Politics & Government

Redevelopment Ruling Expected Thursday

City officials say they hope the Supreme Court will rule that redevelopment dollars should be kept locally, not diverted to the state.

The California Supreme Court plans to issue a ruling Thursday on the legality of two new laws regarding redevelopment agencies, a decision that will have major ramifications for San Diego.

The court is considering whether the laws, passed by the Legislature earlier this year, are invalidated by Proposition 22, which bars the state from seizing local tax money. Redevelopment agencies are funded by the increase in tax revenue created by projects in their areas.

One statute forces redevelopment agencies to close, while the other allows local officials to keep them open if they make payments to the state.

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Supporters of the laws, including Gov. Jerry Brown, say the money is better used to fund schools and other municipal functions during the current tight budgetary times. They cite a state analysts report that shows the cost of redevelopment growing without any tangible economic benefit to the state.

Mayor Jerry Sanders said the court's decision will have an enormous impact on the future of many of San Diego's neighborhoods.

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"Redevelopment has been an incredibly effective tool for eliminating blight, improving infrastructure in our neighborhoods and creating jobs," Sanders said. "We hope the courts will rule against the governor's short-sighted money grab, and that we'll continue to be able to use redevelopment to invest in San Diego."

The city of San Diego and many other local jurisdictions chose to pay the state to keep their agencies open, but doing so reduces their ability to fund future projects.

"I strongly urge the California Supreme Court to rule on the side of millions of California's taxpayers who voted [overwhelmingly] to pass Proposition 22 to keep redevelopment dollars local," Councilman Carl DeMaio, who represents Rancho Bernardo, said in a statement. "If the court allows the state government to raid our local funds, I plan to join with officials across California to pass a ballot measure which will absolutely guarantee that redevelopment dollars remain local, where they belong."

Chief Operating Officer Jay Goldstone called San Diego's $70 million bill, due next month depending on the court ruling, a "ransom" payment.

San Diego officials point to downtown as an example of the success of redevelopment, and note that 20 percent of the revenues generated by the agencies are spent on building affordable housing projects.

"Redevelopment is one of our best tools to build infrastructure and affordable housing, eliminate blight, and improve the quality of life in our neighborhoods," Councilman Todd Gloria said. "I am hopeful that the court will reject this shortsighted attempt by Sacramento to kill this successful program that creates jobs and stimulates the economy, and listen to the voters who have demanded the state stop balancing its budget by raiding local funds."

If the Supreme Court overturns the laws, more money would be available for future projects, including a possible new stadium for the Chargers. Mark Fabiani, the team's point man on the stadium search issue, said previously that proposed stadiums in San Diego and Los Angeles would require redevelopment funding to get built.

-City News Service and Rancho Bernardo Patch Editor Shauntel Lowe contributed to this report.


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