More Layoffs at San Jose Redevelopment Agency

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downtown San Jose skyline

An aerial view of the downtown San Jose skyline. (Helene Labriet-Gross/AFP/Getty Images)

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SAN JOSE (KCBS) – The city’s shrunken redevelopment agency has laid off another 14 employees because of state funding cuts, Mayor Chuck Reed said Thursday.

“The state has taken $62 million this year and another $13 million this next year in May. So it’s $75 million the state is taking out of redevelopment agency funding,” Reed said.

Reed lamented cuts to an agency responsible for much of the city’s economic development. Before the recession, San Jose had one of the largest redevelopment agency’s in the state.

This year’s layoffs affect 20 percent of the San Jose Redevelopment Agency staff.  62 of the agency’s workers were let go in 2009.

Reed said the slimmed down department’s work to revitalize struggling neighborhoods and attract new businesses would now focus on big ticket projects such as a proposed downtown baseball park.

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