Thursday, December 29, 2011

Supreme Court Delivers Worst-Case Scenario for Suisun City Redevelopment

SUISUN CITY — When the California Supreme Court upheld on Thursday the dissolution of Redevelopment Agencies and struck down a voluntary program to keep them alive, it delivered the worst-case scenario for the Suisun City Redevelopment Agency.

The elimination of the Redevelopment Agency will require cutting the current City budget by $1.4 million, which the City Council has discussed in theory for several months. Because the option to pay annually to retain the Redevelopment Agency was eliminated, Suisun City stands to lose approximately $13 million in additional cash and assets.

“We’re still digesting the court’s decision,” said City Manager Suzanne Bragdon. “But from reading the basic background provided by the court, it’s clear that those not at the local level – people not on the ground – miss the whole concept that redevelopment provides tools to make new development and new projects happen that wouldn’t happen by private investment alone.

"Instead, they describe redevelopment as a big shell game that allows cities to grab property taxes from other entities, rather than a tool to grow the overall property tax pool – not to mention the creation of other tax revenues and jobs – which benefits everyone, including schools and the State," Bragdon said. "This decision has severely limited future business development in a community like Suisun City.”

>> Read about more local impacts and link to the court opinion

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