Under marching orders from the state, San Clemente began dismantling the city's redevelopment agency Tuesday, but local officials adopted a resolution asking the California Legislature to delay the move.

The California Supreme Court recently upheld the state's decision to take back millions in tax revenue from local redevelopment agencies. Redevelopment is designed to finance projects that remove blight and improve specific geographical areas in cities--in San Clemente's case, the Pier Bowl neighborhood.

San Clemente's RDA has replaced sidewalks and street surfaces in the Pier Bowl, as well as helped renovate Casa Romantica, using increased property tax revenue from the redevelopment area.

Because some aspects of disbanding the RDA are still up in the air, the council approved a letter asking state representatives to pass Senate Bill 659, which would temporarily delay the dissolution of RDAs.

"Things are a little bit in a situation of flux right now," said Jake Rahn, San Clemente's financial services manager.

Councilman Jim Dahl pointed out that the city receives its redevelopment revenue from the county in two payments per year, one of which is due within a few days.

It's unclear whether that check will go out to the city or stay with the Orange County Auditor's office, considering the RDA must be dissolved by Feb. 1.

In taking over the administration of the RDA as its "successor agency," the City Council also took on the agency's debts and assets.

The agency owned several properties, including an Avenida Serra parcel designated for an affordable housing project. Now, that land will likely remain vacant for the forseeable future because no RDA money exists to finance the project.

Also, a fund must be set up to pay off debts incurred by the redevelopment agency, such as the money the city still owes for the sidewalk construction at the Pier Bowl.