The Glendale Redevelopment Agency is preparing for war and a worst-case scenario in the wake of passage by state lawmakers of a budget that could eliminate local redevelopment agencies.
Lawmakers voted late Tuesday night to kill all 400-plus redevelopment agencies in California as of Oct. 1 unless they agree to reroute billions of dollars to schools and local governments. The measure was a trailer bill attached to the state budget.
If redevelopment agencies sign up for the alternative, they would be required to give back a combined $1.7 billion in revenue for the 2011-12 budget year, which starts Friday, and $400 million every year thereafter. Agencies that agree to the deal will retain control over some of the tax revenue they receive, while those who don’t will be ordered not to launch any new projects, spending or borrowing.
Glendale City Manager Jim Starbird said he would likely recommend that the Redevelopment Agency go for the alternative, despite losing a large chunk of money that currently funds economic development projects in the city.