City Council Tries to Protect More Redevelopment Money

In  a race against both time and  the state legislature, the Pinole City Council took emergency steps Tuesday night in an attempt to keep another $1.2 million from redevelopment funds that it stands to lose.

The council plugged an emergency vote on the agenda for a meeting in anticipation that Gov. Jerry Brown could sign a bill to dissolve redevelopment agencies across California as early as Wednesday.

Council members unanimously approved city staff to move forward with contracts or otherwise protect funding  for $82,650 in community events and $475,000 in capital improvement projects. The events for which the council set aside money are the Kids Creek Fest, the Chamber of Commerce Business Expo, the annual Halloween Carnival, Outdoor Cinema and Summer Sounds, the holiday tree lighting in Fernandez Park and publishing the recreations department's community guide. The capital projects are another phase of improvements to Pinole Creek, landscaping at Collins School and an overhaul of the playground at Canyon Park. The council also moved $635,000 out of the redevelopment agency housing fund, to protect it from state seizure.

Only events and projects that rely on volunteers or for which contracts could be signed by Wednesday were included. Council members added a handful of projects to the list that city staff had hurriedly compiled. Those projects include improvements to ball fields at Collins School and to the vacant lot at Tennent and San Pablo avenues.

The council did not directly approve funding for the programs and projects, but rather it set the money aside, hoping to take it further out of the reach of state government if redevelopment agencies are abolished.

"We should run out as fast as we can and get contracts signed," said Mayor Roy Swearingen.

It's unclear of the council's strategy will work. Brown's proposal would make redevelopment money available to the general funds of cities, and a share of the revenue would go to schools and special districts. Cities across the state have been pushing redevelopment projects forward after Brown announced his plan in January. They are hoping that to take those funds from the state government's reach. There could be legal challenges to Brown's move or the state could bring its own lawsuit to get access to redevelopment funds.

Pinole City Manager Belinda Espinosa told council members that city staff would arrange commitments or even sign contracts for project and program vendors as soon as Wednesday, hoping to preempt Brown's signature on the proposed bill.

In February the city council from ownership of the redevelopment agency to the city itself. That also an attempt to protect sales and property tax revenues generated by the those properties out of reach of the state. Redevelopment is allowed under state law, originally to encourage reconstruction in blighted areas. For decades some critics have argued that cities have abused the law by applying it to broadly. In Pinole, the city uses some redevelopment funds for portions of salaries for time spent on redevelopment business. If redeveloment disappears, the city's general fund would have to make up the difference. Pinole has no general fund reserves.

The council will continue its budget workshop at 5:30 p.m. Wednesday at City Hall, 2131 Pear Street.