The San Francisco Redevelopment Agency must contribute $28.8 million to the state, part of Gov. Arnold Schwarzenegger’s plan to require the state’s redevelopment agencies to contribute a total of $2 billion to help balance California’s budget.
The state won a court case Tuesday filed in opposition to Schwarzenegger’s plan. The ruling will be appealed.
The Redevelopment Agency works to create new housing and jobs in Bayview-Hunters Point and nearby neighborhoods along the Sixth Street corridor south of Market Street, around the Transbay Transit Terminal and in other parts of The City.
Instead of digging the funds out of its operating budget, which is already declining, the agency plans to borrow the money and repay its debtors, who would purchase bonds, using expected increases in property taxes from some of its project areas.
The approach protects this year’s operating budget, but it reduces the agency’s budget in future years.
City and agency officials had preapproved the plan to borrow the funds to prepare in case California prevailed in the lawsuit.