SAN JOSE (KCBS) — The San Jose Redevelopment Agency owes the county almost $63 million going back three years. Santa Clara County decided to file suit after the San Jose City Council voted unanimously on Tuesday to move some redevelopment agency assets to protect them from the state.

“The final straw was the agency and the city’s actions to try and remove properties and and transfer them over to other agencies so that the agency itself no longer owns them,” said county counsel Miguel Marquez. “That’s problematic for us because we need to collect the $62.9 million that’s owed.”

KCBS’ Mike Colgan Reports:

San Jose Mayor Chuck Reed said the city doesn’t have the money to pay Santa Clara County.

“Over the last three years, the state of California has taken a lot of money from the City of San Jose,” he said. “Last year in May we had to write a check for $62 million. We’re supposed to write a check for $13 million this May, and then the state wants to take the rest of our money.”

Mayor Reed said he understands the county is trying to protect its rights and he added he thinks the city and the county will be able to work something out.

(© 2011 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)


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