Politics & Government

Fountain Valley Council Endorses Bill Aimed at Extending RDA Deadline

In a special meeting Tuesday afternoon, the council also voted to transfer the assets of its soon-to-be-dissolved RDA to the city's housing authority.

During a special meeting Tuesday afternoon, the Fountain Valley City Council voted 4-1 to sign a letter in support of SB 659, a bill that would extend the statewide deadline for cities to close their redevelopment districts from Feb. 1 to April 15.

"Any city that takes a position that we not take more time on this is blind-siding themselves," council member Larry Crandal said.

Gov. Jerry Brown sought to eliminate redevelopment agencies in an attempt to close the state's revenue shortfalls. His budget bills passed last year would have allowed cities to opt into voluntary RDA programs by remitting tax money to the state, but the that such a plan would be unconstitutional. In a double-whammy to proponents of redevelopment districts, the court also ruled that the state had the right to eliminate RDAs altogether.

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Mayor John Collins explained that Fountain Valley has about $37 million in RDA assets, and that the city had received about $2 million a year in tax revenue from companies that came to Fountain Valley as part of its redevelopment district. With redevelopment now likely a thing of the past, the city must make sure its loose ends are tied up.

"People are owed money and may not get paid," Collins said. "I feel very strongly that we recommend that the legislature postpone [RDA closure]."

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Council member Mark McCurdy, consistent with his previous stance against redevelopment money, was the lone member of the council to vote against sending the letter to Sacramento.

"I'm in favor of the free market and limited government, and this doesn't go to either of those," he said. "Fountain Valley's done very well with RDAs, but statewide, it's been abused. I don't want to give any chance to bring the monster back."

As part of the RDA closure process, the council also voted to transfer all of its redevelopment assets to the city's newly created housing authority, which the council created last year in anticipation that redevelopment districts might be eliminated.


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