City Staff to Propose Redevelopment Ordinance to Council

An ordinance that complies with new California legislation involving redevelopment projects will be proposed to the City Council at its Tuesday meeting.

The ordinance—which was added to the agenda after —will be introduced for a first reading Tuesday, and if adopted at a future meeting, it will restructure redevelopment projects so they comply with new state laws.

According to the staff report, the ordinance addresses Assembly Bills 1X-26 and 1X-27, which eliminate redevelopment agencies but allow cities to continue to redevelop if they pay an annual remittance to the county auditor-controller. The ordinance also asks that the city “reduce its allocation of tax increment to the Low and Moderate Income Housing Fund” by $4.2 million for the current fiscal year.

City staff estimate that Poway will need to pay California $10.3 million this fiscal year and $3.3 million for 2012-2013 to comply with the new laws. The funds for this fiscal year will be pulled from the unallocated redevelopment and housing set-aside tax increments. According to the report, the city budget adopted on June 21 remains unchanged from the state grab that’s due Aug. 1.

Though cities across the state are swiftly considering similar ordinances, the League of California Cities and the California Redevelopment Association are expected to file a lawsuit against the state arguing that the two bills are unconstitutional. The bills, which were signed last Wednesday, complete the budget package signed Thursday that addresses a deficit once topped at $26.6 billion.

The proposed ordinance is scheduled for City Council approval on July 19.

Other items on the City Council agenda include:

• The first reading of an ordinance to amend the land use designations of two adjacent properties within the South Poway Specific Plan.
• The consideration of a conditional use permit that allows for a 8,587-square-foot dance studio on Danielson Street.

The meeting begins at 7 p.m. inside . See the full agenda here.