The adoption of ABx1 26 effectively ended redevelopment in California for the time being.  Following the requirements established in ABx1 26 and its trailer bill AB 1484, Successor Agencies must prepare for the dissolution of their redevelopment agencies (RDAs) and the disposition of redevelopment agency assets.  Kosmont Companies is currently assisting Successor Agencies with dissolution and disposition strategy, and with a 26 year track record of successfully advising municipalities on property/asset management and disposition, Kosmont has the expertise and industry contacts to maximize economic development in connection with  the long-range Property Management Plans that are required as part of AB 1484.

For additional information on the redevelopment dissolution process and the full text of ABx1 26 and AB 1484, please visit: The California Department of Finance

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Successor Agency & Oversight Board Dissolution Services

As California Redevelopment has wound down in cities across the State, Kosmont Companies continues to help Successor Agencies (SAs) and Oversight Boards (OBs) navigate through the legal and technical aspects of the process of dissolution as mandated by Assembly Bill (AB)x1 26, AB 1484, and Senate Bill (SB) 107 (collectively, the “Dissolution Statute”).

Among our other redevelopment dissolution clients, Kosmont Companies has been retained by the California Department of Finance (DOF) since 2012 to provide comprehensive administrative staff support to six of the seven agencies – known under ABx1 26 as “Designated Local Authorities.”

Based upon the firm’s long and successful track record in the redevelopment arena and its current roster of dissolution clients, Kosmont is ideally suited to assist Successor Agencies and Oversight Boards with duties such as:

  • Preparing an administrative budget and Recognized Obligation Payment Schedule (ROPS)
  • Assistance with preparation of agenda packages (e.g. agendas, staff reports, resolutions)
  • Following through on pre-existing contractual obligations and other enforceable obligations
  • Attendance and participation at publicly noticed meetings
  • Review and analysis of former RDA-City loan agreements and payment schedules
  • Implementation of the Long-Range Property Management Plan
  • Communication with the DOF and other pertinent public agencies
  • Monitoring changes in legislation

For additional information on the redevelopment dissolution process and the full text of the pertinent legislation, please visit www.dof.ca.gov/Programs/Redevelopment/

Property Management Plans for RDA Dissolution

What is Required?

As mandated by the recently enacted AB 1484, Successor Agencies and Designated Local Authorities are now required to develop a long-range Property Management Plan (PMP) that governs the disposition and use of all former redevelopment agency properties. Former RDA properties cannot be retained, deployed, or sold without a Property Management Plan in place that has been approved by the Oversight Board and the California Department of Finance (DOF).

Why it’s Worth Getting Started Early – Cities are Initiating PMP’s Now

There is some upside in AB 1484 to a Successor Agency getting a Property Management Plan started and approved. Once the Successor Agency has received its Finding of Completion (FOC) from the DOF, a PMP can set the stage for retaining key properties for the city’s use or to put an asset into play for an economic development project that may yield new taxes and jobs for the community. If done properly, a PMP can be a key step to improving a city’s fiscal health.

FOCs are obtainable as early as spring 2013, and PMPs are due within 6 months of the FOC. Accordingly, cities looking to jump start economic development will initiate the PMP process shortly.

What Does a Property Management Plan Entail?

Once the Successor Agency has finished submitting the two required Due Diligence Reviews (Housing assets due by October 1 and all other assets due by December 15, 2012) and Due Diligence Payments are submitted, a city is eligible to receive a Finding of Completion from DOF. At that point, the Successor Agency must prepare the Property Management Plan, which includes:

  1. Inventory of all properties including the value at the time of acquisition & the estimated value today
  2. Estimate of lease, rental, or any other revenues generated by the property and the contractual requirements of these funds
  3. Purpose for which the property was acquired
  4. History of environmental contamination and associated remediate efforts
  5. Description of the property’s potential for transit-oriented development and the advancement of the planning objectives of the Successor Agency
  6. History of previous development proposals and activity, including the rental or lease of property
  7. Plans for use and disposition of properties

Kosmont Companies specializes in asset management plans and has been preparing property based strategies for over 25 years for redevelopment agencies, cities, counties, and other public agencies. Kosmont Companies with Kosmont Realty Company, our full service brokerage and financing firm, has the necessary skills to effectively prepare and implement the required Property Management Plans for former redevelopment agencies properties.

Strategic Financial Dissolution Services

Kosmont Companies has helped more than 50 cities and agencies with real estate financial advisory, valuation and disposition assignments.

The firm offers the following essential Financial Advisory Services to Successor Agencies and Oversight Boards statewide:

  • Asset Strategies
  • Highest and Best Use Evaluation
  • Broker Opinion of Value
  • Sale of Land and Property

Through Kosmont Transactions Services, the firm can additionally offer these public finance services:

  • Financing Alternatives for Existing Transactions
  • Negotiations of Transaction Issues

DLA Documents

Background: Following the December 29, 2011, California Supreme Court decision in California Redevelopment Association v. Matosantos, redevelopment agencies in the State of California ceased to exist.

Effective February 1, 2012, Successor Agencies “assumed all authority, rights, powers, duties and obligations previously vested with the former redevelopment agency.” Seven cities across California elected not to become the Successor Agency.

Kosmont Companies has been retained by the California Department of Finance (DOF) since 2012 to provide staff support to six of the seven agencies – known under AB 26 as the “Designated Local Authority.” Kosmont Companies specifically provides comprehensive administrative staff support and consulting services to the Los Banos, Mendota, Merced, Pismo Beach, Riverbank, and Santa Paula Designated Local Authorities.

Based upon the firm’s long and successful track record in the redevelopment arena, Kosmont  has expertise in following through on pre-existing contractual obligations, maintaining reserves, implementation of Long-Range Property Management Plans that govern the use and disposal of all former redevelopment agency (RDA) properties, preparing an administrative budget, preparing Recognized Obligation Payment Schedule (ROPS), and through Kosmont Transactions Services, which is registered with the Securities and Exchange Commission and the Municipal Securities Rulemaking Board as a Municipal Advisory firm, can assist in evaluating bond debt and enforcing former redevelopment agency rights to protect and benefit bondholders.

For additional information on the redevelopment dissolution process and the full text of the pertinent legislation, please visit www.dof.ca.gov/Programs/Redevelopment/

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