"This is great news for Glendale," City Manager Scott Ochoa said in a statement, adding that the decision will allow Glendale "to take advantage of constructing important public projects with our bond funds."
Glendale's former redevelopment agency had used incrementally higher property taxes from new developments to help fund the Americana at Brand, Disney's Creative Campus and other projects.
But that money source dried up last year when state lawmakers killed redevelopment, shifting the tax revenue to the state to close a multi-billion-dollar budget gap. Part of the money collected by the state from closing redevelopment agencies was meant to cover school funding gaps.
Since then, city officials have been jumping through hoops, completing an audit of the former agency's finances, adjusting construction plans, making payments to the state and submitting requests to cover former redevelopment obligations, such as contracts, employee salaries and bond interest payments.
"Countless hours of work have gone into securing this approval," Mayor Dave Weaver said in a statement. "The fogginess associated with the redevelopment dissolution process is beginning to clear up."
But there is much to be done before construction can begin on the $10 million library revamp and other former redevelopment projects, such as a pedestrian paseo by the planned Museum of Neon Art.
There are also limitations on how much of the $66 million loan the city made to its defunct redevelopment agency can be paid each year. Before redevelopment ended, the city had been paying itself back between $6 million and $7 million annually, according to a city finance report. Officials expect to get back roughly $1.7 million in fiscal year 2014-15 and about $7 million the next year.
About 20% of the money the city does get back from the loan repayments must pay for affordable housing.
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