Community Development Agency
Purpose and History of Redevelopment
in Foster City

Foster City developed as a primarily residential community; its commercial area development was delayed because of high land and construction costs. The City therefore relied heavily on property taxes to fund necessary community services. City officials recognized the need to expand and diversify the City's financial base, such as with increased sales tax.  This became particularly important after Proposition 13 was adopted in 1978, restricting property tax revenue.

The redevelopment agency in Foster City was established to eliminate blight conditions that have become barriers to the City's full development. Prior to the adoption of the first redevelopment agency project area in 1981 and the second and third project areas in 1999, underdeveloped land had retarded economic growth and if allowed to continue would have potentially constituted a substantial financial drain on the community.

Revitalization of these underutilized areas will in the long term help to relieve the tax burden the other areas of the community have shouldered. As the project areas are revitalized they have begun to generate enough revenues to pay their own way. The end result of redevelopment envisioned for Foster City is a completely developed community with a stable, diverse economy and the means to support itself through a balance of revenues and expenditures.

The Foster City Community Development Agency was created to invest in the community in ways that will provide a return on the investment. This may include improvements to traffic circulation,  parks or other public facilities, or direct contributions to assist a developer in the process of  developing land. A redevelopment agency only receives funds that are a result of growth. When vacant land is developed and urbanized land redeveloped, the assessed valuation increases and a portion of the property taxes derived from the increase (tax increment) goes to the redevelopment agency. The idea is that an investment of funds will stimulate a stagnant or slow-to-develop area or economy so that it will continue to develop or redevelop on its own.

The general goals of the plan, Goals of the Foster City Redevelopment Agency, include improving the economy, traffic circulation, public facilities (including lagoon dredging), increasing housing and employment opportunities and protecting the environment. The Agency is also charged with fulfilling the goals of the City's General Plan.

These goals can best be attained if the City continues to grow to build-out. Without a fully built out commercial area the City will not gain status as a complete community and there will be no balance between its revenues and expenditures.