The Los Angeles City Council has overwhelmingly approved a series of measures designed to retain control over more than $1 billion in redevelopment projects, loan agreements, grants, services contracts and other measures in light of Gov. Jerry Brown proposal to dissolve the Community Redevelopment Agencies (CRAs) and divert all unencumbered funds to other state uses.

“What we are attempting to do is protect assets that are valuable to us,” said City Councilmember Herb Wesson, 10th District. “I believe if we do not take action and [the California Legislature does], we will regret that. Our backs are against the wall and it’s in our interest to act quickly.”

The council, in a special joint session with the Board of Commissioners of the Los Angeles Community Redevel-opment Agency (CRA/LA), heard from numerous speakers in a five-hour public hearing before nearly unanimously approving a series of measures designed to shield dozens of projects from a proposed state budget that would eliminate all 400 CRAs statewide.

“We have great concerns over this legislation,” said CRA/LA CEO Chris Essel. “We’ve identified projects we felt we could move forward that could be signed as soon as this week. With a great deal of caution, we’ve moved forward with what we have today.”

The city council and CRA/LA are negotiating the creation of a “cooperation agreement” that encumbers planned projects valued at $930 million over the next five years to be built in all 31 of the agency’s project areas. The council approved amendments that would require any successor to CRA/LA to be a part of local government and would attempt to protect the jobs of its more than 200 employees.

“Huge steps were taken today to continue the mission of redevelopment in Los Angeles,” Essel said. “But, let us be clear, we hope these emergency measures won’t be needed, and we will be able to continue the CRA’s mission of creating jobs, reducing blight, revitalizing troubled neighborhoods and building much-needed housing.”

The council’s decision comes on the heels of the state Controller’s office finding that CRA/LA, the largest such agency in California, for the most part administers its $1.7 billion in funds and oversees projects appropriately. The report cited CRA/LA for two issues that the agency has assured it will comply with in the future.

One issue concerned outside auditors failing to note in their reports to the state that it had no “excess surplus” in its affordable housing accounts. The other issue involved the disputed method CRA/LA distributed pro-rated administrative charges that the county imposes on property tax increment before transferring it to the agency. CRA/LA officials had developed an alternative cost-allocation approach on its own but assures the Controller it will comply with the appropriate policy from now on.

“We’re delighted that the state Controller’s auditors found so little to criticize in its review of our operations,” said CRA/LA CEO Chris Essel. “The review is another validation of our professional staff and the tremendous work they do to improve neighborhoods, build affordable housing and create jobs. There’s a reason we’ve won eight straight awards for excellence from the Government Finance

Officers Association.”