City leaders deciding whether to join state’s successor agency
program
The Hollister council in a 3-1 vote Monday took a step toward
possibly joining the state’s new redevelopment program.
City leaders deciding whether to join state’s successor agency program
The Hollister council in a 3-1 vote Monday took a step toward possibly joining the state’s new redevelopment program.
City leaders are in the midst of considering whether to continue the redevelopment operation as an “alternative successor agency” with the state, which is dismantling the prior program, barring the outcome of litigation opposing the move.
Council members Victor Gomez, Ray Friend and Pauline Valdivia voted in favor of enacting an “enforceable obligations payment schedule” for the rest of the year, as required by the state. Councilman Robert Scattini dissented, noting that he needed more time to study the issue. Councilman Doug Emerson was absent.
The payment schedule includes more than $17.5 million in expenses for the rest of the year. Among the figures discussed, officials noted that the RDA spends about $88,000 per month on employee compensation.
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.
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.
