LAKE COUNTY — The county”s redevelopment agency (RDA) joins hundreds of others statewide in preparing to shut down on Wednesday.
“I am proud of what the county”s RDA has been able to accomplish in the Northshore communities, and I”m grateful we had an opportunity to do so,” said County Administrator Kelly Cox, who has served as the agency”s executive director since its creation in 2000.
On Dec. 29, the California Supreme Court upheld state lawmakers” ability to abolish city and county RDAs as part of their effort to reduce budget deficits.
Cox said the state plans to reallocate the tax increment previously received by RDAs, which would result in additional funds for other local entities, including schools and fire districts.
Some members of the legislature are reportedly working on proposals to allow key redevelopment efforts, such as eliminating blight, creating jobs and providing low-cost housing, to continue in a new form.
But in the meantime, Wednesday”s closure deadline remains in place and jurisdictions throughout the state are forced to wind down RDA activities.
“There is still much more work to do and it is regrettable that the agency will not be able to complete many of our future plans,” Cox said. “However, I believe there will be opportunities for the county to continue many of the agency”s past efforts.”
The Lake County Board of Supervisors (BOS) discussed the impending dissolution during its regular meeting Tuesday at the Lake County Courthouse.
The supervisors voted 4-0 on many recommended actions related to the RDA. District 3 Supervisor Denise Rushing was absent.
The BOS elected for the County of Lake to serve as the successor agency, which will primarily be in charge of making sure RDA debts are paid and assets disposed.
The sale of RDA properties poses an area of concern, Cox and other county staff members told the BOS.
The successor agency is supposed to make sure assets purchased with tax increment revenues are sold, but two key RDA-owned properties (the Lucerne Hotel and Holiday Harbor Marina) were actually bought using loans from the county general fund, according to Cox.
“I”m confident the hotel will remain in county ownership and we will be able to continue our efforts to convert it into a four-year college,” he said.
In all, the RDA owes the county about $5 million in outstanding loans, but the law that eliminated redevelopment stipulates those debts cannot be repaid, according to Cox.
The BOS approved sending letters to state representatives and the governor asking them to allow the repayment of all debts resulting from county loans to the RDA.
The supervisors also approved an amended Enforceable Obligation Payment Schedule (EOPS), which lists all outstanding RDA debts, including loans and contracts.
The agency”s short- and long-term obligations total about $56.7 million.
An oversight board will direct the successor agency in its effort to ensure RDA debts are paid off.
The board will consist of seven members: three appointed by the BOS, one named by the largest special district in the RDA project area (Northshore Fire Protection District), two selected by the Lake County Office of Education superintendent and one picked by the California Community Colleges chancellor.
The BOS appointed Rushing and RDA staff member Eric Seely to the successor agency oversight board. The supervisors are seeking applicants for the public position on the board.
Additionally, the BOS selected District 4 Supervisor Anthony Farrington to serve on the oversight board for the Lakeport RDA successor agency. District 2 Supervisor Jeff Smith was named to the Clearlake RDA successor agency oversight board.
The supervisors also approved of adjusting budgeted position allocations, allowing Seely and RDA employee Alan Flora to move into different jobs within the county government.
