Proposed Bill Would Let Redevelopment Agencies Directly Assist Local Businesses

Current law limits a redevelopment agency’s authority to give local businesses economic assistance. The California Redevelopment Law only explicitly authorizes agencies to provide commercial rehabilitation loans and, in certain circumstances, financial assistance for industrial and manufacturing facilities and capital equipment. However, AB 2531, introduced by Assembly Member Felipe Fuentes, would significantly enhance an agency’s ability to attract and retain local businesses.

AB 2531 would expand the definition of “redevelopment” and explicitly permit agencies to give businesses in a project area direct financial assistance to, among other things, retain or expand employment and increase buildings’ energy efficiency. It would also authorize agencies to establish small business incubators and to guarantee loans for small businesses within project areas. The California Redevelopment Association says that AB 2531 “has the potential to act as both a short-term and long-term economic stimulus program to get California’s economy moving again.”

The Assembly Housing & Community Development Committee will hear AB 2531 on April 28, 2010. To read the full text of AB 2531, click here.