City of Dixon Becomes RDA Successor Agency

Last night, the Dixon City Council agreed to become the successor agency in charge of dismantling its redevelopment agency, continue RDA's affordable housing function

Dixon’s Redevelopment Agency may have to be gone by Feb. 1, 2012, but the wheeling-and-dealing of Dixon's assets won’t be done by the state or some outside entity.

Last night during a regular meeting of the Dixon City Council the council agreed to become the successor agency that’s in charge of dismantling its redevelopment agency and liquidating its assets. The council also elected to take charge of the affordable housing element handled by its RDA.

The action comes in the wake of a Supreme Court ruling that upheld AB XI 26 (the Redevelopment Dissolution Bill) and struck down AB XI 27 (Voluntary Payment Bill), that would allow have allowed RDAs to continue existing, albeit in a limited capacity.

City Attorney Stephen Muzio told the council that they had the option of not becoming the successor agency, in which case it would have to submit a resolution to the county’s Auditor-Controller’s office by Jan. 13.

Similarly, Muzio told the council that should they elect to not continue its RDA affordable housing function, it would have to transfer the function to its housing authority. But Mayor Jack Batchelor pointed out that Yolo County is handling Dixon’s housing authority and would become the successor agency in charge shoudl the city pass.

“Yolo can do whatever they want,” Batchelor said, explaining why the City of Dixon would want to continue the affordable housing function. “By taking no action, we become the successor agency.”

“I think we would possibly be in a much better position if we remain the successor agency,” Councilman Thom Bogue said.

In becoming the successor agency, the City of Dixon will need to review the Enforceable Obligation Payment (EOPS) , modify it if needed, and re-adopt it. An oversight board – comprised of members from the City of Dixon, Solano County, Dixon Unified School District and other entities – would then review and approve the payment to the state.

Down the road, the city would adopt a Recognized Obligation Payment (ROPS), which would be a permanent schedule of payments that replaces the interim EOPS. Solano’s Auditor-Controller would then allocate a property tax increment to the city to pay its ROPS.

Under the dismantling of its RDA, Dixon would have to liquidate RDA-owned properties, including the Pardi Market site and the old Ace Hardware site (West A and North Jackson streets). The City would also have to allocate roughly $1 million that it dedicated into its Core Area Drainage Project.

Several questions however, have yet to be answered for the council. Councilman Michael Ceremello, for example, asked if the city could purchase the RDA-owned properties at fair market value. The council posed this any other questions to Muzio that will be brought up at a later meeting.

The dismantling of RDAs will have dire consequences throughout the state – with some cities bracing for layoffs and other actions – but the move that’s designed to help the state balance its budget will not doom Dixon, interim City Manager and Dixon Police Chief Jon Cox said.

Cox said the impact will be felt by the halting of projects in town such as the development of the Pardi Market site and the Core Area Drainage Projects, projects that the city would need to complete on its own without the benefit of RDA funds. Cox said he does not anticipate any layoffs in Dixon, and said that the county will be hosting a meeting for all Solano County RDAs next week.

Dixon Patch will continue to cover this story as it unfolds.




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