Desert Redevelopment Projects Put On Hold
The State of California is raiding local redevelopment agencies for millions of dollars to help solve the state’s budget fiasco. Last year, lawmakers in Sacramento approved a bill to allow them to do it, and, now, many construction projects in the desert will be postponed, or not done at all.
Doug Evans, La Quinta assistant city manager of development services, said plans to develop the city are now on hold.
“This is a significant issue, and significant affect on all communities when the state comes and takes local dollars away to pay this bills in sacramento,” he said.
The city planned on investing more than $44 million over the next 5 years on redevelopment projects. But, that will no longer happen.
“We’ve got a vacant Circuit City building [and] a vacant Sam’s building,” said Evans. “We’ve got other vacancies. We’re working with people on trying to find users for those buildings, and this will take a tool away from us.”
La Quinta stands to lose more than $28 million in redevelopment funds over the next 2 years.
More than $11 million are being stripped away from Cathedral City.
“We have 23 acres behind the Mary Pickford Theatre [that] we’ve been talking to developers about – that was a huge project,” said Kathey DeRosa, Mayor of Cathedral City.
But, those plans have grinded to a scretching hault, and so are plans to build a Sheraton Hotel along Highway 111.
DeRosa said redevelopment funds are used to build roads, new businesses, “[make] the city look nicer, increasing jobs – the whole positive economic impact that we will not have now because the states take,” she said.
The state is taking these funds away to help back-fill eduction funds, according to DeRosa.
But, “once the state has it, it’s anybody’s guess what they really will do with it,” she explained.
“For 2 years, we are going to slow down on the things that we do to help drive the local economy,” said Evans.
Cities with redevlopment agencies have until Monday afternoon to send their checks to Sacramento.
