Community & Economic Development Agency (CEDA) Dissolved

On December 29, 2011, the California Supreme Court upheld two bills that were part of the State of California’s efforts to close its significant budget deficit last year. In its ruling, the Court upheld ABx126, which eliminated Redevelopment Agencies throughout California. It also struck down ABx127, which would have allowed redevelopment agencies to remain in operation as long as they made payment to the State. The Court’s ruling set February 1, 2012, as the dissolution date for Redevelopment Agencies, and left no mechanism for reinstatement.

For the City of Oakland, the loss of Redevelopment funding created a potential budget gap of about $28 million – approximately $8.2 million in FY 2011-12 (February-June 2012) and approximately $20.3 million in FY 2012-13.

An Amended Policy Budget for Fiscal Year 2011-13 was adopted by the City Council on January 31 which closed the gap through significant organizational restructuring into a flatter, more traditional structure.

 

Services Decentralized to Four New Offices

Due to the loss of Redevelopment, functions previously performed by CEDA staff are either no longer completed by the City, or decentralized to one of four new offices. Follow the links below to go to their new websites:

  • Consolidated the Planning Division and Building Services Division into an Department of Planning, Building & Neighborhood Preservation, which better reflects the mission and goals of these services.
  • Converted CEDA Housing Services into an Department of Housing & Community Development, which will provide primary staff support for Housing Successor Agency activities. 
  • Established a new Office of Economic & Workforce Development to ensure that the City’s economic development priority has adequate resources and is focused on business relations, retention, attraction, and development. This newly formed office will be positioned to grow as legislative activity emerges that supports economic development in light of the dissolution of redevelopment. 
  • Established a new Office of Neighborhood Investment to transition from a Redevelopment Agency to a functional unit focused on implementing qualifying projects outlined in the Enforceable Obligation Payment Schedule (EOPS) and to support Successor Agency activities as detailed in the EOPS report.

For more information regarding the impacts of the loss of Redevelopment, see our Redevelopment Successor Agency page.

For more information regarding the Amended Policy Budget, visit the Budget Office website, or download the February 23, 2012 Press Release.