Court clears way for state to take funds from California cities | mydesert.com | The Desert Sun

Court clears way for state to take funds from California cities | mydesert.com | The Desert Sun

Court clears way for state to take funds from California cities

Valley cities losing total $95 million in redevelopment dollars, due Monday

K KAUFMANN • THE DESERT SUN • MAY 8, 2010

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Cities across the Coachella Valley will be writing checks to the state for millions of dollars Monday after an appeals court turned back a last-minute effort to delay the grab of redevelopment funds.

The Third District Court of Appeals on Friday denied a request from the California Redevelopment Association for a temporary stay on the transfer of $2.05 billion in redevelopment funds from cities to the state over the next two years.

The California Legislature authorized the raid on redevelopment funds in a law, Assembly Bill X4-26, passed last year as part of its efforts to close an $18.6 billion hole in the state budget.

The total bite on valley cities will be about $95 million this year — the money due Monday, and another $19.5 million due May 10, 2011 — according to figures from the association.

Palm Desert will take the biggest hit this year, turning over $25 million to the state, followed by La Quinta, which will send $23.5 million.

In Desert Hot Springs, City Manager Rick Daniels said the $3.4 million his city will send to the state means “rehabilitation of dilapidated and blighted housing will now be delayed. It's embarrassing, and I'm just angry about the whole thing.”

The association had sued to overturn the law, but lost its case Tuesday when Sacramento Superior Court