Local cities are facing near financial disasters and might lose millions of dollars, resulting in possible staff layoffs, officials throughout the west San Gabriel Valley said this week.

Instead, redevelopment agencies throughout California will have to be shut down Feb. 1.

At the same time, the court ruled the legislation abolishing the redevelopment agencies throughout state constitutional.

Rosemead City Manager Jeff Allred reported that Rosemead expects his city will lose more than $1 million in revenue with the elimination of the city's redevelopment agency. He will be making a report to the Rosemead City Council when the local municipal body meets next Tuesday.

Monterey Park City Attorney Mark Hensley, responding to a council question Wednesday, said that city is also facing more than a million dollars in losses and cancellation of a number of redevelopment projects, including two key shopping centers.

Hensley gave a brief report stating that that the city redevelopment agency has various existing and pending agreements in connection with the several redevelopment projects. He said city staff is currently reviewing the impact and will report to the council at a subsequent meeting.
"It's a very convoluted mess that they have left us with and we are just beginning to work on it," said Monterey Park City Manager Paul Talbot.

When it abolished redevelopment agencies, the state Legislature was taking more than a billion dollars in city and county redevelopment funds to help balance the state budget gap. The legislature said it would use the money for schools, state services and some for municipal services.

The Monterey Park projects that are at risk include several that are in the early development or financing stages. This includes the Towne Center that is slated for the southeast corner of Garvey and Garfield avenues and the Market Place, a major project planned on the south side of the city along Highway 60.

In the past, several major projects including Atlantic Square, City Hall and Langley Senior Center, moderate-low income housing and the new Atlantic Times Square were developed with redevelopment agency support. Alhambra and Rosemead have also used redevelopment funds to bring in new business to their downtowns.

The city of Rosemead recently completed rebuilding two public swimming pools using redevelopment funds as leverage.
Following the ruling by the California State Supreme Court upholding the elimination of redevelopment agencies, the California Redevelopment Association and League of California Cities vowed to work with state legislators immediately to develop legislation to revive redevelopment in order to protect local communities, job creation and the economy.

The state Legislature resumed meetings Monday and is expected to take up a solution to the closing of redevelopment agencies.