FOR IMMEDIATE RELEASE
Gardena Chamber of Commerce Forum
on Measure G
10/11/2004 -- The forum began 30 minutes late before a
sparse crowd, most of whom were wearing No GRAB shirts and hats. The pro-Measure
G side was represented by Mayor Terry Terauchi, Councilman Oscar Medrano and
Councilman Steve Bradford. The anti-Measure G side was represented by Steve
Sherman of No GRAB (No Gardena Redevelopment Agency Boondoggle http://www.nograb.org).
Mr. Sherman made the first presentation with a brief review of private property
law from the Middle Ages to the United States Constitution. He explained that No
GRAB is not opposed to redevelopment but is opposed to the establishment of a
redevelopment agency in Gardena because of its expanded powers of eminent domain
and the ability to incur debt without voter approval. Mr. Sherman pointed out
that the City Council members lied in the ballot arguments for Measure G when
they said “No residential-zoned areas are included whatsoever” in the
Redevelopment Project Study Area. He said that the current Redevelopment Project
Study Area includes the entire Home Business zone in Southwest Gardena, which is
primarily homes, as well as other R-1 areas, apartment buildings and several
mobile home parks. A redevelopment agency is not going to get the City out of
debt because redevelopment agency funds cannot be used for general debt, only
its own debt. In fact a redevelopment agency usually increases debt.
Mayor Terauchi spoke first for the pro side. He talked about the importance
of redevelopment to the City’s future but avoided mentioning the phrase “eminent
domain”. He said the City has made progress over the last 30 years but recent
projects have all been single parcels of land. He wants to be able to “package”
multiple parcels of property for developers so that he can entice large
businesses like Home Depot to open in Gardena. According to the Mayor, large
companies don’t want to deal with multiple property owners and there is always
one property owner who balks and refuses to sell, causing the deal to fall
through. Having a redevelopment agency will allow the City to say to property
owners that the City will pay them “fair market value” for their property and no
one can refuse. Shortly after speaking, Mayor Terauchi left and was not
available for questions from the audience.
Councilman Steve Bradford then began talking about all the wonderful projects
redevelopment agencies in neighboring cities have. He stated that the City of
Gardena receives the majority of its tax revenue from car dealerships and card
clubs. He said a redevelopment agency is only a “tool” and it’s not about taking
people’s property, contradicting what Mayor Terauchi had just said. Councilman
Bradford said he is very sensitive to the issue of eminent domain and does not
want to use eminent domain. However he is only one vote on the council so could
easily be overruled. He mentioned that mom and pop stores can become part of new
developments similar to what was done with the Ralph’s shopping center on the
corner of Van Ness Avenue and Redondo Beach Blvd. (This project was done without
a redevelopment agency!)
Councilman Oscar Medrano stated that he owns a business that is in the
Redevelopment Project Study Area and he is not worried about eminent domain. He
is confident that his business will remain where it is. He said the city needs a
redevelopment agency because of areas like Gardena Blvd which have declined and
become infested with drug dealers. He wants to rebuild the community hand in
hand with the residents.
Because the pro side took additional time, Steve Sherman was allowed to speak
for an additional five minutes. He stated that property taxes and sales taxes
are both impacted by a redevelopment agency. The difference between the base
year property tax and following years’ property taxes is called the “tax
increment”. This tax increment goes to the redevelopment agency budget and in
effect caps the amount of property tax that can be used for city services such
as fire, police, libraries and schools. In this way, a redevelopment agency
harms a community. A redevelopment agency also impacts sales tax because most
projects are retail, tax-generating projects which increase the amount of sales
tax a city can collect. But this comes at a price of lost housing when
neighborhoods are replaced with retail shopping centers.
Councilman Bradford responded to a question from the audience about the
intended use of the mobile home park, Garden West Estates, on Western Avenue. He
said other cities have redeveloped mobile home parks into high density housing
and then moved the mobile home park residents into the new housing at the same
rates they were previously paying. Mr. Sherman stated that the 20% of the
redevelopment agency funds that are supposed to be spent on low income housing
often doesn’t get spent and sometimes is actually given away to another city to
build low income housing.
Councilman Bradford said that a redevelopment agency doesn’t have to be
permanent; when its job is done and debt repaid, it can be dissolved. Mr.
Sherman responded that redevelopment agencies almost never pay off their debts
so it is very difficult to get rid of them once they are in place. Most
redevelopment agencies have their city loan them money to get started and then
float bonds for their projects. Mr. Sherman strongly urged a “No” vote on
Measure G to prevent the City of Gardena from gaining so much additional power
over private property and the ability to incur debt without voter approval.
The forum ended at 8:10PM and the participants then spent additional time
talking with audience members. One resident attempted to have Councilman
Bradford sign a statement that the City Council would never use eminent domain
against her property but the Councilman told her he could only vouch for
himself, not the entire City Council.
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For More Information Contact:
No Gardena Redevelopment Agency Boondoggle Committee
Tel: 310-217-0681
Internet:
nograb@pacbell.net
