Council Discusses Redevelopment, Approves Permit for New Dance Studio

Still considering the implications of two California budget trailer bills signed into law last week, city leaders on Tuesday discussed how redevelopment projects would change under the new laws.

In an hour-long meeting, the City Council discussed how a proposed ordinance crafted to comply with Assembly Bills 1X-26 and 1X-27 would affect Poway.

Assistant City Manager Tina White told the Council in a presentation that the proposed ordinance addresses the bills which eliminate redevelopment agencies but allow California cities to continue redevelopment if an annual remittance is paid to the county auditor-controller.

The ordinance—which was presented for a first reading and is scheduled for adoption at the July 19 meeting—would allow the city to pay an estimated $10.3 million this fiscal year and $3.3 million in 2012-2013. The funds for this fiscal year will be pulled from the unallocated redevelopment and housing set-aside tax increments and the actual amounts paid could change.

"There's not a 100 percent certainty that those formulas won't change," White said.

The redirected redevelopment funds are expected to be distributed to local schools.

City leaders added that they believe the bills are "unconstitutional" and said the League of California Cities and the California Redevelopment Association are expected to file a lawsuit.

In other council business:

• Administrative Services Director John French presented the agreed upon two-year contracts with the 166 management/confidential employees and labor unions Teamsters Local 911 and the Poway Firefighters Association. Council approved the contracts.
• Staff presented the Council with the first reading of an ordinance to amend the land use designations from Industrial Park to Light Industrial for two adjacent properties within the South Poway Specific Plan. The ordinance will be presented for approval at the July 19 meeting.
• Council approved a conditional use permit that allows for an 8,587-square foot dance studio on Danielson Street.

The City Council will meet again on .