The agency is formed out of two decision making bodies: the governing board and the legislative body, which usually consists of the City Council. A redevelopment agency has a set of general powers, which allows them to act as any other agency and make, amend and repeal laws; appoint and employ temporary and permanent officers; and make contracts, just to name a few of their powers. The agency, once formed, also receives tax increments, which is in the tax base after property is improved and reassessed or through the maximum annual increase which is 2% permitted by Proposition 13. Redevelopment Agencies are formed for blighted areas of a city or county. Blight is characterized as being “predominantly urbanized and having physical and economic conditions that cause blight, such as: unsafe, unhealthy buildings in which people live or work; economically viable use or capacity of buildings and lots substantially hindered, incompatible use of adjacent or nearby properties, or subdivided lots or irregular form and shape.

Economic findings of blight include: depreciated stagnant property; abnormally high business vacancies, low lease rates, high turn over abandoned buildings, lack of necessary commercial facilities, residential overcrowding, excess liquor stores, bars, adult businesses; and high crime rate, serious threat to public safety and welfare. Jackson would most likely fit into the economic blight conditions as businesses have recently relocated to the Martell areas leaving empty shops along Main Street and throughout Jackson. However, findings of blight are necessary and steps must be taken to first enact the agency, create a redevelopment project area, and then properly expend the agency’s funds. There are 6 tools to redevelopment and they include: Property acquisition and Assembly; property disposition; brown field’s development; site development; public improvements; and low and moderate income housing. Just the mention of “property acquisition” scares many. Gibson explained that within a survey area, or for purposes of redevelopment, the agency may purchase, lease, acquire by gift, etc., property or otherwise acquire property by eminent domain.

The eminent domain acquisition requires that the agency have an appraisal and attempt negotiations with the property owner as well as no pre-commit to condemnation prior to the adoption of a resolution of necessity or the land taking requires two-thirds majority vote of the legislative body, being the City Council. In the process the agency must provide relocation assistance and benefits to the persons and businesses displaced by their projects. But again eminent domain is not the only way the agency can go about obtaining property they can also sell or lease a property. Gibson said Cities are doing what many call “flipping” and are buying homes fixing them up so they are not such a blight to the neighborhood and them reselling them for a profit. In terms of Brown Field development an agency has the regulatory authority to order property owners to clean up hazardous soil and groundwater contamination, as well as undertake such remediation at the owner’s request. The agency is not required to purchase the property, but can off-set the remediation costs form acquisition of the parcel. The redevelopment agency is also able to receive loans and grants for various projects, such as commercial projects. Gibson concluded the item and being that it was purely informational no action was taken except to have City Council members on the Economic Development agency to take the information back and discuss if further with the rest of the group. The item will return at some point to the City Council after the group discusses whether or not a Redevelopment agency would be beneficial to the City of Jackson.