City dissolves Economic Development Corporation

The City approved during Monday's council meeting a resolution that will dissolve the Economic Development Corporation. The corporation was created to serve as, according to City Attorney Joseph Montes, a "financing vehicle" for the purchase of properties that were previously owned by the now-defunct redevelopment agency.
 
State-assisted redevelopment agencies (RDAs) were created with the intention of transforming blighted areas into places of commerce. In 2011, amidst a budget crisis, Governor Jerry Brown decided to redirect the funds to schools and other public services. This decision led to the closure of nearly 400 RDAs across the state. Alhambra's agency was among the ones that had to shut its doors; the closure left some RDA-owned projects and properties in limbo.
 
In 2014, the state approved the Long Range Property Management Plan (LRPMP), which was established to act as a "repository" of the RDA’s former properties, according to the California Department of Finance's website. Under the LRPMP, the "disposition" of those properties will fall under state law, which eliminates the need for the Economic Development Corporation.
 
"At this point its just an ongoing accounting and state filing fee obligation that we don't need to incur," said Montes.
 

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