Santa Clarita / Antelope Valley : Santa Clarita Approves $1-Billion Recovery Plan

The city of Santa Clarita will spend more than $1 billion in local property taxes over the next 45 years on an ambitious plan to recover from the Northridge earthquake, while simultaneously improving its infrastructure, redeveloping blighted areas and building affordable housing.

The City Council adopted the Santa Clarita community recovery plan by a 4-0 vote on Tuesday. Councilwoman Jill Klajic was absent.

The debt from the plan, which will be implemented over 30 years, could take as long as 45 years to pay off. It will be paid for with a percentage of property taxes in the redevelopment zone, which is encompassed by the city’s original boundaries, excluding undeveloped land, golf courses and other areas.

Officials were adamant that property taxes were not being raised to fund the plan.

“It does not raise taxes. It does not raise taxes. It does not raise taxes,” said Steven Peck, a financial consultant hired to help implement the agency.

Instead, as home values and property taxes rise, the agency will take about half of the increase to fund improvements, Peck said.

Those funds would otherwise go to such public agencies as schools and county government. Peck said the state would reimburse local schools for funds lost as result of the agency.

For the first five years, the agency will focus its aid on restoring quake-damaged structures and helping individuals and businesses who suffered losses in the quake. The program is scheduled to begin in the spring.

Next, the agency will tackle a backlog in repairs to city streets, roads and bridges and other public property. Finally, the Redevelopment Agency will help revitalize blighted areas such as east Newhall and build affordable and senior housing.

Although areas annexed to the city after its 1987 incorporation are not included in the zone, they are eligible for improvements if it is determined that they would benefit from the overall project.

Councilwoman Jan Heidt praised the plan, saying it gets to the meat of the issues facing the city.

“I just hope I’m around in 30 years to see what we’ve done with it,” she said.

Before last month’s quake, attempts to establish such an agency had been stalled because of time and cost constraints. But by using emergency powers brought about by the quake, the council was able to activate the agency and define its boundaries without going through the standard--and potentially arduous--environmental review process.

“What the quake did is loosen up some regulations and make it easier for us to jump through some of the hoops we needed to jump through,” said city spokeswoman Gail Foy. “We think the result is going to be great for this community.”