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National City Could Lose $40 Million In Taxes

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Aired 1/12/11

National City stands to lose $40 million in tax revenue if redevelopment agencies are phased out in California. Governor Jerry Brown’s budget proposed eliminating the economic development agencies. He would redirect the tax money into core government services.

— National City stands to lose $40 million in tax revenue if redevelopment agencies are phased out in Calif.

Gov. Jerry Brown’s budget proposed eliminating the economic development agencies. Brown would redirect the tax money into core government services.

National City Mayor Ron Morrison says it's a bad idea.

National City Mayor Ron Morrison

Above: National City Mayor Ron Morrison

“To take it away and take away our future so they can plug a budget at this moment is extremely short-sighted,” Morrison said.

Two-thirds of National City is considered blighted. By the state’s definition, blighted can mean a lot of things, such as empty buildings, a high crime rate or too many x-rated shops.

Once an area is designated blighted, the city’s redevelopment agency works to improve buildings and attract new business. And it collects new taxes from the improvements.

In National City, that’s anywhere between $40 million and $50 million a year -- more than the city’s entire operating budget.

“Currently this money is being used to invigorate the economy, to create jobs,” Morrison said.

National City is redeveloping its bay front using seed money from its redevelopment agency.

Other San Diego cities also stand to lose under the proposal. The entire city of Coronado that is not under federal or state jurisdiction is considered blighted and under the control of a redevelopment agency.

Comments

Avatar for user 'rachel'

rachel | January 12, 2011 at 12:35 p.m. ― 3 years, 8 months ago

"The entire city of Coronado that is not under federal or state jurisdiction is considered blighted and under the control of a redevelopment agency." How long has this been the case - and how much redevelopment money has the "blighted" city of Coronado bilked from the taxpayers?

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