|
 |
 |
|
LARRY KOSMONT
APPOINTED TO STATE REDEVELOPMENT ADVISORY COMMITTEE
New Administration Plans to Activate Dormant Group
Los Angeles, CA, March 26, 2004 - Steve Westley, California State Controller, has announced the appointment of Larry Kosmont to the California Redevelopment Advisory Committee.
Mr. Kosmont is President and CEO of Los Angeles-based Kosmont Companies, a real estate and economics advisory firm. He is also a member of the California State Commission for Economic Development, which is chaired by Lieutenant Governor Cruz Bustamante.
The Redevelopment Advisory Committee was created by the State Legislature to advise the State Controller on the supervision of local and regional redevelopment agencies. There are almost 500 such agencies in the State, with a combined annual budget of over $2 billion. The agencies can buy and sell property, make loans, construct improvements and infrastructure, rehabilitate or remove structures, and use the power of eminent domain (condemnation).
Their primary funding source is known as tax increment financing, which means that if property taxes increase as a result of redevelopment, the relevant redevelopment agency receives a share of the higher tax revenue.
The Redevelopment Advisory Committee has been dormant since its enabling legislation, but it is being energized by the administration of the new State Governor, Arnold Schwarzenegger. Mr. Westley said an agenda is now being developed and a Committee meeting is scheduled for late April. A chairperson will then be elected.
Mr. Kosmont said today "Redevelopment is essential to California's continued growth. Redevelopment supports recycling and upgrading of current land uses and is often the best inducement program for smart growth projects."
He said the redevelopment agencies in the State are generally doing a competent job. "But unfortunately it seems that for every dollar the agencies spent on redevelopment they run into ten dollars worth of controversy."
Mr. Kosmont pointed out that there are land use and redevelopment controversies up and down the state, "from the scenic environs of Monterey to deep in the crowded cities of Los Angeles County, and increasingly in what were once the remote sands of our deserts."
But, he said, the inexorable growth of California's population makes the creation of new housing and new neighborhoods close to employment critical for the State's prosperity and business expansion.
"There is no other option than to turn inward and make better use of already developed areas. That means mixed use concepts, higher density housing, new neighborhoods, multi-use facilities-all so our citizens can work and live in convenient, attractive, friendly, and safe settings. The era of the long commute has reached its limits. Many of our new bedroom communities are simply too far out of town, too far from where people work. Of necessity, the era of redevelopment has begun, and is gaining momentum. It is time to fill in the empty gaps and underutilized space in already-settled areas." "A vast and state-wide realigning of our development and redevelopment resources and priorities such as we now face is bound to be complex, difficult, controversial, and expensive. Redevelopment often requires the reworking of established neighborhoods, sometimes with considerable and unpopular impact on existing small businesses. It may involve the controversial use of public subsidies to stimulate private investment. In the process, inevitably some toes get stepped on."
"But regardless of the problems, it is essential that we undertake redevelopment programs-unless we are willing to sit by and watch the economy of California choke on its own expansion."
Mr. Westley also announced other appointments to the Advisory Committee:
Contact:
Larry Kosmont - 213.599.4385
President & CEO, Kosmont Companies
Mr. Kosmont is President and CEO of Los Angeles-based Kosmont Companies, a real estate and economics advisory firm. He is also a member of the California State Commission for Economic Development, which is chaired by Lieutenant Governor Cruz Bustamante.
The Redevelopment Advisory Committee was created by the State Legislature to advise the State Controller on the supervision of local and regional redevelopment agencies. There are almost 500 such agencies in the State, with a combined annual budget of over $2 billion. The agencies can buy and sell property, make loans, construct improvements and infrastructure, rehabilitate or remove structures, and use the power of eminent domain (condemnation).
Their primary funding source is known as tax increment financing, which means that if property taxes increase as a result of redevelopment, the relevant redevelopment agency receives a share of the higher tax revenue.
The Redevelopment Advisory Committee has been dormant since its enabling legislation, but it is being energized by the administration of the new State Governor, Arnold Schwarzenegger. Mr. Westley said an agenda is now being developed and a Committee meeting is scheduled for late April. A chairperson will then be elected.
Mr. Kosmont said today "Redevelopment is essential to California's continued growth. Redevelopment supports recycling and upgrading of current land uses and is often the best inducement program for smart growth projects."
He said the redevelopment agencies in the State are generally doing a competent job. "But unfortunately it seems that for every dollar the agencies spent on redevelopment they run into ten dollars worth of controversy."
Mr. Kosmont pointed out that there are land use and redevelopment controversies up and down the state, "from the scenic environs of Monterey to deep in the crowded cities of Los Angeles County, and increasingly in what were once the remote sands of our deserts."
But, he said, the inexorable growth of California's population makes the creation of new housing and new neighborhoods close to employment critical for the State's prosperity and business expansion.
"There is no other option than to turn inward and make better use of already developed areas. That means mixed use concepts, higher density housing, new neighborhoods, multi-use facilities-all so our citizens can work and live in convenient, attractive, friendly, and safe settings. The era of the long commute has reached its limits. Many of our new bedroom communities are simply too far out of town, too far from where people work. Of necessity, the era of redevelopment has begun, and is gaining momentum. It is time to fill in the empty gaps and underutilized space in already-settled areas." "A vast and state-wide realigning of our development and redevelopment resources and priorities such as we now face is bound to be complex, difficult, controversial, and expensive. Redevelopment often requires the reworking of established neighborhoods, sometimes with considerable and unpopular impact on existing small businesses. It may involve the controversial use of public subsidies to stimulate private investment. In the process, inevitably some toes get stepped on."
"But regardless of the problems, it is essential that we undertake redevelopment programs-unless we are willing to sit by and watch the economy of California choke on its own expansion."
Mr. Westley also announced other appointments to the Advisory Committee:
John Shirey, Executive Director of the California Redevelopment Association
Steve Kamp, tax counsel to Chairwoman Carole Migden of the State Board of Equalization
Laura Gonzalez-Esacoto, interim Redevelopment Agency Director, City of Fremont
Val Toppenberg, Director of Redevelopment, West Sacramento Redevelopment Agency
Joe Hall, Redevelopment Manager, Santa Cruz Redevelopment Agency
David Baum, Director of Finance and Administration, San Jose Redevelopment Agency
Eric Pfost, Audit Manager, and Glen Campora, Housing Policy Manager, State Department of Housing and Community Development
Contact:
Larry Kosmont - 213.599.4385
President & CEO, Kosmont Companies
public + private transactions
Home | About Us | Services | Clients | News & Events | Contact
Copyright © 2004 by Kosmont Companies
All Rights Reserved