Burbank Divided in Fight Against Blight

Others question whether the city really needs to devote more tax money to redevelopment.

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Relative to its neighbors, the city's economic health is enviable. Commercial real estate is booming. Office vacancy rates have squeezed down to about 3%. And total assessed valuations have increased by nearly $2 billion since 1990, representing a faster rate of growth then Glendale, Pasadena or Los Angeles.

The source of authority for municipal redevelopment, the state Community Redevelopment Act, is supposed to be used to combat blight. Critics contend it has been misused to include relatively prosperous areas.

Moreover, the law allows local redevelopment agencies to divert from other public services the increase--or increment--in property taxes generated by rising property values. Critics, such as Assemblyman Tom McClintock (R-Northridge), have lambasted redevelopment as a "corporate welfare" program that robs basic services.

McClintock is sponsoring a bill to abolish redevelopment. He calls redevelopment agencies "the rogue elements of local government."

Backers of the bill say that with redevelopment agencies forming all over the state the hit on property tax rolls is excessive.

In Los Angeles County, staff members used to keep close track of redevelopment areas out of concern that too much tax money was being siphoned away. "But we don't have those resources anymore," said Martin Zimmerman of the county chief administrative office.

Burbank already has created three redevelopment project areas, and if the South San Fernando project is approved, 18% of the total acreage of the city would fall under redevelopment law.

Officials have been praised for the tangible results of redevelopment through such projects as the Media City Center mall and the AMC Theatres complex in the downtown shopping district.

"I knew Burbank before the redevelopment," said Gordon Sanders of Washex Machinery of California Inc., a supplier of machines to commercial laundries. "What's there now is much better than before."

Others question the continued need to battle blight in a city where the assessed value of all real estate has jumped 26% since 1990, contrasted with 21% for Glendale and Santa Monica and 11% for Los Angeles.

"At some point you have to declare victory," Councilman Ted McConkey said. "We have given away subsidies that are unbelievable."

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