When the redevelopment system was dismantled in 2012, redevelopment leaders were afraid that the state Department of Finance (DOF) would force a fire-sale of redevelopment assets that could drive prices down and undermine cities’ ability to complete redevelopment projects. Now successor agencies are slowly putting real estate on the market, partly because both successor agencies and DOF are getting around to dealing with Long-Range Property Management Plans or LRPMPs – plans that delineate how to dispose of properties owned by former redevelopment agencies.
Property sales must be approved both by the successor agency’s oversight board and by DOF. Redevelopment agencies have been battling DOF over their ROPS, or Recognized Obligation Payment Schedules. By mid-June, 232 such plans had been approved, representing 60 percent of all successor agencies with property. A further 86 had been submitted to DOF. There is no central, publicly available resource to tell what is happening to ex-redevelopment properties overall. While much information is posted on the DOF Web site and successor agencies’ sites, it is not organized to enable systematic search or review.
Tara Matthews, one of our Partners, was featured in a recent California Planning and Development Report article about LRPMP property disposition. As Tara said in the article, “The disposition process is confusing, cities are short-staffed, the typical brokerage companies don’t understand the process and are hesitant to take it on, and developers don’t know what options are available or how to initiate the conservation with cities.”
Tara is a positive thinker who loves to identify opportunities and come up with well-thought out solutions. Anyone looking to learn more about the potential opportunities in post-redevelopment real estate should talk to Tara at RSG.
Written by Andrew Gee, a Senior Associate at RSG.