Brown's Countdown, Day 61: Cities shift redevelopment funds to foil plan

Sacramento Bee ^ | 3/11/11 | Robert Lewis

[SmithL]

Local government leaders across California are hurriedly shifting redevelopment agency properties and money into city coffers ahead of a possible state move to abolish redevelopment and redistribute unspent funds.

It's unclear if such maneuvers will work. Gov. Jerry Brown's proposed budget also contains language allowing some of the transfers to be reversed or at the least wind up in court.

"This is going to be lawyers' delight," said John Shirey, executive director of the California Redevelopment Association.

Among the moves this week:

• Sacramento city officials approved the transfer of $1.4 million in redevelopment money to the city for a museum project and a promenade along the river.

• The city of Los Angeles passed a series of measures aimed at tying up $1 billion in redevelopment funds in contracts, projects and loans.

• The city of Santa Clara transferred $205 million plus 178 acres of property from its redevelopment agency to other local entities, including the authority working on a new stadium for the 49ers.

• Alameda County transferred 11 properties from its agency to the county and tied up $61.5 million in redevelopment funds through loans, contracts and agreements.

The last-minute transfers come as state lawmakers near a vote on the budget, which includes Gov. Jerry Brown's proposal to eliminate the roughly 400 local redevelopment agencies statewide and redistribute the funds. The Governor's Office projects the move will erase $1.7 billion of the state's $26.6 billion budget deficit.