Headline Story

2016 Budget Holds Steady Course -- More Money for Cap-And-Trade Programs

With the state no longer in the dire financial circumstances that it endured several years ago, this year’s budget process was, by some measures, less tense than it has been in years past. Presented in January, revised in May, and approved June 15, the budget totals approximately $123 billion, including about $5 billion from reserve funds. The details are being negotiated in a series of trailer bills that are pending.

Money from the state cap-and-trade program is expected to reach $2.5 billion, with $400 million allocated to the Affordable Housing and Sustainable Communities program. 

“For the most part, the budget was really good to local agencies,” said Dan Carrigg, Sr. Director Legislative Affairs for the League of California Cities. “We don’t have these wild budget deficits. Just having stability at the state level...even if local governments don’t get a dime, that’s positive. When the state is unstable, it just ripples out negatively to others."

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Trailer Bill Could Cost Cities $800 Million in Redevelopment-Related Funds

Just when cities thought it was safe to sign on to notices of completion and put their long redevelopment nightmares behind them, a newly proposed bill yet again has put cities at odds with the state.  

In the four years since Gov. Jerry Brown ordered the dissolution of the state’s nearly 400 redevelopment agencies, a series of laws and court cases  –principally revolving around the 2012 law AB 1484 has resulted in a complex but, for the most part, manageable system by which cities dispose of properties and settle their accounts with the state Department of Finance (DOF). This has meant that DOF takes possession of properties and funds formerly held by redevelopment agencies while DOF reimburses cities for debts owed to them by their former redevelopment agencies and/or pays cities for certain expenses incurred in the dissolution process.  

DOF and cities must agree to Findings of Completion before properties may be disposed of and cities receive their reimbursements. To avoid endless bickering over who is owed what, FOC's provide cities and DOF incentive to arrive at negotiated agreements so that cities can receive their rightful reimbursements in a timely manner.  

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CP&DR News Briefs, August 3, 2015: New Salton Sea Plan; Sucker Fish Habitat at Issue; Developers Protest Oakland Art Fee; and More

Officials with the Imperial Irrigation District have proposed a smaller plan for restoration of the Salton Sea, reducing the cost from $9 billion to $3.15 billion.

CP&DR News Briefs, July 27, 2015: L.A. Developments Near Faults to Face Scrutiny; Grand Jury Examines Irvine Great Park; Calif. Streets in Poor Shape; and more

Developers in Los Angeles will face more extensive scrutiny if they decide to build near earthquake faults under new rules in Los Angeles. The Westside, the South Bay, and northeast Los Angeles will be the three main areas covered by new scrutiny under a program advanced by Mayor Eric Garcetti.

Insight: Does Supply Create Its Own Demand?

A couple of weeks ago, the satirical newspaper The Onion reported that the City of San Francisco was looking to relocate because its current location had become too expensive. Funny though this was, I expected the follow-up story to focus on the economic development incentive package being put together to keep San Francisco where it is. 

A week or so later, Gabriel Metcalfe – head of the respected San Francisco urban planning organization SPUR – published a provocative piece in CityLab blaming the city’s affordability crisis on progressive politics – especially progressive politics of the no-growth kind. Progressive San Francisco, he argued, “had a fatal, Shakespearean flaw that would prove to be its undoing: It decided early on to be against new buildings. It decided that new development, with the exception of publicly subsidized affordable housing, was not welcome.”

All up and down California – especially in the expensive coastal enclaves around San Francisco and Los Angeles – community activists have been lately decrying how the rising cost of housing is making it impossible for normal people with normal incomes to live in these towns. Yet, as Metcalf points out, most of the time these same community activists are arguing that the trend toward high housing cost must be countered with... less housing construction. Or at least less market-rate housing construction. 

Removal of Conservation Overlay Not Exempt from CEQA, Court Rules

A decision to remove 200 acres of the Anheuser-Busch-owned Warm Springs Ranch from the Western Riverside County Multiple Species Habitat Plan is not exempt from the California Environmental Quality Act even though the property would be replaced in the plan by 1,000 acres on two other nearby ranches, the Fourth District Court of Appeal has ruled. 

The decision to remove the property was the result of a complicated – and in some ways failed -- negotiation between the company, the Western Riverside County Regional Conservation Authority, and Riverside County. Overturning Riverside County Superior Court Judge Daniel Ottolia, the Fourth District ruled that CEQA Exemptions 7 and 8 did not apply to the situation, even though the change would not automatically lead to development of the parcel. 

“[W]e conclude the removal of the conservation overlay from the phase 9 property is a ‘project’ under CEQA as a change embodied a fundamental land use decision that has the potential for causing ultimate physical changes in the environment, because land that was protected for conservation purposes will no longer be subject to such protections,” the court wrote.

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CP&DR News Briefs, July 22, 2015: Brown Pushes Delta Water Tunnels; Army Corps Approves L.A. River Plan; New National Monument; and More

The state Department of Water Resources sharpened plans for the construction of two 30-mile-long tunnels on the Sacramento River, releasing hundreds of pages of documents in its environmental impact statement detailing the project’s changes from the original 2006 plan worth $15 billion.

SCG Gears Up to Give $400 Million in Grants

LOS ANGELES — The Strategic Growth Council and partner agencies went from 0 to $120 million in the span of a few short months this year. Spurred by the passage of a budget bill last year, guidelines for the new Affordable Housing and Sustainable Communities grant program came out in January, initial applications were accepted March, and just last month 28 grant awardees were announced. 

Q&A: Manuel Pastor, Champion of Environmental Justice and SGC Public Member

Formed with the passage of SB 732 in 2007, the Strategic Growth Council, a cross-sector body consisting of department heads and secretaries across state government (plus full-time staff), acts as a coordinating organization to consider the development of California’s built environment and protection of the state’s environment. Most recently, the SGC has focused on awarding roughly $200 million in planning grants through the Affordable Housing and Sustainable Communities program.

CP&DR News Briefs, July 13, 18, 2015: Bill Would Halt High Speed Rail; Kern Co. Releases EIR on 2.8M Acres; S.F. Housing Treads Water

In response to escalating cost estimates for construction of California's high speed rail, two state senators have drafted a bipartisan bill to stop construction of the rail until a public revote can be taken on June 6, 2016.

CP&DR News Briefs, July 6, 18, 2015: $224 Million in Transit Grants; State Carbon Emissions Drop; Alameda Base Redevelopment

The California State Transportation Agency announced (pdf) recipients of $224 million in grant money to support public transportation projects that reduce greenhouse gas emissions.

SGC Confirms Recipients of $122 Million in Grants

Following the recommendations of its staff, the Strategic Growth Council formally approved $122 million in grants for 28 projects designed to provide affordable housing and reduce carbon emissions throughout the state.

Santa Monica Backs Off Density, Centers in LUCE

In 2010, the City of Santa Monica adopted a Land Use and Circulation Element to its General Plan that was hailed as a model of progressive planning. The LUCE foretold a denser but, possibly, less trafficked and more pleasant city and was one of the first such elements to achieve the goals of SB 375. Cities across the state looked to the LUCE as a model. It won "Outstanding Comprehensive Planning Award, Small Jurisdiction" from the California Chapter of the American Planning Association http://www.cp-dr.com/node/2773.

The LUCE was designed to generate zero net new car trips in the city by 2025 and to reduce the city’s annual greenhouse gas emissions by nearly 200,000 metric tons compared to 2010 levels. It also provided a bookend to the 1984 General Plan update. Back then, the city sought to increase its employment base but did not promote housing accordingly. 

Five years later, Santa Monica has plenty of jobs – 74,000 in a city of 92,000, with pressures increased with the recent rise of “Silicon Beach tech firms – but has taken a step back from the LUCE, eliminating a density bonus “tier” and four of five “activity centers” identified in the LUCE. And if a slow-growth group gets its way, a full repudiation of the goals of 2010 may be in the offing. The situation sets a politically sensitive table for the new city manager, urban planning legend Rick Cole, who started work on June 29. 

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Ninth Circuit Blows Hole in Habitat Conservation Plans

Punching a hole in the faith local governments and developers in California have placed in habitat conservation plans, the Ninth U.S. Circuit Court of Appeals has ruled that federal wildlife agencies retain the discretion to designate additional land as critical habitat even after an HCP has been approved.

The case is important because local governments and developers in California have relied heavily on the HCPs adopted in the 1990s for certainly in planning future development. The Ninth Circuit ruling reinforces the idea that the HCPs are not iron-clad and wildlife agencies can put protect additional land at their discretion, thus diminishing the certainty HCPs are designed to create. Adopted in 1999, the Western Riverside plan was one of the largest and most comprehensive HCPs.

Ruling in a case involving the Santa Ana sucker, a small fish that lives in the Santa Ana River, the Ninth Circuit upheld the U.S. Fish & Wildlife Service’s 2010 decision to add some 1,400 acres (and possibly another 5,000 acres) to the fish’s critical habitat pursuant to the federal Endangered Species Act. The court rejected the claim from a variety of local government agencies that the habitat designation was “arbitrary” because the wildlife agency should have waited for implementation of the Western Riverside County Multiple Species Habitat Conservation Plan before designating additional habitat.

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CP&DR News Briefs June 29, 2015: 710 Tunnel Gains Support; Tribes Sue over Solar; L.A. Pursues Manufacturers; and More

Plans to build a $5 billion, 6.3-mile tunnel to close the "gap" of the 710 freeway are gaining headway as both the San Gabriel Valley Council of Governments recommended that project as the best option. The tunnel, which would have two lanes in either direction and would be completely underground for 4.2 miles.

CP&DR News Briefs, June 22, 2015: NEPA Suit Filed over Fracking; Chargers Slipping Away from S.D.; Santa Ana ‘Welness District,’ and More

Two environmental groups have sued the U.S. Bureau of Land Management and the Secretary of the Interior for opening up 400,000 acres of public land in Southern California for fracking, which they claim violates the National Environmental Policy Act.

Was Supreme Court's Ruling on Sign Ordinance Over-Broad?

Cities' ability to control their streets' aesthetics may be affected by a June 18 U.S. Supreme Court ruling on content-based regulation of signage, but perhaps not as drastically as they had feared. 

In Reed v. Town of Gilbert, a six-justice majority of the high court applied strict scrutiny to a local "sign code" that restricted "temporary directional signs" based on their content. However, as the American Planning Association noted, a partly overlapping group of six justices joined in more cautious concurrences that sought to moderate the effects of the main ruling. And even the majority opinion offered reassurance that "Our decision today will not prevent governments from enacting effective sign laws." 

The case concerned a church that held services at varying borrowed locations in the town of Gilbert, Arizona. The church would post signs early each Saturday pointing out the site of the next Sunday service. Town officials regulated these signs under a special legal category for "temporary directional signs" specific to events of religious or nonprofit groups. The category limited the size and frequency of such signs and allowed them to be posted for only 12 hours before each event and one hour after it. 

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