Groups representing California redevelopment agencies and cities are suing the state to halt a change that would eliminate the agencies and funnel an estimated $1.7 billion to local services.
The San Francisco Board of Supervisors gave initial approval Tuesday to a $1.5 billion plan to transform Treasure Island.
The proposal would add up to 8,000 residential units, up to 140,000 square feet of commercial space and as much as 100,000 square feet of new office space to the island.
An interview with San Jose Mayor Chuck Reed on the problems facing the city, including pension reform, a growing budget deficit and possible layoffs and cuts to city departments.
The San Jose Redevelopment Agency owes the county almost $63 million going back three years.
With the state poised to abolish redevelopment agencies, the city took urgent steps to protect the proposed 49ers stadium and dozens of other projects.
An audit by the state controller’s office has found that redevelopment agencies in California do not have a way to show how well they are fighting blight or creating jobs.
Tough budget times are ahead for Santa Clara County officials as they are facing almost an $80 million revenue shortfall.
Much of the $5 billion a year in property taxes that cash-strapped California sends to cities across the state to promote redevelopment isn’t used for that purpose.
San Jose has become the latest city to speed through redevelopment projects, as Governor Jerry Brown threatens to use that money to help fill California’s massive budget deficit.