Redevelopment Agencies Shortchanged California Schools $40 Million, Used Funds For Golf Course

Los Angeles Times:

Redevelopment agencies in California illegally shortchanged schools by at least $40 million last year, forcing the state to make up the money, according to findings released Monday morning by State Controller John Chiang.
The review of redevelopment agencies comes as the Legislature is poised to vote on Gov. Jerrry Brown's proposal to eliminate municipal redevelopment agencies as part of his budget plan. One city, Palm Desert, spent public money meant for improving slums and blight on a luxury golf course.

Read the whole story: Los Angeles Times

Comments

[GoldwaterKid]

08:53 PM on 03/08/2011

Really am loving all this information our State Controller is releasing to the public.

Hopefully, our State Assembly is reading it.

[Mondieu]

04:40 PM on 03/08/2011

This is too funny. The GOP keeps bashing teachers that make a measly 40K per year while the RDA steals MILLIONS for a golf course that only rich people gets to play in. At the same time; there are trolls and *diots that actually cry out for the blood, sweat, and tears from teachers.

[above]

03:41 PM on 03/08/2011

This money paid for 30% of Jerry Brown's salary when he was mayor.

[Mondieu]

04:38 PM on 03/08/2011

Why do you keep lying? Who is paying you to come to this site to lie?

[studioh!]

02:14 PM on 03/08/2011

desert.(p)alms.

[Scott Zwartz]

01:35 PM on 03/08/2011

The CRA is a city-own construction company controlled by the City Council. The CRA has no hammer or nails of its won so it hires buddies of the city councilmembers who decided which developer get which deal. Sounds like a formula for corruption -- and it is.

The CRA lies about the fair market value of property when it buys from a friend of the city council. For example, the CRA appraisal showed that 1601 N Vine was worth $4, but the CRA said it was worth $5.45 M and paid the seller an extra $1.4 M. Then 4 years later, the City Council President proposed selling the property back to the same developer for only $825,000. In the intervening 4 years, the seller-developer-buyer did not have to pay one cent in interest on his mortgage as the City owned the property and he paid ZERO property tax for the same reason. That was other $1.6 M savings to the developer.

So the developer was overpaid by $1.4 M. saved another $1.6 million and then could buy back the property for a $3.2 M discount. That is a $6.2 Million profit to the developer -- that's taxpayers money.

Today is election day in LA, but Angelenos will re-elect the same councilmen like LaBonge and then complain that the city doesn't work right.

[Scott Zwartz]

01:20 PM on 03/08/2011

Let's be. This study covered only one year! In the last 10 years, over $1.5 Billion in property tax dollars have gone out of local budgets and into the CRA/LA That is the reason LA is broke, but HP never reports real news about the corruption in LA.

By its silence, HP supports the most reactionary, corrupt anti-union forces in LA. All that is need for evil to win is for good people to remain silent. One has to ask, however, how good are these HP people when they remain silent in face of massive multi-million dollar frauds that are destroying the nation's second largest city.

[sdiaz]

07:42 AM on 03/08/2011

typical.

[iridium53]

01:04 AM on 03/08/2011

So, then, are the individuals involved with those redevelopment agencies that redirected funds accountable for fraud or other crimes?

Or, do they just get to spend State money without accountability?

[Scott Zwartz]

01:48 PM on 03/08/2011

Yes, but it is not the State's money. It is local property tax dollars. All told, the CRA/LA has taken in at least $3 BILLION, $1.5 Billion in the last 8 to 10 years.

Last year alone when the City claimed it was broke, the CRA/LA took in $272 M in property taxes increasing its multi-million dollar developer slush fund, while cutting back fire services, reducing the size of Fire station 82 that serves the Hollywood Hills by 75%, closing libraries. At its current pace the CRA/LA will steal $1 Billion every 3 years and all its money goes to millionaire and billionaire developers.

Yet Angelenos continue to vote for Tom LaBonge. "Oh, he replaced a dead tree in my front yard." It ward Healer politics. You only get stuff if you know someone who knows LaBonge, but then you owe him! Is this 2011 or 1911?

[sibyl9]

11:49 PM on 03/07/2011

Redevelopment agencies stealing from the kids, eh?

[Mondieu]

04:41 PM on 03/08/2011

They would steal from you directly if they could.

[conservicide]

09:08 PM on 03/07/2011

We want the name and address of the person who is responsible for diverting the money to a golf course. We'll supply our own shovels and rakes.

[Scott Zwartz]

01:24 PM on 03/08/2011

Eric Garcetti, LA City Council Prez.

Billions for real estate speculators, closed parks and libraries for kids.

According to Councilman LaBonge, who is running TODAY for re-election today against challenger Steehen Box, parks for children are too expensive but it is OK to give $52 M to billionaire Eli Broad so that he can have a parking garage next to his downtown art museum.

If you are a millionaire or billionaire, you get all the free cash you want, but if you're a regular Angeleno, you get bupkis.

[conservicide]

02:37 PM on 03/08/2011

Thank you, the A Team has been notified and are suiting up.

[Its-All-Good]

04:10 PM on 03/07/2011

Here's how our city is helping schools and teachers stay on the job..

Santa Rosa City Hall’s ongoing effort to shield redevelopment tax revenue from the cash-strapped state enters the latest round Monday with three last-minute special meetings beginning at noon.

First the City Council will consider dedicating $2.9 million toward a Railroad Square mixed-use housing project and a new sewer line for B Street. In addition, it will consider transferring $1.9 million that had been set aside for use in the southwest part of the city and use it instead to pay an Exchange Bank loan.

Immediately following that meeting, the council and the development agency will hold a joint meeting to discuss how to protect the city’s $5.5 million loan to the redevelopment agency.

Finally, a third meeting will involve a plan to transfer four parcels of land owned by the redevelopment agency to the city Housing Authority.

[econ1]

03:14 PM on 03/07/2011

While the federal government continues to try to hand out money with abandon, the states are starting to reign it in. This is a good start.

[antaeus]

02:34 PM on 03/07/2011

Lousy teacher unions.

[Mondieu]

04:42 PM on 03/08/2011

You're kidding right?

[antaeus]

12:11 PM on 03/09/2011

Aren't teachers unions to blame for every ill under the sun?

[mountainweb]

02:05 PM on 03/07/2011

Clearly, getting rid of the municipal redevelopment agencies, and the corruption associated with them, has to be close to the top of the list of cutting the trash out of the state budget....