This post was contributed by a community member. The views expressed here are the author's own.

Politics & Government

City Hosts Town Hall Meeting on Redevelopment

Residents, citizens, and voters are invited to learn how redevelopment has transformed their city and to hear .  

In light of the state budget crisis and the threat to end redevelopment, the city of Milpitas will host its last of three Town Hall Meetings tonight about why redevelopment is vital to economic growth, job creation and funding for public schools. The meeting will cover the history of achievements of the Milpitas Redevelopment Agency, how redevelopment projects are funded, where redevelopment stands in the California State budget, and the impact of the Governor’s plan to eliminate redevelopment agencies. 

Who: Hosted by the city of Milpitas. 
Meetings to be facilitated by Diana Barnhart, economic development manager for the City of Milpitas. Speakers to vary by meeting.  

Monday, February 28
6:30-8 p.m.
Community Auditorium
Milpitas Senior Center 

Background:
The City of Milpitas has fundamentally changed and improved since 1958, thanks to the funding and energy provided by projects of the Milpitas Redevelopment Agency. The Agency has completed some significant contributions to the economy and quality of life in Milpitas:

  • Provided assistance to the developers of the Great Mall of Northern California through renovation of the Ford assembly plant;
  • Built the new Milpitas Public Library;
  • Built three freeway interchanges on the heavily used highway I-880;
  • Implemented flood zone improvements that helped to attract businesses in southwest Milpitas such as Linear Technology, Cisco Systems and KLA-Tencor, among many others;
  • Assisted in bringing needed manufacturing jobs back to Silicon Valley; and
  • Constructed nearly 1,500 affordable housing units.

Redevelopment projects have attracted between 10,000 - 15,000 jobs to Milpitas. Many of the largest employers in Milpitas are located in redevelopment areas, attracted to Milpitas through the city's redevelopment policies. Large businesses provide opportunities to the small businesses in close proximity.

Find out what's happening in Milpitaswith free, real-time updates from Patch.

The mission of the Milpitas Redevelopment Agency, which was founded in 1958, is to eliminate blight, to increase job growth and business growth, and to provide affordable housing.

How the Agency achieves these goals is complex. Property owners in a redevelopment area pay property taxes based on assessed valuation when the redevelopment area is formed. All agencies continue to receive the same tax revenue they received when the redevelopment project area was formed. As property values increase, any increase in property tax revenue from the increased value, known as the "tax increment", goes to the redevelopment agency to pay back bonds, fund new projects, and “pass through” revenue to government agencies and schools. To date the Agency has passed through nearly $12 Million to local agencies such as the Milpitas Unified School District.

Find out what's happening in Milpitaswith free, real-time updates from Patch.

California is facing the most severe budget crisis in generations, and the state legislator and governor are looking at all possible ways to achieve a balanced budget.  Under consideration is the diversion of redevelopment funds from the local communities to the State. The city of Milpitas is undertaking an effort to educate the community on how redevelopment operates and what it has done for the community, to help guide voters and concerned Milpitas residents.

The immediate future of redevelopment is in flux. The Senate and Assembly Budget Committees voted to support the Governor’s proposal to eliminate redevelopment, with the Assembly budget committee qualifying its support of the Governor’s proposal by recommending the adoption of "Placeholder trailer bill language … which may include reform in lieu of elimination.” Despite the Assembly budget committee’s recommendation, the Department of Finance issued legislation calling for the elimination of redevelopment on Wednesday, February 23. A budgetary decision on redevelopment must pass a floor vote at the State legislature, which Governor Brown has targeted for no later than March 10, according to a report from the Los Angeles Times.

Ending the Milpitas Redevelopment Agency would mean the loss of not only millions in transfer funding but also put needed work on community betterment at risk. For example, without the Redevelopment Agency, job stimulation projects and critically needed affordable housing projects might never come to be.

The city of Milpitas has recently used its redevelopment program to protect existing and create new jobs at Flextronics Inc., which contracted with SunPower Corporation to be the only U.S. manufacturing plant for SunPower solar panels.

The city needs a continued supply of redevelopment funds for continued community improvement.  Continued redevelopment funds will provide financial assistance for business retention and attraction as well as flood control and other major infrastructure improvements that will protect the job centers and many residential neighborhoods of Milpitas. Long-term projects that will not likely be funded without redevelopment assistance are:

  • Infrastructure projects to implement the Transit Area Master Plan
  • Redevelopment of older, blighted shopping centers
  • Revenue generating projects such as a conference center
  • Provision of affordable housing
  • Community serving projects similar to the Barbara Lee Senior Center and the Milpitas Public Library

The city of Milpitas Redevelopment Agency will be hosting displays, videos and additional in-depth information on redevelopment online and at the Milpitas Public Library.

We’ve removed the ability to reply as we work to make improvements. Learn more here

The views expressed in this post are the author's own. Want to post on Patch?