Council Member Patricia Aguilar announced on her Facebook page that at the meeting of August 2, 2011 "the City Council voted to continue with redevelopment, although it will cost the city what the staff has termed a $4.1 million "ransom" payment to the state to do so. The other alternative under the new state law would be to dissolve the redevelopment agency altogether."
The payment will come from an account dedicated to affordable housing projects and is planned to be repaid by the City in the next three years. The payment is not anticipated to have a significant impact to any planned affordable housing.
This action allows the City to move forward on major redevelopment projects, such as Bay Front Development, Third Avenue and Main Street public improvements and more.
The state law that requires cities to relinquish some of their redevelopment funds, in order to be eligible to have a redevelopment agency, is being challenged in court. But until that case is settled, Chula Vista will lose $4.1 million of their redevelopment funding in the first year and a little over $1 million annually in following years.
A recent article in the Union Tribune sheds more light on where this money actually goes --- and it would appear that the City may be getting some of it back, as would our local school districts.
How much they get back and plans on how the money will be used are questions that come to my mind. I'll see what I can find .... if you have knowledge, feel free to share ...
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