The city of Petaluma has lost its fight with the state over money for two infrastructure improvement projects and will pay $8.75 million back, the Press Democrat is reporting.
The funds originally came from the state’s redevelopment agency and were used for improvements Highway 101 interchange on East Washington and Old Redwood Highway, both currently in progress. But after the state phased out redevelopment, it left funding for numerous improvement projects in limbo, prompting the city to go to file a lawsuit to keep the money.
Read Patch’s earlier coverage over the fight to keep redevelopment monies
Find out what's happening in Petalumawith free, real-time updates from Patch.
Petaluma officials argued that both projects had already been obligated and should be funded, but the state disagreed and last month ruled against the city. Another lawsuit to hold on to a separate $7.5 million for the Rainier Avenue crossing is still pending, but City Attorney Eric Danly said that the city is not optimistic about the ruling.
The $8.7 million payment to the state has already been collected in the former redevelopment agency's fund and will not impact the general fund, according to the Press Democrat. Petaluma will also use traffic impact fees from new development projects such as the East Washington and Deer Creek shopping centers as well as funds from bond sales issued in 2007 to pay for the two road improvement projects.
Find out what's happening in Petalumawith free, real-time updates from Patch.
Follow Petaluma Patch on Twitter | Like us on Facebook | Sign up for our daily newsletter | Start a conversation with a blog
Get more local news delivered straight to your inbox. Sign up for free Patch newsletters and alerts.
