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State Confirms Ownership of Redevelopment Agency Properties

Release Date: June 19,2015

The City of Santa Barbara recently received final ownership confirmation from the State of California on properties that were once owned by its Redevelopment Agency. The Railroad Depot and surrounding parking lots, Paseo Nuevo, and Bath Street Pocket Park properties are the last significant property holdings to be transferred back to the City. The State had earlier confirmed that all parking lots and structures downtown would remain under City ownership, after an earlier proposal threatened to declare them as surplus property to be sold. The City must also arrange for the sale of former Agency properties at 125 Calle Cesar Chavez with the proceeds distributed to local taxing entities.  

During the economic downturn, the State eliminated the City’s Redevelopment Agency, along with 400 similar entities throughout California, to redistribute local property tax increment revenue back to the School District, County, the City, and other local taxing entities.  The City prepared and negotiated a long-term plan for all of the properties, assets, contracts, and enforceable obligations once overseen by the Redevelopment Agency. The State’s most recent approval marks the end of the City’s long-range management planning process with the State in dissolving the Redevelopment Agency and confirming the transfer of properties and assets. 

Since the early 1970s, the Redevelopment Agency played a critical role in revitalizing the downtown and waterfront areas through various capital improvements.  Project examples include Paseo Nuevo, downtown parking structures, expanding Chase Palm Park, rehabilitating the Fire Headquarters, and restoring the Railroad Depot and the Granada Theater.