Monday May 10 2010
State raids local redevelopment funds
Roseville forced to pay $2.3 million to help California's state budget
More than $2 million intended for job creation, economic growth and urban revitalization in Roseville is now headed to the state of California. The City of Roseville Redevelopment Agency was forced to turn over $2.3 million Monday to the Placer County Auditor. The payment follows the state’s decision to acquire $2.05 billion in local redevelopment funds as part of its 2009-10 budget. “Taking this funding will stall job creation efforts in Roseville at the worst possible time,” said Mayor Gina Garbolino in a press release. “The money being turned over to fund state obligations was going to be used for local revitalization projects that would have improved our community, created jobs and stimulated our local economy.” Last week, Sacramento Superior Court Judge Lloyd Connelly ruled that local redevelopment agencies abide by the provisions of a bill passed last year as part of the state budget. The legislation permits the state to take redevelopment funds to pay for state obligations. “It’s incredibly narrow-minded of the state legislature to reach into the pockets of local redevelopment agencies, one of the state’s strongest job-creating engines, at a time when job creation and economic development are desperately needed,” Garbolino said. The California Redevelopment Association calls the ruling unconstitutional and is appealing the decision. ~ Sena Christian ---------- The City of Roseville expects the following impacts due to paying $2.3 million to the state of California. Business Retention · Façade and Sign Rebate Program on hold ($75,000 annual allocation) · Commercial Loan Program unfunded (recently assisted start-up in construction of three new businesses with a total value of $3 million) · Delay or removal of key infrastructure improvement projects that support existing and new business Business Attraction · Delay of construction of the Town Square Project ($3 million ) · Delay of construction of Vernon Street utility upgrades ($4 million) · Jeopardy of construction of long-term amenities such as a creek walk, streetscape improvements, outdoor amphitheater Economic Impacts · 180 jobs lost · Construction sector loss of more than $15 million · Economic loss of more than $32 million Source: For a full list of potential impacts, visit the City of Roseville’s website, www.roseville.ca.us.