The Hollister City Council on Monday is scheduled to take
another step toward continuing its redevelopment agency as an
”
alternative successor agency
”
with the state set to dismantle the prior program.
The Hollister City Council on Monday is scheduled to take another step toward continuing its redevelopment agency as an “alternative successor agency” with the state, which is set to dismantle the prior program.
The council Aug. 15 put off a decision on whether to opt in for the new program, which includes annual payments approaching $1 million on top of a one-time $4 million fee – funds that would go to the state and prospectively other local jurisdictions. The state hopes to save an estimated $1.7 billion with the change.
The city’s hired attorney advised officials, though, that the state is requiring participating agencies to enact an “enforceable obligations payment schedule” for Aug. 1 through December within 60 days of the law taking effect, on Oct. 1. Lynn Hutchins from Oakland-based Goldfarb Lipman Attorneys noted in an Aug. 16 letter to the city that the California Supreme Court preliminary ruled in favor of the state five days earlier and that agencies planning to opt in for the new program should approve the payment schedules.
“This language means that after August 27, 2011, agencies will not be able to make routine loan payments or other payments unless the agency has adopted an Enforceable Obligation Payment Schedule,” according to the letter.
Monday’s special meeting is set for 5 p.m. at Hollister City Hall, 375 Fifth St.
Part of the holdup for cities such as Hollister in fully committing has been that the California Redevelopment Association is heading up the legal action against the state for the move to largely cancel the agencies.
