On Monday, May 10, 2010, local redevelopment agencies throughout California are required to make the first of two devastating payments to county auditors to fund the $2.05 billion State raid of redevelopment funds that was authorized as part of the 2009-10 State Budget.
Instead of redevelopment agency tax generated dollars going to fund local job creation, economic growth and urban revitalization projects, this money will now be siphoned off to help pay the State’s obligations.
A Sacramento Superior Court Judge ruled on May 4 in favor of the State in response to a lawsuit by the California Redevelopment Association (CRA) which attempted to invalidate the raid.
“We strongly disagree with Judge Connelly’s ruling which effectively says the Legislature has unlimited discretion to redirect local redevelopment funds to any purpose it wishes. Under that logic any state program could be called redevelopment,” said California Redevelopment Association Executive Director John Shirey. “The Legislature needs to deal with its budget problems by making hard decisions using its own limited resources — not by taking away local government funds.”
While CRA has filed an appeal, agencies still are required to make their first payment on Monday, May 10, 2010.
The Third District Court of Appeal has denied CRA’s request for a temporary stay on making payments.
The Turlock Redevelopment Agency is now required to make their first payment of $3.3 million on Monday. Next year Turlock’s RDA will have to pay nearly $700,000.
Turlock Redevelopment Agency Manager Heidi McNally-Dial has said that the state raids will not impact current projects such as the Carnegie Arts Center or Joe Debely Stadium Renovation but could hinder the ability to secure bond funding for the newly planned $35 million public safety facility.