Redevelopment Agency Dilemma Back to Council

Does El Cerrito really want to spend $1.85 million next year to keep its Redevelopment Agency? And another half million in 2013, followed by escalating amounts in subsequent years?

That's the question being presented to the City Council tonight, Monday, by the city staff in light of updated financial projections. The price tag can seem high for an agency whose annual income is about $5 million.

Staff is recommending that the City Council, acting jointly in its capacity at the Redevelopment Agency board, decide whether it wants to reaffirm its to retain the option of paying extra to keep the city's Redevelopment Agency.

If the city goes forward with the first payment, on Jan. 15, there would be "a reduction in revenue available for projects, programs, personnel, operations, and the General Fund transfer for indirect expenses and overhead," according to a staff report prepared for the council meeting. "However, opting in would enable the Agency to continue with projects and programs that, although scaled back, are valuable to the community."

Local Redevelopment Agencies across California are in a temporary state of suspension pending a state Supreme Court decision on two state laws enacted in July: AB1x26 and AB1x27. The former dissolved the agencies, and the latter gave cities an option to keep their agency by making voluntary annual payments.

The state's nearly 400 local redevelopment agencies are authorized to receive a portion of property taxes to assist in revitalization of blighted areas. Housing and infrastructure are common redevelopment projects though other activities — like assisting the rebirth of Cerrito Theater — can be redevelopment initiatives. In El Cerrito, the San Pablo Avenue corridor is the city's main redevelopment zone.

Attached to this article is a copy of the staff report, which outlines what the agency would be able to continue doing under the voluntary-payment program and what agency programs would be on hold. The report is from Lori Treviño, Redevelopment Manager; Hilde Myall, Senior Project Manager, Housing; and Dwayne Dalman, Senior Project Manager, Economic Development.

Also attached to the article is a copy of tonight's council agenda. The meeting begins at 7:30 p.m.

Correction: The original version of this article incorrectly reported that the amount El Cerrito would have to pay next year to keep its Redevelopment Agency would be $1.87 million if the state Supreme Court upholds the state's strict new limits on Redevelopment Agencies. It would be $1.85 million, according to city staff. The article has been corrected.