FV Sues to Recoup Redevelopment Money

Fountain Valley plans to take the state to court.

The City Council voted to begin legal action against the California Finance Department to keep $14.6 million in property tax revenue that the state says it’s owed because of the dissolution of redevelopment agencies in 2012, the Orange County Register reports.

Officials authorized staff to begin legal action during closed session Monday night and announced the decision afterward.

"We've played by all the rules, and we haven't gotten anywhere with the state," City Manager Ray Kromer said. "The state has denied us at every turn."

Redevelopment agencies, designed to decrease blight in the community and provide affordable housing, were abolished in 2012 because of a state law and court ruling that effectively transferred more than a billion dollars from city redevelopment agencies back into state coffers.

A number of have already filed legal action. 

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