City could join Legislators in asking for more time on redevelopment |

City could join Legislators in asking for more time on redevelopment

Adam Jensen

SOUTH LAKE TAHOE, Calif. – The South Lake Tahoe City Council may join California Legislators in asking for more time to figure out how to handle a December State Supreme Court decision that is expected to result in the elimination of redevelopment agencies statewide.

On Tuesday, the council may approve a letter to Gov. Jerry Brown and members of the California Legislature in support of a bill that could temporarily extend the life of the state’s redevelopment agencies. The council will also hold a work session following its regular meeting to discuss the ramifications of dissolving the South Tahoe Redevelopment Agency.

Sen. Alex Padilla, a Los Angeles Democrat, announced Friday that he and other lawmakers want to extend the Feb. 1 deadline for closing some 400 redevelopment agencies throughout the state. It’s uncertain if they have backing from legislative leaders or Gov. Jerry Brown.

Lawmakers voted to eliminate the agencies in their budget package last summer as a way to funnel their property taxes toward local services. The move was supported by the governor and upheld last month by the state Supreme Court.

Padilla introduced SB659 on Friday. He said an extension to April 15 is needed to “give ourselves a little more breathing room” while the state figures out how to continue economic development projects.

Without an extension, successor agencies would be tasked with resolving any unsettled redevelopment agency matters.

In a draft letter to state legislators, South Lake Tahoe Mayor Claire Fortier urged caution against a speedy dissolution of redevelopment agencies, noting it could hinder California’s economic recovery.

“Without the extension, successor agencies are responsible for winding down all assets, properties, contracts, leases, records, buildings, and equipment of the former redevelopment agencies, and laying off workers -actions that are incredibly difficult to undo,” Fortier said.

“Once the dissolution process starts, it will lead to lawsuits, endless delays, and ongoing conflict, making it more difficult to develop a new job creation and community revitalization program in California, Additionally, the dissolution process could take years,” Fortier said. “Thousands of jobs and vital economic development and affordable housing projects will be lost in the meantime.”

The City Council meets starting at 9 a.m. Tuesday at Lake Tahoe Airport.

– The Associated Press contributed to this story.

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