City Council Moves to Protect Redevelopment Funds

Last week Gov. Jerry Brown released a budget that calls for the ending of redevelopment agencies and the seizure of agencies’ assets as a way re-funnel the funds to balance the state’s budget. Many cities, Dixon included, saw it as an attack on their local redevelopment projects.

During a special meeting of the Dixon City Council Monday, the council did something about it by unanimously approving a cooperative agreement between the City of Dixon and the Dixon Redevelopment Agency. The agreement essentially protects Dixon’s existing redevelopment funds, roughly $1 million, from seizure by tying them up into the Core Area Drainage Project.

But the council did not discuss or vote upon another crucial aspect of the governor’s budget – to protect property held by Dixon Redevelopment Agency. The item was not on the agenda and will most likely be discussed at a future meeting.

“Our first step is to protect the cash in the bank,” City Attorney Michael Dean told the council.

Dean also told the council that Monday’s meeting was the first of a three-pronged strategy to protect the redevelopment agency’s assets against the state. According to the budget, the state will honor existing contracts made before March of this year.

The two other aspects of the strategy involve examining how to protect property owned by the agency and figuring out how to keep money – the redevelopment agency sets aside 20 percent of tax revenues for affordable housing – from falling into the hands of the Yolo County Housing Authority, the agency that the Dixon Housing Authority contracts to run a migrant farm worker housing center in Dixon.

“If we don’t take action now to protect ourselves then we are going to be left out and have no recourse whatsoever,” Dixon Mayor Jack Batchelor said.

“It’s perplexing and almost unconscionable … I am a democrat and I voted for Jerry Brown … and I am not happy with this” Councilman Dane Besneatte said.

Several members of the community spoke during Monday’s special meeting, asking the council to not let the state put an end to redevelopment projects in Dixon.

Carol Pruett, the office manager for the Dixon Chamber of Commerce, told the council that without a $7,000 grant that is provided by redevelopment funds, the chamber could not put on the Dixon May Fair Parade that serves to kick off the May festivities.

“It’s the longest-running parade in the state,” Pruett told the council. “It is months in the making, it is for the whole community. Actually, (the Chamber) could not even put on this event (without the grant).”

City Manager Nancy Huston said after the meeting that the grant for the parade could be brought up at a later city council meeting, and that the chamber could ask for funding from the city, not the redevelopment agency, to make the parade happen this year.

“I am concerned about protecting the revenue,” Dixon resident Gary Erwin said. “I am extremely concerned about protecting the land, protecting the Pardi Market site, protecting the train station. No thought was given to protect the land.”

The council acknowledged that it was not voting on anything to protect the land owned by the redevelopment agency, but said it would take up the matter in the very near future.

Downtown Dixon Business Association President Jill Orr also addressed the council Monday night.

“This has kind of been a shock to us at the DBBA and I am mad,” Orr said.

Orr said that the DDBA members volunteer countless hours to hold events in the downtown area, which is considered to be in the redevelopment project area, in order to maintain the small-town atmosphere of the city and bring in revenues.

The Council’s decision Monday would spur the development of the Core Area Drainage Project. The area is located in the older, central portion of the city and is bordered by North Washington Street, H Street, the Union Pacific Railroad tracks and A Street according to a city staff report.

“The flooding in the Core Area is caused because the pipelines installed in the old Dickson Creek are not large enough to adequately pass moderate to large storm events,” the report said. “Additionally, the old railroad trestle remains just with concrete lining around the outer edges. The pipes are now approximately 50+ years old, and showing severe cracking, which could mean catastrophic failures of large sections of pipe in the near future.”

The project will burn up $1.2 million in RDA funds and is set to begin construction this year. The city council also voted to draft a letter to the governor’s office, rather than approving a letter drafted by the League of California Cities, that addresses the city’s concerns.

Monday’s decision in Dixon mirrors city council decisions made throughout the state during the past few days to protect redevelopment funds. A bill could be introduced by state lawmakers as early as today and would take affect on the day of the introduction of the bill.