Santa Rosa opposes ‘horrible’ bill aimed at redevelopment dollars

Santa Rosa has formally opposed a state bill that would prevent it from recouping $7.2 million in loans it made to its former redevelopment agency.

The City Council passed an ordinance Tuesday opposing what the city’s Sacramento lobbyist termed a “very horrible” trailer bill proposed by the state Department of Finance.

Lobbyist David Jones told the council that the bill “would in essence erase” the court wins that Santa Rosa and other cities and counties have achieved in recent months to reclaim funds the state grabbed in the aftermath of dissolving some 400 redevelopment agencies in 2012.

Local governments statewide have sought to re-establish agreements with the agencies charged with winding down redevelopment operations as a way to recoup the funding.

The central question in dispute in courtrooms across California is whether those type of agreements are “enforceable obligations,” meaning the local governments have a valid claim to the funds.

Sacramento Superior Court Judge Timothy Frawley in December ruled the state had “abused its discretion” when it rejected Santa Rosa’s requests for repayment of three redevelopment loans plus interest. The 3rd District Court of Appeal later sided with Emeryville and other cities in a similar case.

Having lost in court, the Department of Finance is now seeking a legislative fix that would prevent cities from being repaid through future property taxes, Jones said.

The good news is that Santa Rosa is not alone, he said. Sonoma County is owed $16 million and cities up and down the state are similarly opposed to the bill.

“There is not much appetite for moving this bill,” Jones said.

At a hearing on the issue, the Department of Finance “got a pretty good shellacking,” and several legislators have come out strongly against it, Jones said.

“They know the product they’ve put out there isn’t going to sail,” he said.

You can reach Staff ?Writer Kevin McCallum at 521-5207 or kevin.mccallum@press?democrat.com. On Twitter @srcitybeat.