Politics & Government

City Council Approves Redevelopment Reimbursement Agreement

The city will be refunded for some costs associated with the succession of the now defunct redevelopment agency.

The City Council unanimously approved an agreement that would relieve the city of some of extra labor and administrative costs associated with the winding down of the former redevelopment agency.

“What this essentially does is allow the city to be reimbursed for expenses that are being undertaken by the successor agency,” said Raul Salinas, South Gate’s City Attorney.

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of having South Gate become the successor agency after the California state government eliminated over 400 redevelopment agencies throughout California. The state did this in an attempt to more adequately face its $26 billion deficit.

This was a highly unpopular decision among municipalities, including South Gate, because the funds brought by redevelopment agencies attracted new developers that would help revitalize blighted areas.

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The reimbursement was approved by both the California Department of Finance and the Oversight Committee in charge of overseeing the widening down of the agency by South Gate.

Bryan Cook, South Gate’s Finance Director, said that this was an important agreement, because it permits the city to save some of its general fund money.

“The dissolution of our redevelopment agency is costing the city money from its general fund,” said Cook.  

South Gate will receive approximately $125,000 from the special local property tax fund that was setup by the state of California to help cities address costs associated with the termination of the agency.

“This agreement recognizes those costs and formalizes that agreement,” said Cook.

Cook warns that the city might have to assume some costs in the end despite receiving financial help.

“For [South Gate] there will probably be more cost” admitted Cook, adding that it was too early to say how much. “We are still going through the process”

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