Suisun City's Redevelopment Dilemma

Ever since the governor signed the state budget, it effectively ended redevelopment as it had been and Suisun City government has been placed in a delicate position.

The state is demanding $4.5 million this year and $1.05 million next year as part of what city officials call a “pay to play” scheme. If the city makes the payments each year, the redevelopment agency can function, but make no new deals.

While there are no outstanding projects left to complete construction, the rules would leave the city in the lurch as far as enticing more tenants to the Harbor Square, and being able to afford special events past December like the 4^th of July celebration, City Manager Suzanne Bragdon said.

Technically the crunched numbers pan out a bit better if the city pays the money, Bragdon said – a shortfall of $947,000 versus a shortfall of $1.2 million -- but either way it looks like the city will have to make a 10 percent cut to services on top of the 25-30 percent it has made over the last couple years.

The City Council is due to make up its mind this fall, sometime before the state’s Oct. 1 deadline. Adding to their decision is the dual nature of many senior city jobs. Many senior city workers split time between doing work for redevelopment and the city, meaning they are paid out of the general fund and the redevelopment agency’s budget.

“It’s intertwined,” Bragdon said.

The city may have to raid $2.2 million dollars in money set aside for housing, including its first-time homebuyer's program and another program that subsidizes improvements to homes’ exteriors and yards.

There’s been some talk of preserving the 4^th of July celebration with donations and sponsorships.

But it may all be moot, depending on the courts.

The California Redevelopment Association is due to file a lawsuit against the state in the next few days to both strike down the provision ending redevelopment in the state budget and halt its effects while the court decides its fate.