Politics & Government

City Council to Decide Post-Redevelopment Strategy

The San Diego City Council is set to consider how to handle redevelopment agency funded projects after the agencies are dissolved in February.

The fallout from the recent state Supreme Court decision that killed redevelopment agencies will begin to hit the city of San Diego next week, a city official disclosed on Friday.

The City Council on Tuesday will decide whether to create a so-called "successor agency" to handle the remaining responsibilities of the city's Redevelopment Agency, which will be dissolved on Feb. 1.

Under legislation passed by the Legislature last year, redevelopment agencies are to be phased out, and their activities wound down by successor agencies. The money held by such agencies across the state will be transferred to fund schools, prisons and other state obligations.

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According to a memo from Redevelopment Assistant Director Janice Weinrick and city Chief Operating Office Jay Goldstone, the city could choose not to form a successor agency. In that case, Gov. Jerry Brown would appoint a three-member panel to handle the task.

Staff recommends that the city take on the responsibility so it can keep control of its assets.

Find out what's happening in Rancho Bernardo-4s Ranchwith free, real-time updates from Patch.

Projects currently under contract, like the transformation of the downtown waterfront that broke ground on Thursday, will continue until completed. Alternate funding methods will have to be found for others that didn't get that far in the planning process.

The city would also have to take on the redevelopment agency's affordable housing portfolio.

On Wednesday, the City Council's Land Use and Housing Committee will hear a report from the Centre City Development Corp.—the city's downtown redevelopment arm—on the impact all of these changes will have on affordable housing.

Brown initially proposed phasing out redevelopment agencies around this time last year when he introduced his 2011-12 budget, believing the money was better used paying for city services and education. The agencies were funded by the increase in tax revenues created by their projects, and that money went to fund more projects.

The agencies were required to set aside 20 percent of their revenue for affordable housing.

-City News Service


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