The Hollister City Council on Monday put off any consideration
on a proposal to join the alternative state program for
redevelopment.
The Hollister City Council on Monday put off any consideration on a proposal to join the alternative state program for redevelopment.
Council members Monday weighed a resolution to “opt in” for the “alternative voluntary program” as a redevelopment agency. Hollister is among 425 municipalities in California maintaining RDAs that are threatened by state legislation that cuts them from the budget, but provides an alternate program requiring payments back to the state. The state hopes to save about $1.7 billion by largely eliminating RDAs.
For Hollister, opting in for the new program would involve paying close to $4 million in a one-time fee, and then about $950,000 annually after that. If the city does opt in, it could pay the $4 million fee by having the state withhold $2 million per year, for two years, in housing funds.
At Monday’s meeting, council members were told they have more time before the state needs an official decision. They discussed reconsidering the matter at an upcoming special meeting. That gives city officials more time as the California Redevelopment Association and other groups fight the state’s move in the courts.
