hold on all new redevelopment projects while legislators hash out a budget.

Union City is one of many cities across the states to make similar agreements with redevelopment agencies.

Last week, Gov. Jerry Brown released his . Among other actions, the plan would eliminate the state's nearly 400 redevelopment agencies by July 1, 2011. Dismantling the agencies would return billions of dollars in property tax revenues to cities, counties and schools.

“It’s one of the most foolish pieces of legislation that’s ever been introduced since I’ve been in office,” said Union City Mayor Mark Green.

Redevelopment agencies play a key role in the revitalization of poor and blighted areas. According to Green, redevelopment has also provided a majority of construction jobs during the economic recession, one of the hardest hit sectors of the economy.

“The hypocrisy is astounding,” Green said. “The governor lived in a redevelopment zone in Oakland, he lives in one now in Sacramento and he had his victory celebration at the Fox Theatre [in Oakland], which was a redevelopment project.”

By establishing this agreement on Friday, the city hopes to protect $28 million in grant funds and $25 million in redevelopment agency cash, allowing the agency to fund critical development projects.

“We’re not guaranteeing it’s going to work, but it’s the best we can do,” said Redevelopment Agency Manager Mark Evanoff.

After receiving initial news about the governor’s proposal, Evanoff planned to establish as many projects as the agency could by the proposed July 1 disestablishment date.

He was notified last Tuesday that the Department of Finance planned to issue an urgency legislature to prohibit any contracts from being established after Jan. 10.

According to Evanoff, the state will vote on the urgency legislation Jan. 18.

Among the projects the city is trying to protect is the completion of the , a transit-oriented and pedestrian-friendly development centered around the BART station.

The portion of the development that is in design but does not have construction contracts is Phase 2 of the project. That portion would create a second entrance to the BART station, a public plaza and a pedestrian promenade from Union Square Marketplace to the new housing developments that are currently under construction.

The agreement may also protect future tax increments and the ability to issue bonds. If allowed to issue future bonds, the agency would be able to fund or help fund other projects, including the construction of a pedestrian bridge and a public building within the station district, passenger rail improvements and improvements in the Horner-Veasy area, a region located on the far west side of the city with 19 acres of inadequate drainage and substandard roads, according to Evanoff.

“We’re having to play defense right now against our own government,” Green said.

The mayor called the governor’s proposal and the urgency legislation “threats.”

“Any state legislator who votes for this urgency legislation to freeze redevelopment assets, or who votes to eliminate agencies, should never ask me for an endorsement, for a campaign contribution or ask me to vote for them because none of those things will ever happen,” Green said.