The state is trying to take billions from redevelopment agencies across California, including more than 6 million dollars from Redding.
The California Redevelopment Agency, of which Redding is a member, is having none of it. The agency has filed a lawsuit in an effort to keep over $2 billion dollars in redevelopment funds where it say the money belongs, with the local government.
"The state is proposing to take $5.1 million from the Redding Redevelopment Agency for the current fiscal year and $1.06 million for the next fiscal year," says Redevelopment Manager Sue Thompson. "What it will mean for the redevelopment agency and the city is a loss of projects."
The projects do everything from creating affordable housing to widening streets and even beautifying cities. Not to mention creating jobs and spuring economic growth.
"Redevelopment agencies are prime economic development activity promoters and so for the projects that we don't have, those are projects that won't be in the community," says Thompson.
This isn't the first time the state has tried to raid redevelopment funds. In 2008, the state tried to take $350 million in redevelopment funds. The Sacramento Superior Court deemed the act unconstitutional.
"it was ruled unconstitutional last year and we still believe it is unconstitutional," says Thompson.
The California Redevelopment Agency is hoping the court will again rule in its favor. Until the ruling many local redevelopment agencies are in limbo
Over the next two years the state also plans to take $11 million dollars from the Chico Redevelopment Agency.
