California cities that saw economic development projects sidelined or shelved when the state dissolved their redevelopment authorities would compete more easily for federal grants to fund those projects, under a new bill from Rep. Eric Swalwell.
Swalwell, D-Pleasanton, held a news conference Tuesday morning at a huge empty lot along Post Street in Fremont’s Centerville area. A sprawling mixed-use “Artist Walk” development had been planned for the site, but tanked after state lawmakers and the governor did away with local redevelopment authorities in 2011 and seized their assets to help balance the state’s budget.
“There’s a reason we only see buildings in artists’ renderings and not in reality,” Swalwell said. “Localities can no longer raise adequate funds for redevelopment…. And it is my hope today that the federal government can fix it.”
Swalwell’s H.R. 3518, the “Restarting Local Economies Act of 2013,” doesn’t allocate any new federal funding. Rather, it changes rules for the Economic Development Administration’s Economic Adjustment Assistance program, which provides competitive grants for local redevelopment projects if they meet specific criteria related to challenges to their economy.
Swalwell’s bill would include the closure of a government entity – such as a redevelopment agency – as a specific example of an economic challenge to a region, letting California localities more easily compete for these grants.
“I hope we can do our part to make things a little bit easier,” he said, noting projects like the Artist Walk development would create jobs not only in construction but also in the businesses that could locate there.
But for now, it’s “welcome to Centerville, welcome to an empty lot,” quipped Fremont Mayor Bill Harrison. “We need to get people to work, we need affordable housing.”
Harrison said Fremont in the past used redevelopment authority funding to do grade improvement projects that cleared the way for BART’s extension into Santa Clara County, and to improve the Niles Town Plaza around that district’s historic train station.
Because this bill would have special meaning for California, it’s unclear how it’ll play with the rest of the Republican-controlled House. Swalwell said he hasn’t yet begun lining up co-sponsors even amid California’s delegation.
“I’ve got my work cut out for me,” he said. “But whether you’re a Republican or a Democrat in California, you represent cities that suffered with the loss of their redevelopment authorities. This is going to be my year-end push, to reach out to colleagues on this issue.”