Galt Mayor Marylou Powers will sign a letter aimed at recouping money lost when the state of California dissolved redevelopment agencies in late 2011.
The authorization was made at Tuesday’s regular Galt City Council meeting. Councilman Curt Campion participated via teleconference from Hawaii.
The letter supports proposed legislation that would allow agencies to spend existing redevelopment bond proceeds, according to City Manager Jason Behrmann.
That totals about $6.7 million for Galt.
“The legislative process is the only way we’re going to be able to use that money,” Campion said.
Meanwhile, the oversight board to the Redevelopment Successor Agency met last week and approved the 2013-14 Recognized Obligation Payment Schedule and the transfer of housing assets to the Housing Successor Agency, which is the city, according to Behrmann.
This means that the city will take over the housing functions of the former redevelopment agency.
“Unfortunately, there is no money that goes with this,” Behrmann said.
However, he added, there are several outstanding housing loans that are payable to the city, the biggest of which is for the Galt Place senior housing complex.
“As we receive repayment for these loans, there will be money available to offer housing programs in the future,” Behrmann said.
In December 2011, the Supreme Court determined that the state Legislature was within its rights to dissolve redevelopment agencies to divert taxpayer funds to schools and other agencies. Several months later, the City of Galt declared itself a “successor” to the redevelopment agency.
At the time, Behrmann said he expected the city would be allowed to finish redevelopment projects already in the pipe, since the money had already been collected.
By using a combination of private and public money, Galt has improved its downtown core with new buildings and landscape. Both Brewsters Bar and Grill and Galt Place are the results of successful redevelopment agency efforts.
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