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DEFENSE COMMUNITIES 360

California Redevelopment Agencies Consider whether to Pay Up

  • August 3, 2011
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Redevelopment agencies across California are figuring out whether they can afford to pay millions of dollars to the state as the price for staying in business.

In June, the legislature passed two bills as part of the state’s budget forcing its 400 redevelopment agencies to pay the state $1.7 billion initially and $400 million annually afterward to continue operating. The payments would be used to pay for schools, public safety and other municipal services.

A majority of agencies, which have until Oct. 1 to decide, plan to make their payments, reported the Sacramento Bee.

The March Joint Powers Authority, which has supported the redevelopment of former March AFB property, would owe the state $2.3 million upfront. The Inland Valley Development Agency, which is overseeing the reuse of the former Norton AFB, would owe $17.4 million upfront. Both are weighing their options, reported the Press-Enterprise.

Victorville’s city council recently voted to make its $2.8 million initial payment. Its redevelopment agency has invested funds that have spurred the conversion of the former George AFB into the Southern California Logistics Airport.

Last month, the California Redevelopment Association and the League of California Cities sued the state to block the changes from taking effect until the case can be heard. Their lawsuit, filed July 18, argues the legislation violates Proposition 22, a constitutional amendment approved last November intended to prevent the state from seizing local funds.

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