Update on Enhanced Infrastructure
Financing Districts

EIFD
Los Angeles County Approves Property Tax Increment Contribution to La Verne EIFD
On Tuesday, January 14th, 2020, the Los Angeles County Board of Supervisors (BOS) adopted a resolution approving its property tax increment contribution to the City of La Verne's Transit-Oriented Development (TOD) Enhanced Infrastructure Financing District (EIFD). This momentous occasion marks only the second fully-formed City-County EIFD partnership in the state, following the City of Placentia's (Kosmont client) partnership with the County of Orange, facilitated by the Southern California Association of Governments (SCAG - Kosmont client), formed in J uly 2019 ( more on Placentia ). 

Originally formed in October 2017, the La Verne TOD EIFD was the first district formed in Los Angeles County since the introduction of EIFDs with Senate Bill 628 in 2014. The City pledged all (approximately $0.18 per dollar) of its property tax increment,  a nd the County has now approved the contribution of 50% (approximately $0.148 per dollar) of its increment to fund approximately $33 million of infrastructure improvements around the forthcoming Gold Line Station, serving County assets such as Fairplex and Bonelli Park. The County’s approval hinged upon the estimated $37 million fiscal benefit to the County from new development and housing, including 15% affordable units.

Read L.A. County Fifth District Supervisor Katheryn Barger's comments on the La Verne EIFD Partnership in her newsletter by clicking here.
Los Angeles County Joins
Governing Board of New Redondo Beach EIFD
During the same BOS meeting on January 14th, the County approved the appointment of its designated members to the City of Redondo Beach Waterfront Park EIFD. This follows the action of the BOS in November 2019 adopting a Resolution of Intention to partner with the City of Redondo Beach in its EIFD, with the purpose of funding an approximately 50-acre regional coastal park on the site of the soon-to-be-decommissioned AES Power Plant within the City. Improvements to the area will include the regional coastal park along with restored wetlands, street/circulation/coastal access, parking, and site remediation efforts.
AB 116 Takes Effect January 1, 2020
Modifying EIFD Formation and Debt Issuance Approval Process
Signed in October 2019, Assembly Bill 116 has taken effect as of January 1st, 2020, eliminating the 55% vote required at the time of EIFD debt issuance, while revising the district formation process to include three (3) public hearings spaced 30 days apart, including a protest opportunity at the third public hearing. Cities and counties in the process of evaluating and forming EIFDs should take note and incorporate the extended approval process into their corresponding formation schedules, as well as consider the potential strategic impacts on the definition of district boundaries.

Review the bill text HERE, and contact the Sustainability and Housing / Special Districts team at Kosmont with any questions.
Please Come See Us at these Upcoming Events
ICSC Southern CA Idea Exchange in Long Beach January 30, 2020
ICA 61st Annual Winter Seminar in Santa Barbara January 31, 2020
League of CA Cities City Managers Conf. in Napa February 5 - 7, 2020
CONTACT US
Larry J. Kosmont, CRE ®
Chairman & CEO
(213) 507-9000
Ken K. Hira
President
(949) 226-0288
Joseph Dieguez
Sr. Vice President
(347) 731-5307

Felicia Williams
Sr. Vice President
(626) 427-2678  
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