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Redevelopment Woes: Chula Vista Files Against California Dept of Finance

Chula Vista's Redevelopment/Successor Agency is not going out without a fight--a legal one. In April, a state-mandated oversight board convened to assume the task of dismantling the city's former redevelopment agency and paying out remaining contractual obligations.

The oversight board began under a cloud of distrust for some residents because Mayor Cheryl Cox selected two members of the seven-member oversight board and her husband, County Supervisor Greg Cox, selected another two.

The Successor Agency had a familiar countenance. Mayor Cox appointed the former director of the redevelopment agency, Eric Crockett, and Janet Kluth who also worked for the agency. Supervisor Cox's appointees, David Watson and Paul Desrochers had served as directors on the Chula Vista Redevelopment Corporation.

On April 27, the city of Chula Vista received a letter from the California Department of Finance. The letter found fault with some items the successor agency was trying to claim as enforceable obligations, including administrative salaries.

Subsequent exchanges between the city and the state appear not to have ameliorated the situation as the May 22 closed session meeting of the Chula Vista city council and Successor Agency to the Redevelopment Agency indicate the city is filing a suit against the state:

"The City Council Authorized the City Attorney to file an action on behalf of the Successor Agency against the State of California (Department of Finance ("DOF") to enjoin DOF from taking Successor Agency ROPS [Recognized Obligation Payment] funds that DOF disapproves and distributing those funds to other taxing agencies."

"Vote: Motion by Council member Ramirez/ Second by Council member Bensoussan; 4-1 with Council member Aguilar opposed.

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Chula Vista's Redevelopment/Successor Agency is not going out without a fight--a legal one. In April, a state-mandated oversight board convened to assume the task of dismantling the city's former redevelopment agency and paying out remaining contractual obligations.

The oversight board began under a cloud of distrust for some residents because Mayor Cheryl Cox selected two members of the seven-member oversight board and her husband, County Supervisor Greg Cox, selected another two.

The Successor Agency had a familiar countenance. Mayor Cox appointed the former director of the redevelopment agency, Eric Crockett, and Janet Kluth who also worked for the agency. Supervisor Cox's appointees, David Watson and Paul Desrochers had served as directors on the Chula Vista Redevelopment Corporation.

On April 27, the city of Chula Vista received a letter from the California Department of Finance. The letter found fault with some items the successor agency was trying to claim as enforceable obligations, including administrative salaries.

Subsequent exchanges between the city and the state appear not to have ameliorated the situation as the May 22 closed session meeting of the Chula Vista city council and Successor Agency to the Redevelopment Agency indicate the city is filing a suit against the state:

"The City Council Authorized the City Attorney to file an action on behalf of the Successor Agency against the State of California (Department of Finance ("DOF") to enjoin DOF from taking Successor Agency ROPS [Recognized Obligation Payment] funds that DOF disapproves and distributing those funds to other taxing agencies."

"Vote: Motion by Council member Ramirez/ Second by Council member Bensoussan; 4-1 with Council member Aguilar opposed.

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Comments
3

Is this a joke piece? The city, which has been crying poor, is suing the state? I can't think of any redevelopment projects that would be worth it.

May 27, 2012

This is just the first of a giant number of lawsuits that will insure that all this Re Dev. money is tied up in the courts for a very long, long time!

May 27, 2012

What outcome can reasonably be expected?

May 29, 2012

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4S Ranch Allied Gardens Alpine Baja Balboa Park Bankers Hill Barrio Logan Bay Ho Bay Park Black Mountain Ranch Blossom Valley Bonita Bonsall Borrego Springs Boulevard Campo Cardiff-by-the-Sea Carlsbad Carmel Mountain Carmel Valley Chollas View Chula Vista City College City Heights Clairemont College Area Coronado CSU San Marcos Cuyamaca College Del Cerro Del Mar Descanso Downtown San Diego Eastlake East Village El Cajon Emerald Hills Encanto Encinitas Escondido Fallbrook Fletcher Hills Golden Hill Grant Hill Grantville Grossmont College Guatay Harbor Island Hillcrest Imperial Beach Imperial Valley Jacumba Jamacha-Lomita Jamul Julian Kearny Mesa Kensington La Jolla Lakeside La Mesa Lemon Grove Leucadia Liberty Station Lincoln Acres Lincoln Park Linda Vista Little Italy Logan Heights Mesa College Midway District MiraCosta College Miramar Miramar College Mira Mesa Mission Beach Mission Hills Mission Valley Mountain View Mount Hope Mount Laguna National City Nestor Normal Heights North Park Oak Park Ocean Beach Oceanside Old Town Otay Mesa Pacific Beach Pala Palomar College Palomar Mountain Paradise Hills Pauma Valley Pine Valley Point Loma Point Loma Nazarene Potrero Poway Rainbow Ramona Rancho Bernardo Rancho Penasquitos Rancho San Diego Rancho Santa Fe Rolando San Carlos San Marcos San Onofre Santa Ysabel Santee San Ysidro Scripps Ranch SDSU Serra Mesa Shelltown Shelter Island Sherman Heights Skyline Solana Beach Sorrento Valley Southcrest South Park Southwestern College Spring Valley Stockton Talmadge Temecula Tierrasanta Tijuana UCSD University City University Heights USD Valencia Park Valley Center Vista Warner Springs
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