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The End of Redevelopment and the Formation of the Successor Agency

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 Council Chambers Building

The cities and the State of California had a year-long battle over the elimination of redevelopment.

As part of the strategy to close funding gaps in the State’s budget, AB1X 26 and AB1X 27 were signed by the Governor on June, 29, 2011. AB1X 26 eliminates redevelopment and suspends redevelopment agency activities, including incurring indebtedness or entering into or modifying contracts. AB1X 27 establishes a new Alternative Voluntary Redevelopment Program that allows cities to “buy-back” their agency then continue their work improving communities.

On December 29, 2011, the California Supreme Court issued its decision to uphold Assembly Bill X1 26, the measure that was introduced to abolish redevelopment agencies statewide. The Supreme Court found the provisions of AB1X 27 unconstitutional. As a result of the court’s decisions, the City of Montclair lost one of its most vital tools used to promote economic development, create jobs, develop safe and attractive affordable housing, and support to its local businesses.Over the course of its 34 years in operation, the Montclair Redevelopment Agency administered and completed projects that invested millions of dollars in our local economy, and significantly contributed to the quality of life experienced by our City’s more than 37,000 residents who make Montclair their home.

The Agency’s Contributions to the Community

The Montclair Redevelopment Agency invested millions of dollars in the community, including but not limited to:

  • $15 million that supported public facilities including Alma Hofman Park improvements, the Montclair Community Collaborative Family Resource Center, and the Montclair Police Facility
  • $30 million that provided for crucial public infrastructure projects including the widening of Central Avenue a the I-10 Freeway, Mission Boulevard improvements, and the Ramona Avenue Grade Separation
  • $8.8 million that were invested in the City’s local economic development efforts and created over 600 jobs
  • $7.8 million that created safe, attractive, and affordable housing for low-income residents

The elimination of redevelopment has resulted in the loss of several programs and services provided by the Montclair Redevelopment Agency to residents and businesses.

The Successor Agency

On January 12, 2012, the City Council elected to become the successor agency of its former redevelopment agency. The City of Montclair Housing Authority elected to become the successor housing agency.The City and the Montclair Housing Authority, as successor agencies, became operative on February 1, 2012, when state legislation dissolved the Montclair Redevelopment Agency along with all other redevelopment agencies in the State of California.

Once dissolved, redevelopment agencies will only be able to make payments on existing obligations through their respective successor agencies. These obligations can be found on the Agency’s Recognized Obligation Payment Schedule (ROPS).

An Oversight Board made up of seven members will review and approve a Recognized Obligation Payment Schedule (ROPS), which will be used to pay obligations from January to June 2012. Another ROPS will be implemented for the July to December 2012 payment period. In addition, the Successor Agency is obligated to approve all actions of the Successor Agency.

Oversight Board

The Oversight Board was formed in April 2012 pursuant to AB1X 26, which dissolved all redevelopment agencies in the State of California. The seven member Oversight Board consists of the following seven members:

Chair William Ruh – Montclair Mayor Paul Eaton Appointee

Vice Chair Tenice Johnson – County of San Bernardino Citizen Appointee

Janet Kulbeck – City of Montclair Employee Organization Appointee (Michael Piotrowski – Alternate)

John Richardson – County of San Bernardino Appointee

Phil Hillman – Ontario-Montclair School District Appointee

Kati Parker – Inland Empire Utilities Agency Appointee (Christina Valencia – Alternate)

Kim Erickson – Chaffey Community College District Appointee

The Oversight Board has fiduciary responsibility to the holders of enforceable obligations and the taxing entities that benefit the distributions of the property tax and other revenue. The Oversight Board oversees the “winding down” process of the Montclair Redevelopment Agency. The Oversight Board holds regular meetings on the second Wednesday of every month at 6:00 p.m.

Oversight Board Agendas & Minutes

To view and listen to the Oversight Board agendas, minutes, and meetings audio, please click here.

For additional information, please contact Marilyn J. Staats, Deputy City Manager via email at mjstaats@cityofmontclair.org or by phone at (909) 625-9412.

Former Redevelopment Agency Overview

The Montclair Redevelopment Agency was formed on June 6, 1977, and was made up of members of the Montclair City Council who also serve as the Agency's Board of Directors. Provisions of State law enable the Agency to undertake community projects designed to improve certain areas within the City which have suffered economic decline, deterioration of improvements, or which have been unable to attract and promote new private investments to enhance the quality of life in the area.

The Agency was responsible for setting the course of redevelopment in the City of Montclair and for being sure that redevelopment plans are in the best interests of the Community. In directing the City Redevelopment activities, State law provided the Agency with broad governmental functions and authority to accomplish its purpose, including but not limited to: the right to issue bonds for authorized purposes and to expend their proceeds, and the right to acquire, sell, rehabilitate, develop, administer or lease property. The Agency could also demolish buildings, clear land, and cause construction of improvements including streets and sidewalks.

Montclair's past redevelopment funded activities and projects included the following:

  • Rejuvenate and upgrade areas of blight or neglect
  • Stimulate private investment
  • Strengthen the City's financial base including sales and property taxes
  • Improve and/or construct public infrastructure
  • Create and secure local jobs

The Agency was actively involved in many projects and programs that are now terminated due to the elimination of the Redevelopment Agency.  A few of these included:

  • Affordable Housing Programs
  • Commercial Rehabilitation Programs
  • Capital Improvement Projects

Under Montclair's Redevelopment Agency, the five redevelopment project areas and its most recently adopted project area entitled "Mission Boulevard Joint Redevelopment Project Area" have been disbanded.