STOCKTON, CA - Several revitalization projects and new business startups sit in limbo as Stockton's Redevelopment Agency prepares for dissolution.
Two bills are in front of Gov. Jerry Brown.
The first completely dissolves all Redevelopment Agencies in the state, the second allows for cities to voluntarily pay to keep the programs operating; in Stockton's case, that's about $9 million for 2011 and an additional $1.9 million per year.
"One might call it extorsion; it is," Stockton's deputy city manager Michael Locke said.
The projects now in limbo: a Stockton Unified School District charter school designed for health training provided by a private business, an affordable housing complex by Visionary Homes, and a mixed-use complex to be built on Webber Avenue with a letter of intent already provided by the private contractor.
According to Locke, the city properly used Redevelopment funds over the years by implementing affordable housing, cleaning up water and soil toxins, and repairing roads to rural communities.
Stockton is also facing its own budget deficit and declining home values further reduce the city's revenue from property taxes.
"There is no excess cash to move around, so the city is not in a position to be the sponsoring community to pay $9 million in extorsion funds," Locke said.
Stockton's Redevelopment Agency was established in 1955. It has identified areas in need of redevelopment due to blight, lack of affordable housing, or economic distress.
The Redevelopment Agency helped provide initial funding, or secured grants for major downtown projects like the ball park, arena, and the City Center cinema complex.
"The redevelopment funds many times provide matching dollars that would not allow us to complete the projects otherwise," Stockton Vice Mayor Kathy Miller said.
Miller said the redevelopment agency was an effective public-private partnership for years.
"Because of the revitalization that occurred downtown, the B&M building is now privately purchased from the Redevelopment Agency," Miller said.
Miller said the city council is looking at revising it's fees and permits in order to help attract private companies to the city on its own, but the deputy city manager said a lot of investment needs to happen in Stockton to improve it's economy without government intervention.
"It's going to require a major infusion of private capitol into our community if we're going to overcome this recession," Locke said.
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