Los Angeles is moving ahead with plans to create an economic development department to replace its Community Redevelopment Agency.
City officials began working on a plan last summer to replace the entity designed to bring new development to blighted areas and create affordable housing.
The new version will work with a new nonprofit corporation that would seek out businesses and help steer them through the city’s permitting processes.
The department would fall under mayor’s office and begin with a $32.5 million budget with future funding based on completed deals.
Unlike the CRA, which was shuttered as part of the statewide elimination of redevelopment, it would not get property tax increment generated through rising property values.
Council members included a number of provisions to be dealt with in the department, including consideration of minority investors and small businesses.
The Valley Industry and Commerce Association and the downtown’s Central City Association came out in support of the measure.
CCA president Carol Schatz said that the new agency will help counter the city’s image of being unfriendly to business.