Redevelopment agencies were authorized by the California state legislature in 1945 to combat urban blight “in the interest of the health, safety, and general welfare of the people… and of the state."

At its best, redevelopment has been touted as an effective tool allowing communities to address issues of physical deterioration, revitalize downtrodden business climates, and add to California's affordable housing stock.

Indeed, places such as Pasadena's Old Town, Stockton's water front plaza and San Diego's Gaslamp Quarter have rightfully been touted as models of success.

Yet those success stories are often overshadowed by similar and numerous tales marked with corruption, failure, big government intimidation and fraud.

Often referred to as the “unknown layer of government” redevelopment consumes approximately 10 percent of all property taxes statewide in California, diverting $5 BILLION from counties, cities, special districts, and school districts.

Redevelopment also carries the threat of eminent domain empowering governments to confiscate, or take, private property as long as it is for a so-called “public use.”

And now, as California continues to face a $20 billion budget shortfall, watchful eyes are reporting that a growing problem is that many redevelopment agencies beset by problems, and failing to comply with state law have cost taxpayers millions.

In reviewing California redevelopment agencies, the LA Times found widespread instances of corruption, questionable spending and poor accountability at such agencies.

For Californians concerned about the appropriate use (or abuse) of their tax dollars, and an ever encroaching government, the Times piece is a must read.

For more than 50 years, redevelopment agencies have been major features on California’s fiscal landscape. January 1, 2009 was the time limit for the oldest redevelopment project areas to stop functioning. Yet as the time limits for agencies draw near, many are seeking new life-lines to continue working into the future.

As these agencies approach state and local officials requesting even longer time lines to complete projects, taxpayers should take close inventory of the redevelopment agencies operating in their communities.

And as shown in the following clip from Reason.tv host Drew Carey shows that there are viable alternatives to redevelopment for communities.