Redwood City joins RDA spending spree

"With the status of redevelopment agencies changing on an almost a daily basis, and not knowing what the state government will come after next, we felt that it was best to transfer properties to the city at this time," said Councilman Ian Bain.

State leaders have yet to approve Gov. Jerry Brown's dissolution proposal -- although a full legislative vote is hoped for this week -- and questions are flying about the legalities of both the state eliminating them and cities spending the money before that happens. Until decisions are concrete, however, city officials are acting as though the takeaway is a done deal and the game of what some have called keep away is legitimate.

City officials and staff held off initially because they needed time to thoroughly analyze the complex possibilities, including both the benefits and risks, said Finance Manager Brian Ponty.

"At the end of the day, we believe that this was the best course of action to pursue at this time," Ponty wrote in an e-mail.

The council and RDA's plan included the money shift and transferring parcels on Bradford, Main, Lathrop and Heller streets. The property at 1012 Main St. is library parking; the others are vacant and the Lathrop parcel includes a creek culvert.

The transfer lets the city hold the property for redevelopment, future development or sale for redevelopment. The city could also assign it to a nonprofit economic development corporation or housing authority, Interim City Manager Bob Bell explained in a report to the City Council.

The transferred money will go to projects like El Camino Real improvements and parking facilities. The Depot Circle transit hub and marina area planning study are also on the list.

Although the city acted to protect its assets, the council on Tuesday sent a letter asking that they won't need to follow through.

In the letter sent to Assemblyman Rich Gordon, D-Menlo Park, and state Sen. Joe Simitian, D-Palo Alto, Mayor Jeff Ira acknowledged the state's financial bind while asking that it not be solved on the back of cities.

"We have no misconceptions that the state is facing one of its toughest budget proposals in history ... However it is well past time that the state faces the consequences of its years of gimmicks and temporary budget fixes," Ira wrote.

Taking local funding is "imprudent, unconstitutional and in violation of the public's will," he wrote.

Other Peninsula cities have sent similar letters and also taken comparable action. South San Francisco approved a $58 million package, San Mateo approved $34.2 million, San Bruno signed off on more than $100 million and San Carlos had a $19.2 million list.

In calling for Brown and the state not to act, Ira pointed to the city's previous redevelopment successes. Courthouse Square, for instance, draws tens of thousands of visitors annually and generated an estimated $3 million in economic activity last year alone.

Michelle Durand can be reached by e-mail: michelle@smdailyjournal.com or by phone: (650) 344-5200 ext. 102.