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September 3, 2008

Take Action! Oppose State's Attempt To Raid Local Redevelopment Funding

Consideration is being given by budget negotiators in Sacramento to re-program revenues from local redevelopment agencies for use in reducing 2008 general fund shortfalls.

The Corona Chamber strongly rejects this idea.

Why Is This Important To You?

Redevelopment projects act as an “economic stimulus package.” Redevelopment investments in California generate about $32 billion in total economic activity and support 310,000 jobs, most of which are good-paying construction jobs with benefits. Cutting funding for redevelopment makes no sense at a time when State government is searching for more tax revenue. Redevelopment investments generate nearly $1.6 billion in state and local taxes annually.

A proposal such as the one that would re-direct redevelopment funds away from housing and economic development is both economically and fiscally unwise and should be rejected.

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September 2, 2008 Honorable Arnold Schwarzenegger Governor, State of California State Capitol Sacramento, CA 95814 Via Fax: (951) 680-6863 SUBJECT: RE-PROGRAMMING OF LOCAL REDEVELOPMENT AGENCY REVENUES Dear Governor Schwarzenegger: It is my understanding that consideration is being given by budget negotiators to re-program revenues from local redevelopment agencies for use in reducing 2008 general fund shortfalls. I strongly recommend that you reject this idea, which is in direct conflict with your objectives of reviving California’s beleaguered housing industry and strengthening the state’s economy. While a transfer of redevelopment funds may close a budget gap, it opens up another one elsewhere. Indeed, every year, local redevelopment agencies produce well over 10,000 units of housing. In that regard, redevelopment funding not only represents a critical source of capital for helping to meet California’s affordable housing needs, the corresponding construction activity generates profound economic and fiscal benefits for the state. Redevelopment projects act as an “economic stimulus package.” Redevelopment investments in California generate about $32 billion in total economic activity and support 310,000 jobs, most of which are good-paying construction jobs with benefits. Cutting funding for redevelopment makes no sense at a time when State government is searching for more tax revenue. Redevelopment investments generate nearly $1.6 billion in state and local taxes annually. A proposal such as the one that would re-direct redevelopment funds away from housing and economic development is both economically and fiscally unwise and should be rejected.

December 10, 2007

Corona Chamber Seeks Answers to the Housing Market Collapse

The housing industry is a major economic engine for Corona and the region. As the housing market has slowed, businesses are beginning to suffer losses and the pain is spreading to local, state and federal government budgets. As the Riverside Press Enterprise headline states, “Belt-tightening over slower growth awaits area governments.”

Last month, I met with the Riverside County Chapter of the Building Industry Association of Southern California (Riverside BIA) to discuss potential partnerships between the Riverside BIA and the Corona Chamber to educate elected officials on the need to streamline Riverside County’s building permit process.

It is no secret that housing production has declined by more than 50% in the last year. According to the Construction Industry Research Board, construction has declined from almost 29,994 homes in 2005 to 20,692 in 2006 to a projected 9,926 homes this year.

On average, every new home represents approximately $50,000 in homebuyer/developer fees. Since 2005, revenues have declined from $1.5 billion to $496 million (a loss of more than $1 billion).

Land values have collapsed, which will erode property tax revenues and directly impact transportation, public safety, parks and recreation and other important government services.

The current Corona Chamber-supported plan is to develop a coalition with the Riverside BIA to educate elected officials, participate in the public debate and identify and recruit additional coalition partners that will help gain momentum, diversity and achieve success.

We will find success in ensuring from the County of Riverside that they take seriously the need to not only streamline the prolonged entitlement and permitting processes but to understand that now is not the time to increase homebuyer/developer fees.

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