California Infrastructure and Economic Development Bank: economic development facilities: redevelopment agencies.
AB 1701 specifically targets low-income areas, including those designated as Opportunity Zones by the United States Treasury. By enabling the I-Bank to issue tax-exempt or taxable revenue bonds for financing such projects, the bill is positioned to stimulate investment in communities that have historically faced economic challenges. This financing mechanism is contingent on a successor law to the Community Redevelopment Law being enacted after January 1, 2020, thus linking the bill's effects to broader legislative changes concerning redevelopment practices in California.
Assembly Bill 1701, introduced by Assembly Member Cervantes, seeks to enhance the California Infrastructure and Economic Development Bank's (I-Bank) authority to assist with financing economic development projects, particularly in low-income census tracts. The bill amends existing sections of the Government Code, adds criteria for development agreements, and mandates that redevelopment agencies commit a portion of property tax increment to support projects that promote economic growth. This initiative aims to leverage tax increment funding for the development of facilities that can spur economic opportunities in designated areas.
While the bill is aimed at fostering economic growth in underserved areas, it may face scrutiny from local governments and community advocates concerned about the implications of tax increment financing on public funds. The requirement for the I-Bank to ascertain that the projects align with public interest criteria could lead to disputes about what constitutes sufficient community benefit. This aspect of the bill could become contentious as different stakeholders, including local agencies and community organizations, balance their interests against the goals of economic development.