Business & Economy

Long Beach squirrels away redevelopment money

Listen to story

Download this story 0MB

Long Beach is the latest city that seeks to protect its redevelopment money from the state.

The Long Beach Redevelopment Agency Board has voted to commit more than $1 billion for dozens of new projects over the next decade.

Typically, redevelopment agencies strike agreements with developers to provide money for projects in blighted areas. Faced with Governor Brown’s proposal to eliminate them, those agencies have rushed to strike project agreements with their city councils – and have said they’ll find a developer later if they need one.

Under state law, the increased tax revenues redevelopment projects generate, known as tax increments, go to redevelopment agencies instead of to the state.

By eliminating redevelopment agencies, the governor estimates that the state would gain $1.7 billion in tax increments next year to help address a $25 billion deficit. About 83 million of those dollars were supposed to come from Long Beach.