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Santa Rosa maneuvers to protect redevelopment loans

By KEVIN McCALLUM
THE PRESS DEMOCRAT

Santa Rosa made a last-ditch effort Tuesday at getting repayment of $5 million in redevelopment loans.

The City Council, acting as the successor agency to the former redevelopment agency, re-authorized three loans with the city in the hope it will prevent them from being invalidated by the state.

In an effort to cut the state budget deficit, Gov. Jerry Brown and the Legislature last year eliminated local redevelopment agencies and directed that most redevelopment funds be diverted to schools and other agencies that would otherwise receive the property tax revenues.

Most cities and counties are seeking ways to retain as much of the money as possible, including by redrafting loans. The Legislature, however, is considering a bill as early as today that would prevent such loans from being reforged, and the city sought to beat that deadline.

“It may be for naught, but we have to try,” Elaine Bennett, an accountant in the finance department, told the council.

The deal shortens the term of two loans to require repayment by 2020 and reduces the interest rate on all three from 6 percent to 3 percent to better reflect current yields.





3 Responses to “Santa Rosa maneuvers to protect redevelopment loans”

  1. Jim Bennett says:

    We have a runaway rogue government dead set on following their ICLEI directive. Which is to install their Smart Growth hardscape at all cost.

    The budget, the People, their oath be damned.

    I’ve said it before, I’ll say it again.
    THEY DON’T WORK FOR YOU.

    Thumb up 11 Thumb down 4

  2. brown act jack says:

    That is what you get when there is a lack of something or the other in the brains of the staff and council

    the law was written to say that loans between RDA and City Council were voided.

    But the CC instead of just complying with the law they opposed, just tried to sneak another theft of money from the State and the taxpayers who are paying taxes to the old RDA

    Law means nothing when money is involved, I guess.

    Read the state law and see what it says

    Thumb up 8 Thumb down 2

  3. Missy says:

    Why? To help ILLEGALS again. FFS, read our lips – NO NEW TAXES!

    Thumb up 8 Thumb down 4

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