Why RDA's are Sick and Twisted Economics

Herman Hilkey has taken upon his self to educate the Public and City Council/Redevelopment Agency Board, about the purpose and finances of a Redevelopment Agency. He is sticking to the facts. It is in fact the facts that are problematic.

The idea that the Tax Revenue above the base line or start year of the RDA is almost all given to the City or the RDA is a flawed idea. This freezes or attempts to freeze the operational funds provided of the State and County Governments. This would then assume that the City would provide all the related services. Ok lets look at that. The City of Grand Terrace does not have its own, School System, Health Department, Courts, Jail, Agriculture Department, College System, AQMD, or any of a number of services provided by the State of California and the County of San Bernardino. Yet the city having an RDA nearly freezes the contribution we make for those services to the levels of 30 years ago. Can you live off of the income you earned 30 years ago?

The idea that the RDA and City gets their funds on the taxes based on the "Increased Value" of property is also problematic. The City / RDA has gotten fat and happy with the Inflated Value of property and some members of the City / RDA have been personally involved in earning their incomes from that process. Because of Prop 13 Property Taxes are rather static, UNLESS you have people who encourage home buyers to think of homes as investments, to flip. More sales of homes feed inflated prices, mortgages that can't be afforded, and oh yes Fees/Commissions paid to Realtors.

The "Increased Value" was mostly all fiction in terms of the Value of Grand Terrace Property. A home built and initially sold for 40,000 then valued at 500,000 30 years later has not really "Increased in Value". That increase is an Inflated Speculation and shell game. All the leaders and business who support and champion this kind of fake measure of prosperity should be looked at with a very critical eye. They are con artists, picking your pockets, while they kill your community.

Yes, this need to inflate home prices and sell them on a regular basis kills community and the building of a sustainable community. Increased Value, should only be assessed when the property PRODUCES MORE, not when the price is artificially inflated . What has Grand Terrace done to increase the Gross National Product?

Grand Terrace has converted farm land to housing. Increasing the housing supply should have lowered or stabilized the housing costs. But, this was not the case in the suspect game of housing. In addition the City of Grand Terrace specifically demands that homes be large and expensive if built. Just try to build a 300 foot one bedroom stand alone home in Grand Terrace. Home size and design elements for businesses have contributed to the inflated value not the practical value of building in Grand Terrace.

In addition to the false economics the RDA System provides California and Grand Terrace it was further abused by the illegal transfer of funds to the City's General Fund. Mr. Hilkey tried to suggest that the funds transferred are or were called pass through funds, or overhead, or a loan. Was this to make his votes to spend RDA money by the City per Tom Schwab's or Staff Recommendations justified? He is dangerously treading on the old game of let me define the word and I'll win any argument.

The RDA can pay the city or fund the city for specific costs that the City Staff performs for the RDA. Those costs or payments are limited to a specific maximum amount. The Grand Terrace RDA nor the City under Tom Schwab's Management kept sufficient accurate accounting of the actual RDA costs vs the Cost of City Operations in relation to the Planning Department's dual function. In addition city projects were paid for by RDA funds that were "Loaned" to the City with the intent of never paying it back per Mr. Scwhab's own statements before the Citizens and the City Council. 4.6 MILLION Dollars of funds were improperly transferred and mysteriously spent. Some of these funds were spent during the time Herman Hilkey himself was on the City Council. Some of these funds were spent during the time Mr. Tom Schwab City Manager, RDA Director was provided a home for his personal use.

The facts are in. Redevelopment Agencies have not been successful in accomplishing their intended goal of revitalizing "Blighted" areas. Grand Terrace as a whole should not have been designated as the boundaries of a Redevelopment Area this was the first abuse. The second abuse was any use of RDA funds to convert property use from Agriculture or Housing to Commercial forcibly. The Redevelopment Agency should never have become a Development Agency. The third abuse was to champion the ever increasing property prices and inflated values as being a good thing, and increasing public expenditures based on this fictional increased valuation and resulting funding levels.

Mr. Hilkey can explain what an RDA is, and how it was intended to be abused by the City of Grand Terrace all he wants. The fact is that a City Dependent on the funding schemes of an Redevelopment Agency is a failing or failed city. The citizens of Grand Terrace should be looking for a real bottom line and a reset to a realistic and sustainable level of government and government services which are to be offered to the Grand Terrace Citizens, and pay the appropriate portion of our taxes to the County and State for the services provided by those government agencies.

Here is a simple logic check. We are happy when gas prices go down. We should be happy when housing prices go down or become more affordable. It is morally sick to support and cheer housing prices and cost inflation while the number of people in poverty or near poverty is increasing. There should be attention paid to the social, political and yes historical evidence of what happens when basics such as housing or a place to lay ones head are denied to the majority of a population.

Can this city continue as a city without an RDA? Yes. We can have one person Contract for Services we can afford. There are four basic services. Sewage, Trash, Law Enforcement and Fire Protection. The City Maintenance Crew for the parks can be reduced or contracted out as a fifth contract. The Planning and Building Department tasks should be done by PROFESSIONALS at the County, who know the requirements for things like a commercial kitchen in a new public facility such as the Senior Center. Then let the City Council have final approval of a plan or action.

The city should also increase the utilization and participation of community members and organizations. How many dog owners does it take to make a dog park? Come on folks, got a shovel, rake and some weekends? There are things we can do for ourselves and our community if in fact we want a community.