Bill Text: CA SB470 | 2013-2014 | Regular Session | Chaptered
Bill Title: Community development: economic opportunity.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Passed) 2013-10-08 - Chaptered by Secretary of State. Chapter 659, Statutes of 2013. [SB470 Detail]
Download: California-2013-SB470-Chaptered.html
BILL NUMBER: SB 470 CHAPTERED
BILL TEXT
CHAPTER 659
FILED WITH SECRETARY OF STATE OCTOBER 8, 2013
APPROVED BY GOVERNOR OCTOBER 8, 2013
PASSED THE SENATE SEPTEMBER 12, 2013
PASSED THE ASSEMBLY SEPTEMBER 11, 2013
AMENDED IN ASSEMBLY SEPTEMBER 6, 2013
AMENDED IN ASSEMBLY SEPTEMBER 3, 2013
AMENDED IN ASSEMBLY AUGUST 21, 2013
AMENDED IN ASSEMBLY AUGUST 5, 2013
AMENDED IN SENATE MAY 8, 2013
AMENDED IN SENATE APRIL 9, 2013
AMENDED IN SENATE APRIL 1, 2013
INTRODUCED BY Senator Wright
(Coauthor: Assembly Member Lowenthal)
FEBRUARY 21, 2013
An act to add Part 4 (commencing with Section 52200) to Division 1
of Title 5 of the Government Code, relating to community
development.
LEGISLATIVE COUNSEL'S DIGEST
SB 470, Wright. Community development: economic opportunity.
Existing law generally regulates the power of cities, counties,
and cities and counties.
This bill would state the intent of the Legislature to promote
economic development on a local level so that communities can enact
local strategies to increase jobs, create economic opportunity, and
generate tax revenue for all levels of government. The bill would
define economic opportunity to include certain types of agreements,
purposes, and projects, and declare that it is the policy of the
state to protect and promote the sound development of economic
opportunity in cities and counties, and the general welfare of the
inhabitants of those communities through the employment of all
appropriate means.
The bill would state that the creation of economic opportunity and
the provisions for appropriate continuing land use and construction
policies with respect to property acquired, in whole or in part, for
economic opportunity constitute public uses and purposes for which
public money may be advanced or expended and private property
acquired. The bill would provide that before certain returned city,
county, or city and county property is sold or leased for
development, the sale or lease shall first be approved by the
legislative body, as specified. The bill would authorize a city,
county, or city and county to establish a program under which it
loans funds to owners or tenants for the purpose of rehabilitating
commercial buildings or structures and to assist with the financing
of facilities or capital equipment as part of an agreement that
provides for the development or rehabilitation of property that will
be used for industrial or manufacturing purposes, as specified.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Part 4 (commencing with Section 52200) is added to
Division 1 of Title 5 of the Government Code, to read:
PART 4. Economic Opportunity
CHAPTER 1. GENERAL PROVISIONS
52200. It is the intent of the Legislature to do all of the
following:
(a) Promote economic development on a local level so that
communities can enact local strategies to increase jobs, create
economic opportunity, and generate tax revenue for all levels of
government.
(b) Give local governments tools, at no cost to the state, that
allow local governments to use their funds in a manner that promotes
economic opportunity.
(c) With the loss of redevelopment funds, cities, counties, and
cities and counties need to continue certain powers afforded to
redevelopment agencies that were critical to economic development,
yet do not have an impact on schools and the state budget.
52200.2. As used in this part "economic opportunity" means any of
the following:
(a) Development agreements or other agreements that create,
retain, or expand new jobs, in which the legislative body finds that
the agreement will create or retain at least one full-time
equivalent, permanent job for every thirty-five thousand dollars
($35,000) of city, county, or city and county investment in the
project after full capacity and implementation.
(b) Development agreements that increase property tax revenues to
all property tax collecting entities, in which the legislative body
finds that the agreement will result in an increase of at least 15
percent of total property tax resulting from the project at full
implementation when compared to the year prior to the property being
acquired by the government entity.
(c) Creation of affordable housing, if a demonstrated affordable
housing need exists in the community, as defined in the approved
housing element or regional housing needs assessment.
(d) Projects that meet the goals set forth in Chapter 728 of the
Statutes of 2008 and have been included in an adopted sustainable
communities strategy or alternative planning strategy or a project
that specifically implements the goals of those adopted plans.
(e) Transit priority projects, as defined in Section 21155 of the
Public Resources Code.
52200.4. It is declared to be the policy of the state:
(a) To protect and promote the sound development of economic
opportunity in cities and counties and the general welfare of the
inhabitants of those communities through the employment of all
appropriate means.
(b) That whenever the creation of economic opportunity in cities
and counties cannot be accomplished by private enterprise alone,
without public participation and assistance in the acquisition of
land, in planning and in the financing of land assembly, in the work
of clearance, and in the making of improvements necessary therefor,
it is in the public interest to advance or expend public funds for
these purposes, and to provide a means by which economic opportunity
can be created.
(c) That the creation of economic opportunity and the provisions
for appropriate continuing land use and construction policies with
respect to property acquired, in whole or in part, for economic
opportunity constitute public uses and purposes for which public
money may be advanced or expended and private property acquired, and
are governmental functions of state concern in the interest of
health, safety, and welfare of the people of the state and cities and
counties.
(d) That the necessity in the public interest for the provisions
of this part is declared to be a matter of legislative determination.
52200.6. This chapter shall not be interpreted to authorize the
use of eminent domain for economic development purposes.
CHAPTER 2. SALES AND LEASES
52201. (a) (1) Before any city, county, or city and county
property that is returned to the city, county, or city and county per
the long-range property management plan, pursuant to Section 34191.5
of the Health and Safety Code, is sold or leased for economic
development purposes, the sale or lease shall first be approved by
the legislative body by resolution after public hearing. Notice of
the time and place of the hearing shall be published in a newspaper
of general circulation in the community at least once per week for at
least two successive weeks, as specified in Section 6066, prior to
the hearing.
(2) The city, county, or city and county shall make available, for
public inspection and copying at a cost not to exceed the cost of
duplication, a report no later than the time of publication of the
first notice of the hearing mandated by this section. This report
shall contain both of the following:
(A) A copy of the proposed sale or lease.
(B) A summary that describes and specifies all of the following:
(i) The cost of the agreement to the city, county, or city and
county, including land acquisition costs, clearance costs, relocation
costs, the costs of any improvements to be provided by the city,
county, or city and county, plus the expected interest on any loans
or bonds to finance the agreements.
(ii) The estimated value of the interest to be conveyed or leased,
determined at the highest and best uses permitted under the general
plan or zoning.
(iii) The estimated value of the interest to be conveyed or
leased, determined at the use and with the conditions, covenants, and
development costs required by the sale or lease. The purchase price
or present value of the lease payments which the lessor will be
required to make during the term of the lease. If the sale price or
total rental amount is less than the fair market value of the
interest to be conveyed or leased, determined at the highest and best
use, then the city, county, or city and county shall provide as part
of the summary an explanation of the reasons for the difference.
(iv) An explanation of why the sale or lease of the property will
assist in the creation of economic opportunity, with reference to all
supporting facts and materials relied upon in making this
explanation.
(b) The resolution approving the lease or sale shall be adopted by
a majority vote unless the legislative body has provided by
ordinance for a two-thirds vote for that purpose and shall contain a
finding that the sale or lease of the property will assist in the
creation of economic opportunity. The resolution shall also contain
one of the following findings:
(1) The consideration is not less than the fair market value at
its highest and best use.
(2) The consideration is not less than the fair reuse value at the
use and with the covenants and conditions and development costs
authorized by the sale or lease.
(c) The provisions of this section are an alternative to any other
authority granted by law to cities to dispose of city-owned
property.
52202. A city, county, or city and county may establish a program
under which it loans funds to owners or tenants for the purpose of
rehabilitating commercial buildings or structures.
52203. (a) As part of an agreement that provides for the
development or rehabilitation of property that will be used for
industrial or manufacturing purposes, a city, county, or city and
county may assist with the financing of facilities or capital
equipment, including, but not necessarily limited to, pollution
control devices.
(b) Prior to entering into an agreement for a development that
will be assisted pursuant to this section, a city, county, or city
and county shall find, after a public hearing, that the assistance is
necessary for the economic feasibility of the development and that
the assistance cannot be obtained on economically feasible terms in
the private market.
