County Approves New Redevelopment Plan : Public Facility Improvements May Be Speeded With Funds Generated by Tax Reassessments

Public facility improvements costing $2 billion over the next 45 years could be speeded in 14 Orange County communities under a new redevelopment plan approved Wednesday by county supervisors.

Beginning next month, a portion of the property taxes paid by residents in 14 targeted communities--all in the county’s unincorporated areas--will go into a new fund to pay for the improvements. The money will come from the increase in property tax revenue that occurs when market values increase and properties are reassessed.

Current services funded through existing property tax revenues thus are not directly affected, officials said.

The county expects the redevelopment plan to generate about $1.6 billion worth of improvements over the next 45 years. But the exact amount of potential expenditures will depend upon the health of the county’s economy, officials said, and the money raised will not cover the full $2-billion cost of improvements, which have been listed in previous county studies. The funds will be used for street widenings, sewer and sidewalk work among the improvement projects, and for loans in some cases for rehabilitation of houses.

Most Reaction Favorable

Unlike the controversial redevelopment plans proposed last year in Anaheim and Huntington Beach, the county’s plan does not involve use of the power of eminent domain to condemn privately owned property for public projects or raising taxes of existing residents.

Although there was some opposition from canyon residents, the redevelopment plan was heavily supported during Wednesday’s board meeting by people from all 14 unincorporated communities.

“Thank you for your efforts in making our dreams come true,” said Ann Quintana, head of a group representing the 14 communities. “After two years of work, we have finally got the plan we sought.”

Dhongchai Pusavat, general manager of the county Housing and Community Development office, said:

“I can envision 10 to 15 years from now we will have fixed everything that needs to be fixed in these communities. I really believe this is the best neighborhood preservation program in the state, if not the nation.”

Most of the 14 redevelopment areas are tiny residential pockets, smaller than a square mile, that are unincorporated and surrounded by cities. They include the neighborhoods of Midway City next to Westminster; Colonia Independencia near Stanton; El Modena near Orange, and Costa Mesa Highlands. There are other neighborhoods adjoining Garden Grove, Anaheim and Cypress.

The largest site includes Silverado and Trabuco canyons and covers about five square miles.

Among critics who testified against the redevelopment plan was Sherry Meddick of the Rural Canyon Conservation Fund. She said she was concerned that redevelopment might conflict with a growth management plan the county is considering as a backup to the Citizens Sensible Growth and Traffic Control initiative that was defeated in countywide balloting June 7.

And Esther Burkett, a wildlife biologist from the state Department of Fish and Game, complained that the environmental impact report for the redevelopment plan did not adequately address the plan’s potential impact on wildlife.

However, county officials said more detailed environmental studies will occur as specific public facility improvements are proposed.

Effects on Credit Feared

Supervisor Don R. Roth said he was concerned that the bonds sold to pay for the redevelopment projects may add too much to the county’s total indebtedness and thus adversely affect the county’s credit rating.

The board agreed to a 60-day study to determine what effect the redevelopment financing would have on the county’s fiscal profile.

Officials said redevelopment could be reduced or delayed if it would create financial problems for the county, or interfere with funding for other construction projects such as a new county jail or new court facilities.

In other actions Wednesday, the supervisors approved the proposed alignment for the Eastern Transportation Corridor, a planned tollway project that would link the Riverside Freeway near the Riverside County border with the Santa Ana Freeway near Tustin and Irvine.

However, the supervisors delayed for further study a portion of the corridor through Peters Canyon, where homeowners’ groups have protested various route alternatives.

The board also approved a proposal by Supervisor Gaddi H. Vasquez to create a citizens advisory committee to monitor construction of the corridor.