Money from selling California's redevelopment assets may go to locals

More than 400 local redevelopment agencies in California expect to close their doors Feb. 1, but state Senate leader Darrell Steinberg said Thursday he’s found a pot of gold that could compensate for some of the loss to local communities.

As a budget-balancing measure, the state Legislature voted last year to dissolve redevelopment agencies. Supporters of redevelopment agencies say that will cut off vital money for affordable housing and local construction.

When redevelopment agencies close next month, they’ll begin to wind down projects and pay off debt. Then they’ll divide the remaining money between state and local governments, school districts and special districts.

Senate Pro Tem Steinberg says there’s another pot of money no one’s counted yet: the value of the agencies’ physical assets, like buildings, parking lots and leases.

"We have the ability to appropriate that money!" Steinberg said Thursday. "So one of the things I have my folks looking at right now, for example, is looking at what is the statewide value of those assets? We don’t know. I can tell you one thing. They’re significant."

How significant? "Significant enough to have a real conversation," Steinberg said.

Steinberg wants to dedicate the one-time proceeds from asset sales to local development and low-income housing projects. He’d need Gov. Jerry Brown’s support to carry out his plans.