The State Supreme Court announced its
long-awaited decision in late December concerning the constitutionality of two controversial bills brought forward in a lawsuit by the California Redevelopment Association (CRA). All cities were mandated to dissolve their redevelopment agencies by Feb. 1, 2012 
and to create a successor agency to conclude the affairs of the former agency in conjunction with a seven-member Oversight Board.

On Jan. 9, the Alhambra City Council complied with the new law by approving a resolution allowing itself to act as the successor agency. The oversight panel will be comprised of two members appointed by the mayor, two by the county board of supervisors, one by the special districts in the former RDA, one by the county school superintendent, and one by the local community college chancellor.

The City, acting as successor agency, will enforce any and all obligations and agreements that are currently in place. This will enable the City to participate in the transfer and liquidation of Alhambra's agency assets, development projects in process and an opportunity to oversee the transfer of housing functions and land assets.

The Council also approved a second resolution that will enable the City to retain the affordable housing assets and functions formerly performed by the ARA. Under this scenario, funding for housing activities will come from
the disposition of housing assets, unless legislation is adopted allowing continued Low/Mod Housing funding. The City will not receive any tax increment for new housing activities.
 

 

 

BMW dealership: Many of the Auto Row dealerships
on Main Street were recruited by the Alhambra Redevelopment Agency and given financial
incentives to locate and/or expand, leading to approximately $3.3 million annually in sales
tax revenue to the City.
 

Howard Street Townhomes
Affordable Housing Project

 The State Controller and State Department of Finance will play an important role in overseeing the Oversight Committee. The Department of Finance can overturn any action
by an Oversight Committee, giving state employees full discretion over the disposition
of millions of dollars in Alhambra taxpayer assets.

 
The Supreme Court’s long-awaited decision upheld the constitutionality of ABX1 26 in a lawsuit by the California Redevelopment Association (CRA). The court’s decision was devastating news to California cities and redevelopment agencies in that it upheld ABX1 26. According to the Court, ABX1 26 gives state lawmakers the power to eliminate redevelopment. ABX1 27, which would have provided a means for agencies to continue operating in exchange for a monetary payment to the State was invalidated.

Like all cities with redevelopment agencies, the City of Alhambra is extremely disappointed by the court’s decision — dealing a tremendous blow to the city and state’s “economic engine” and the creation of new jobs — especially since nothing has been put in place or even proposed by the Legislature or Governor as an alternative. 

Over the years, Alhambra has successfully implemented redevelopment to stimulate economic growth, revitalize neighborhoods, and generate tax revenues. It has made possible such projects as the Alhambra Renaissance Plaza, Fremont Plaza, Auto Row, Alhambra Regency Plaza, Alhambra Courtyard Plaza, Main Street Plaza, Ross-Dress-For-Less, Kohl’s, Costco, Home Depot, as well as numerous downtown restaurants, retail boutiques and entertainment venues.
 

Plaza on Main: This mixed-use redevelopment project created much needed retail space
(including a Denny's Restaurant), affordable
housing for seniors, and the elimination of slum
and blight. The completed project has provided
the City with $20,000 per year in sales tax revenue
and $44,344 in annual property tax revenue.

 By creating a viable economic base, many additional businesses have recognized the importance of establishing a business presence or have expanded into Alhambra.

 
Businesses that have established themselves and/or expanded their operations in Alhambra without redevelopment assistance include, but are not limited to, the expansion of Target, Shops at the Alhambra, Walgreens and CVS stores, bank operations such as Empire Financial Center and Shanghai Bank building on Valley Boulevard, and a number of medical offices on Garfield Avenue. 

Related:

• Listing of completed redevelopment projects
   
• View response by the Alhambra
  Chamber of Commerce concerning
  the elimination of redevelopment
  (published in the February 2012
  issue of Around Alhambra) 

 Main Street businesses provided redevelopment assistance include 38° Ale House & Grill, Azul Bar & Nightclub, Blitz Ultra Lounge, CB After Dark, Charlie's Trio, Frontera's, Havana House, Mosaic Lizard Theater, Mahan Indian Restaurant, Medium Rare+ Casual Steakhouse, Perfectly Sweet, Ross Dress-For-Less, Senior Fish, Starbuck's, Coldstone Creamery & Shaka's, Subway, & The Boiling Crab.

ADDITIONAL REDEVELOPMENT PROJECTS (BEFORE/AFTER PHOTOS)

 
38° Ale House & Grill
 

 
Alhambra Courtyard Plaza (Anchor: Ralph's Supermarket)
 

The Boiling Crab
  

 
Boteco Brazilian Restaurant / Bar / Lounge (formerly Cuban Bistro Restaurant)
 

First Avenue Parking Structure
 

 
Havana House
 

Lovebird's Cafe & Bakery
 

Main Street Plaza (Anchor: Smart & Final)
  

Regency Plaza Mixed-Use Commercial/Residential Complex
 

Ross Dress-for-Less  
 

Senior Fish Restaurant
  

 
Starbuck's, Coldstone Creamery & Shaka's