Love it or loathe it, Bakersfield's redevelopment agency follows the rules
BY GRETCHEN WENNER, Californian staff writer gwenner@bakersfield.com
Bakersfield's redevelopment agency -- unlike some around California -- is coloring within the lines, documents show.
Scrutiny of the blight-eliminating agencies has intensified since Gov. Jerry Brown proposed abolishing them in January to help balance the state budget.
Related Info
HOUSING FUNDED
Affordable housing projects that have received some financial assistance from the Bakersfield Redevelopment Agency in the last 10 years or so. The agency is typically not the developer, but helps with land acquisition, infrastructure improvements, downpayment assistance and in other ways.
Completed:
California Avenue Senior Housing, 1015 O St.
180 units
Agency cost: $1 million
Santa Fe Apartments, 701 Union Ave.
56 units
Cost to agency: $300,000
Florence Gardens Senior Living Community, 6701 Auburn St.
74 units
Cost to agency: $310,000
Lowell Place Senior Housing, 500 R St.
79 units
Agency cost: $572,000
Madison Place Apartments, 1885 Madison St.
Rehabilitated about 50 units
Agency cost: $350,000
Park Place Senior Apartments, 2250 R St.
80 units
Cost to agency: $800,000
In progress:
Parkview Cottages, 21st and R streets
69 units
Agency cost: $2.9 million
Baker Street Village, Baker and Lake streets
37 units
Agency cost: $4.9 million
Creek View Villas, near California Avenue and R Street
37 units
Agency cost: $3 million
Cityplace apartments, 1401 S St.
70 units
Cost to agency: $1.45 million
Future projects with development agreements:
Mill Creek Courtyard apartment complex, 1303 S St.
57 units
Agency cost: $3.7 million
19th Street Senior Plaza apartments, 501 19th St.
67 units
Agency cost: $4.15 million
1612 City Lofts, at 19th and Eye streets
9 units
Cost to agency: $612,000
Sources: Bakersfield Redevelopment Agency, California Department of Housing and Community Development
BAKERSFIELD REDEVELOPMENT AGENCY
In Bakersfield, the redevelopment agency consists of seven members nominated by the mayor and approved by the city council to staggered four-year terms. Members get a $25 stipend each meeting -- usually once a month -- and are reimbursed for necessary travel.
Agency members are Chairman Larry Koman, Philip Bentley, James Knapp, Danny Ordiz, Larry Pickett and Frederick Prince. There is one vacancy.
By the numbers
3
Project areas: Downtown, first established in 1972, and Southeast and Old Town Kern, both established in 1999.
6,815
Total acreage in the city's three project areas.
$1.9 million
Share of property taxes slated for the redevelopment agency in the 2000-2001 fiscal year.
$8 million
Share of property taxes in the 2009-2010 fiscal year.
$49.5 million
Total property taxes routed to the agency in the last 10 fiscal years.
$13.8 million
Portion of the last 10 years' share of redevelopment taxes set aside for affordable housing projects.
Sources: City of Bakersfield, California Department of Housing and Community Development
Related Photos
Symbols of excess -- a Sacramento bar with a swimming mermaid, for example, or the city of Palm Desert's plan to spend $16.7 million to spruce up a luxury golf course -- have made headlines. A largely critical report released last month by State Controller John Chiang's office, which looked closely at 18 of California's 400 or so redevelopment agencies, prompted Chiang to say in a statement: "The lack of accountability and transparency is a breeding ground for waste, abuse and impropriety."
Even before Brown's proposal and the state controller's report, the Los Angeles Times in October published a wide-ranging investigation of California's redevelopment agencies and found widespread examples of corruption, questionable spending and instances where laws requiring construction of affordable housing were ignored.
But in Bakersfield -- whether or not you like redevelopment -- the local agency is basically playing by what rules there are:
* Over the past 10 fiscal years, the Bakersfield Redevelopment Agency has shuttled nearly 28 percent of its property tax revenues, or more than $13.8 million, into a fund for affordable housing -- well above the 20 percent required by state law, regulatory filings show.
* Nearly 880 units of affordable housing in the past decade have been constructed or are now being developed after receiving agency assistance. Affordable housing funds and construction provide one of the few tangible performance measures for the agency.
* In the prior and current fiscal years, the agency sent checks to the state totaling more than $3.3 million -- the full amount required for schools by state budget legislation. Statewide, about $40 million of such payments weren't made, Chiang's report found.
* A current five-year implementation plan exists for each of Bakersfield's three project areas.
* The agency annually shares a required portion of its property tax revenues with the county, school districts and other local districts in Kern County.
* Annual financial reports and other data have been regularly filed with various state agencies and the city of Bakersfield.
"We're doing all the required reporting in Bakersfield," said Donna Kunz, who, as head of the city's Economic and Community Development Department, presides over day-to-day redevelopment efforts.
The agencies use a portion of property tax dollars in specified areas to partner with private developers to, theoretically at least, eliminate blight.
The governor wants to kill off the agencies because they have grown so large over the last few decades that they now divert about 12 percent of property taxes statewide. Brown wants those funds to pay for core local services such as schools, police and firefighters.
Questions briefly were raised in February when, like its counterparts across the state, the Bakersfield Redevelopment Agency allocated ahead of schedule millions of dollars to projects before the state could swoop in and take the cash.
The agency board unanimously approved most of the contracts and agreements. But board member James Knapp voted against funding some improvement projects at the Rabobank Arena and Convention Center, saying they seemed to be operational costs that should be covered by other municipal budgets.
City Manager Alan Tandy said the arena allocations were appropriate.
Some Californian bloggers also were none too pleased that taxpayer money was being spent on a water wheel for Mill Creek Linear Park in such tight times.
Since budget talks collapsed, it's not clear what the fate of the redevelopment issue is. The proposal fell just one vote short during budget sessions held before the stalemate.
Ken Mettler, the immediate past president of the conservative California Republican Assembly, said the CRA has been trying to drum up that final GOP vote since last month's California Republican Party convention in Sacramento.
Mettler, a longtime redevelopment foe who ran unsuccessfully last year for the 32nd Assembly District seat now held by Republican Shannon Grove, said there is an assemblyman in Southern California who may yet budge, but didn't want to name him.
He is puzzled at how redevelopment has mustered so much GOP support.
"How can the Republican Party have credibility for limited government when they have an opportunity here to eliminate an abuse that is consuming 12 percent of our property taxes in the state?" Mettler wondered.
Redevelopment is crafted to satisfy both ends of the political spectrum, he said, with 80 percent of the money going to "crony capitalism" projects and the other 20 percent specified for affordable housing, "which placates the liberals and the media."
Mettler acknowledged Bakersfield hasn't seen redevelopment abuses like those in some cities, but said that's because observers here keep an eye on things.
Kunz said in the current environment, the agency is in survival mode.
Some of the agency's big projects include what's now the Rabobank Arena and Mill Creek Linear Park. Redevelopment funds have assisted a wide range of projects including a southeast fire station, the FoodMaxx grocery store on Union Avenue and Maya Cinemas.
On the housing side, Kunz's office had a goal to finish 1,000 units of affordable housing in 10 years. They'll still get close, though everything has slowed down after the housing bubble burst.
"If the governor has his way, affordable housing is going out the door," she said.
Most CommentedMost Popular
Since Karen Goh returned to Kern County from a publishing career in New York in 2004, she has helped foster a strong network of Christian leaders in government, politics, media, business and nonprofits.
California voters approved Proposition 215 in 1996, giving "seriously ill Californians ... the right to obtain and use marijuana for medical purposes" as recommended by a physician.
Is Kern County, as has widely been reported, really the expulsion capital of California? That's the question posed Friday by state Sen. Michael Rubio, D-Shafter, to 50 or so Kern County educators, elementary and high school district administrators and community leaders.
A settlement has been reached in radio talk show host Inga Barks' sexual harassment lawsuit against former co-host Scott Cox and American General Media.
Since Karen Goh returned to Kern County from a publishing career in New York in 2004, she has helped foster a strong network of Christian leaders in government, politics, media, business and nonprofits.
Kern County has agreed to pay a Kern River Valley family $1 million for wrongfully taking their son in 2008 when the family was in a dispute with the South Fork Union School District over how school officials were dealing with the boy's food allergies.
Young's Marketplace, an independent grocery store that's a Bakersfield institution, will close at the end of the week.
Bakersfield’s Faast Pharmacy is going out of business and will be acquired by the big chain CVS, it was confirmed Monday.