Status of Downtown Redevelopment: 'Too Soon To Tell'

On the heels of the California Supreme Court's decision to , City Council unanimously passed a resolution Wednesday appointing the City as successor to its Community Redevelopment Agency and allowing City Council to take over housing assets and functions.

“Our recommendation is that you approve this,” advised City Attorney Richard Adams. “So we are prepared for the worst case scenario.”

With the current legislation, no redevelopment agency will exist as of Feb. 1. But the City will continue to receive sufficient tax increment money to pay for the administration of the wind-down and the debt service, according to Adams.

Downtown Redevelopment

"So, what is the effect on the redevelopment project?" asked Councilmember Richard Schneider. 

"It's too soon to tell totally," said Adams. "... I'm working with the City Manager to look at every possible angle to move forward with that project. There have been a lot of interpretations of this ambiguous law."

South Pas has already entered an Exclusive Negotiating Agreement with Genton Property Group for the development of the downtown project. The next step would be entering a Disposition Development Agreement, says Interim City Manager Sergio Gonzalez. 

"There are provisions in the wind-down that you can continue affordable housing activities—and that would be an element we can continue for the downtown project," explained Gonzalez.  

Click here to read about the downtown development project.