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Saturday, Apr 02 2011 12:00 PM

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.

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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

Construction of the townhouses off Baker Street between Lake and Kentucky streets is well under way. There are also going to be some retail stores in the front on Baker Street.

Traffic flows along Baker Street as construction continues on the townhouses and retail stores Tuesday morning.

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.

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