1. The Rise & Fall of TIF in California International Downtown Association – Annual Conference – Minneapolis – September 2012

2. The Rise…  Traditional strong role of redevelopment  TIF starts in the 1950s  Property tax only  Accelerated after Prop 13, way for local capture of tax revenue  400+ agencies  Public/private partnerships public dominated  Slow evolution of downtown management organizations The Rise…  Traditional strong role of redevelopment  TIF starts in the 1950s  Property tax only  Accelerated after Prop 13, way for local capture of tax revenue  400+ agencies  Public/private partnerships public dominated  Slow evolution of downtown management organizations The Rise & Fall of TIF in California

3. The Fall: California In Crisis  2011: $26B state budget deficit  TIF accounts for 12% of all statewide property tax -- $5B+  Governor Brown announces intention to eliminate TIF and redevelopment  Political calculus: Redevelopment vs. school, police, fire, basic services  Power of the message and the messenger The Fall: California In Crisis  2011: $26B state budget deficit  TIF accounts for 12% of all statewide property tax -- $5B+  Governor Brown announces intention to eliminate TIF and redevelopment  Political calculus: Redevelopment vs. school, police, fire, basic services  Power of the message and the messenger The Rise & Fall of TIF in California

4. The Fall: Legal & Political Miscalculation  Two bills pass in June: eliminate TIF or share revenue  Redevelopment advocates advance legal challenges on both  Dec 29, 2011 Supreme Court decision: worst possible outcome for TIF  400+ agencies dissolved by Feb 2012  Role of successor agencies to pay existing obligations & dispose of assets The Fall: Legal & Political Miscalculation  Two bills pass in June: eliminate TIF or share revenue  Redevelopment advocates advance legal challenges on both  Dec 29, 2011 Supreme Court decision: worst possible outcome for TIF  400+ agencies dissolved by Feb 2012  Role of successor agencies to pay existing obligations & dispose of assets The Rise & Fall of TIF in California

5. The Fall: Lessons from California  Avoid abuses! Dubious projects from golf courses to greenfield big box stores Designation beyond slum and blight, wide swaths of commercially zoned land Use of redevelopment funds to backfill municipal operations  Education and messaging – document & explain benefits  Stay in front of the political winds  Bottom line: Promote the responsible use of TIF focused on its primary objectives The Fall: Lessons from California  Avoid abuses! Dubious projects from golf courses to greenfield big box stores Designation beyond slum and blight, wide swaths of commercially zoned land Use of redevelopment funds to backfill municipal operations  Education and messaging – document & explain benefits  Stay in front of the political winds  Bottom line: Promote the responsible use of TIF focused on its primary objectives The Rise & Fall of TIF in California

6. California Downtowns Adapt & Evolve  Opportunities for private-sector initiated public/private partnerships California Downtowns Adapt & Evolve  Opportunities for private-sector initiated public/private partnerships The Rise & Fall of TIF in California

7. Long Beach Explores a CDC The Rise & Fall of TIF in California

8. San Diego Retools The Rise & Fall of TIF in California

9. Brad Segal – brad@pumaworldhq.com