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Politics & Government

Mayor Glass Appears Before State Budget Subcommittee

With the unfinished business of the East Washington Interchange and other projects in mind, Petaluma's mayor joined others before committee in Sacramento today

 

Yesterday the Assembly Budget Sub Committee 4 met to discuss the Department of Finance’s (DOF) proposed redevelopment trailer bill language. , and made a strong statement against the so-called clawback provisions, through which Petaluma stands to lose millions of dollars that have already been spent on its planning and construction.

During the hearing the chair of the committee, Assembly Member Joan Buchanan (D-San Ramon), expressed the committee’s significant reservations about the bill’s approach and the desire for a more balanced solution.

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Buchanan was especially concerned with the denial of loans or “cooperative agreements” made in good faith between cities and former redevelopment agencies.

“I think we're leaving cities on the hook,” said Assembly Member Buchanan.

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In Mayor Glass' testimony before the committee, he expressed his concerns with the language, in particular the clawback provisions.

Under the proposed trailer bill language construction for the on Highway 101 in Petaluma would be halted. Despite the fact that the project is fully funded and was approved in 2005, the funds are classified as “unencumbered” by DOF. The city stands to lose millions of dollars that have already been spent on its planning and construction.

“We’re in dire straits,” said Mayor Glass. “We followed the rules as we knew them. We can’t deliver money on a claw back that we don’t have. There has got to be a better way.”

Mayor Glass, the League of California Cities and housing advocates urged the committee to consider Speaker John Pérez’s bill, AB 1585, as a responsible alternative to the proposed trailer bill. They called AB 1585 "the most developed clean-up bill to AB 1x 26 pending in the Legislature. The bill contains appropriate policy and technical clarifications to reduce confusion and provide greater direction to successor agencies, oversight boards and successor housing entities."

The bill requires repayment of former loans by cities to former redevelopment agencies, preserves remaining affordable housing funding, preserves asset value, and makes important changes to improve the functioning of successor agencies and avoid bond defaults. AB 1585 is currently stalled in the Senate.

The committee ultimately held the item open for further discussion, and requested further information from DOF on enforceable obligations including process and the number of projects denied and approved and asked witnesses to provide specific information about flaws in the bill. The committee will likely take this issue back up next week. An updated draft of the trailer bill language which was recently released by DOF.

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