Pay Millions To Keep Redevelopment Agency?

As Loma Linda officials wait for the outcome of a pending lawsuit against the state, they are looking ahead at what they must do now that two bills requiring the dissolution of the redevelopment agencies have passed.

At tonight’s City Council meeting, city officials will discuss participating in a voluntary development program that replaces city redevelopment agencies. AB 1x26 eliminates the agencies in their current form, and AB 1x27 allows a city to keep their RDA, but will be required to pay into a fund that would used for the state’s educational system, officials said.

The bills were passed as part of the state budget in June. Loma Linda’s staff is recommending the city support a non-binding resolution that states their intent to participate in the alternate state program.

Officials say it will cost Loma Linda an estimated $2.839 million a year to participate in the new program.

The discussion comes about a week after The League of California Cities, the California Redevelopment Association and the cities of San Jose and Union City announced they had filed a petition with the California Supreme Court challenging the constitutionality of the two bills.

Loma Linda city officials threw their support behind the suit before it was even filed, announcing they would take an active role. While the suit makes its way through the legal system, Loma Linda officials say are preparing for the outcome, whatever it may be.

Passing the non-binding resolution will allow them time to examine the impact of the bills on the city, officials said.

AB 1x26 and AB 1x27 went into affect immediately after Governor Jerry Brown signed the budget. City RDA’s are no longer allowed to enter into contracts until they formally adopt an ordinance to participate in the state program.