State Budget Will Likely Eviscerate San Clemente Redevelopment Agency

City officials figure the new state budget will eviscerate the city’s redevelopment agency, forcing it to pay out more than 40 percent of its revenue back to the state.

Though the California Department of Finance hasn’t released specific numbers, city staffers say in a report to the council that they expect a loss of $970,000 to the redevelopment agency this year, and subsequent yearly losses of $230,000 to $250,000.

That’s a healthy chunk from a pot of money that draws $2.3 million in revenue each year.

Redevelopment agencies in cities allow the city government to condemn blighted areas and structures, and then rebuild the area in a planned-out way that officials figure will be more economically viable and aesthetically pleasing. Cities often partner with developers to make this happen.

The agency, in turn, gets tax revenue from businesses in the designated redevelopment area—the Pier Bowl, in San Clemente’s case.

Planned projects, including pier maintenance and infrastructure improvements, may have to be put on hold. The agency will still have to keep paying off its bond debt that it incurred on past projects.

The council will have to take action Tuesday at its meeting to retain its ability to have a functioning redevelopment agency, though the city will still have to drastically amend its 2011-12 budget to accommodate the devastating cuts.

, “We’re in deep trouble.”

The reader should note, however, several lawsuits to stop the budget's redevelopment provision are in the works.

The council meeting will be Tuesday night at 6 p.m. in the council chambers, 100 Ave. Presidio.