GROVER BEACH IMPROVEMENT AGENCY
FAQs (Frequently Asked Questions)

A: Redevelopment, under the California Community Redevelopment Law (CCRL; California Health and Safety Code Section 33000, et. seq.), is one of the few remaining tools available in which a city can retain funds to help reverse the deteriorating and/or inadequate conditions of its streets, parking and other public facilities, housing, and infrastructure, as well as helping to promote and facilitate economic development and General Plan implementation.

Redevelopment has been one of California's most effective economic development tools used to breathe new life into areas which are negatively impacted by a number of physical, environmental, and economic conditions that inhibit new investment by private enterprise.

Q: WHAT IS THE IMPROVEMENT AGENCY?

A:The Grover Beach Improvement Agency (the "Agency") is composed of the City Council members elected by Grover Beach citizens. However, the Agency is a separate public body, corporate and politic, from the City of Grover Beach. The Agency is activated by the CCRL's enabling legislation.

Q: HAS GROVER BEACH ESTABLISHED A IMPROVEMENT PROJECT AREA BEFORE?

A: Yes. In February, 1997, by Ordinance No. 97-1, the City Council adopted the improvement plan for the Improvement Project (subsequently amended 3 times to add territory). On July 1, 2002, the City Council adopted a new redevelopment survey area, from which the Planning Commission and Redevelopment Agency will designate a new proposed Improvement Project Area.

Q: WHAT IS A REDEVELOPMENT PLAN?

A: In legal terms a redevelopment plan describes the purposes, goals, and objectives which will help to eliminate existing deteriorating and/or inadequate physical and economic conditions from within a project area. A plan is formulated and an implementation program is selected to achieve the goals and objectives for the local redevelopment program.

Q: WHAT DOES IT MEAN TO LIVE OR OWN A BUSINESS IN A PROJECT AREA?

A: If you live or own a business in a redevelopment project area, you will have an opportunity to participate actively in improving the quality of life in your neighborhood. A community redevelopment program will usually include provisions for the substantial reuse and rehabilitation of existing facilities as well as long-term revitalization of whole existing neighborhoods.

Q: HOW WILL THE GROVER BEACH IMPROVEMENT AGENCY PAY FOR ITS ACTIVITIES?

A: The redevelopment process provides for a change in the distribution of property tax revenues collected on property within a redevelopment project area. An agency will retain a portion of the tax dollars paid as a result of the increase in property values caused by improvements, reassessments, inflation or property sales. A chart illustrating the "tax increment" created by project area land improvements and/or transactions is presented in the following exhibit:

Under current law, existing taxing agencies will continue to receive a percentage of property tax dollars they currently collect, plus a percentage of any increase.

Q: WHAT VALUE IS REDEVELOPMENT TO PROPERTY OWNERS?

A: Redevelopment can eliminate deteriorating conditions and facilitate construction of needed public improvements and the other projects and programs without additional cost to the property owner.

When redevelopment activities are completed, the property values within, as well as around a project area, should increase at a faster rate than if the properties were not in a redevelopment project area.

Q: HOW LONG WILL THE PROPERTY BE IN REDEVELOPMENT?

A: The effective life of a new or amended redevelopment plan (amended to add territory) is 30 years from the date of its adoption by the City Council. Other time and fiscal limits are also mandated by the CCRL.

Q: WILL REDEVELOPMENT NEGATIVELY AFFECT RENTERS?

A: No. Rents should not be affected because property taxes will not increase due directly to redevelopment. In fact, for qualifying residents, rents could conceivably be lowered as a result of redevelopment programs designed to increase, improve and preserve the community's supply of affordable housing.

Q: WILL REDEVELOPMENT INCREASE MY TAXES?

A: No. In accordance with Article XIII of the State of California Constitution, taxes will only increase if there is a change in ownership or if there is new construction on the property. The higher taxes resulting from the sale of property will reflect a rise in property values,not an increase in tax rates.

Q: DOES REDEVELOPMENT OVERRIDE THE PROPOSITION 13 INITIATIVE?

A: No. The Agency does not have the power to levy taxes. As noted above, the only tax increase is caused by property improvements or sales. Your individual property taxes or the tax rates will not be affected! The Agency receives its revenues by a redistribution ofexisting property taxes, as previously described.

Q: WILL REDEVELOPMENT RAISE TAX RATES?

A: No. The Agency does not set tax rates. Tax rates of taxing agencies such as the schools, County of San Luis Obispo, the City and other special districts can only be raised by a vote of the people.

Q: HOW ABOUT PROPERTY ACQUISITION?

A: The Agency may propose to instate this authority as an action of the proposed plan. The Agency may enact certain eminent domain authority to affect areas in the proposed Project Area by the proposed plan. However, eminent domain determinations have not yet been made.