Hercules Counsel Prepares for State’s Property Clawback

Hercules is among cities that should be wary of the state’s post-redevelopment abolishment actions.

Several cities are facing the threat of having the state reverse redevelopment property transfers to other public agencies made after Jan. 1, 2011, the Contra Costa Times reported.

State Controller John Chiang sent out letters to California city and county redevelopment successor agencies on April 20.

In part, the letter said that if public agencies, such as the Hercules Redevelopment Agency, transferred redevelopment properties to another public agency after the first day of 2011, the sate orders them “to immediately reverse the transfer and return the applicable assets to the successor agency of the relevant redevelopment agency.”  

Hercules transferred four properties post-January 2011. City Manager Steve Duran told the Times that the city’s redevelopment lawyer is studying the letter.

Pinole’s debt oversight committee will meet Monday to discuss the letter and its implications, while Hercules and San Pablo committees will also meet Monday but the letter is not on their agendas, the Times’ reported.