Redevelopment:

 Our Best Local Economic Development Tool

  We often get questions about redevelopment; what is

  it and what does it mean?  Colleagues in other

  redevelopment agencies throughout the State of

  California often get the same questions. 

Redevelopment is the most effective economic development tool we have in California.    Yet with all of its’ successes through 397 agencies statewide; why isn’t it understood better and why does the state legislature continually look to raid redevelopment funds to help balance their budget problems? Part of the answer is that we have not done a good enough job, state-wide, of explaining it to the citizenry and touting the economic benefits it provides.

In Big Bear Lake, the City Council serves as the Improvement Agency (“IA”) Board and sets policy.  All of the legal requirements for establishing and administering a redevelopment agency are contained within the Community Redevelopment Law (State Health and Safety Code).  Its’ primary obligations are to leverage and reinvest the property tax revenue it receives from properties located within the boundaries of the project areas, for specific economic development purposes that create jobs and facilitate new private sector investment in those project areas that have been suffering from economic decline.  The premise is that, “but for” the redevelopment agency involvement, new private sector investment in these distressed areas would not have occurred.  How does it do that?  Revitalization in economically distressed areas does not typically happen on its own.  Often, the private sector is reluctant to reinvest because the risks and costs associated with doing so outweigh the expected return on investment. 

Redevelopment serves as a catalyst for private investment by providing the initial plan, seed money and/or financial contributions that remove financial barriers and ultimately attracts private capital and breathes new life into the redevelopment improvement areas.  Typical redevelopment contributions include gap funding for building and upgrading roads, installing and upgrading utility systems, parks, community facilities, and commercial beautification.  

Redevelopment agencies also provide affordable housing for low- and moderate-income residents, assist existing local small businesses and provide incentives to attract new businesses to a community. To support the redevelopment efforts, redevelopment agencies are allocated a portion of the existing property taxes to leverage and reinvest in those areas. Redevelopment does not increase taxes!  It is merely a way in which a higher percentage of the existing tax base is kept locally and reinvested in the local economy.  That reinvestment in turn, increases overall economic activity and generates additional local revenues for use to improve local government services. 

Please visit the IA webpage on this site to learn about the small business programs currently available and the critically important Village Specific Plan Update planning effort now underway.  The bottom line is; redevelopment is our best opportunity and tool to make real economic development improvements for Big Bear Lake and the Big Bear Valley.

Jeff Mathieu
City Manager
(909) 866-5832
bblcm@citybigbearlake.com