Homeowner Loans Likely To Disappear In Redevelopment Cutback

The City Council held a workshop Tuesday night to continue dissolving its old  redevelopment agency.

No final decisions were made but council members may embrace a staff proposal to trim $1.47 million in former redevelopment-funded programs to $481,000.

The biggest losers in the plan being given most consideration would be two loan assistance progams that used to help 19 borrowers per year at the cost of about $642,000. Both would be eliminated.

But the city hopes to continue awarding low-income homeowners and fixed-income seniors a total of 25 grants averaging $4,000 for rehab projects.

Most other programs or groups supported by redevelopment funds are likely to experience cuts, including the Chamber of Commerce which could see $45,000 in support pared back to $10,000.

So far exempted from cuts under the preferred proposal would be $180,000 to improve commercial and industrial facades and support the city's efforts on behalf of the .

Also at Tuesday night's meeting, Mayor Stephen Cassidy nominated two members to a new seven-person body that will oversee the sale of redevelopment agency assets and the payment of its obligations.

Cassidy's appointees are former city manager John Jermanis and current community development director Luke Sims.

Five other public entities that will share in any excess tax revenues from former redevelopment projects will also appoint members to this oversight body.

The entities include K-12 schools and community colleges. None of those appointments have been made yet.

Once this oversight body comes together, it will play a role in what happens with former redevelopment assets like the old Albertson's property on East 14th Street, proposed site of developer David Irmer's .

In the past the redevelopment agency could have made a deal with the developer to sell the property at a price that would .

Now, according to Jermanis, the former city manager and oversight board appointee, the new seven-member body would add its own scrutiny.

"Is the city in fact getting fair value for the sale of the property and will the community get a value," he said, articulating the sort of question the oversight board could ask.

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