State Reduces Sonoma's Redevelopment Payment, Upholds Appeal

The Sonoma Community Development Agency will pay a reduced redevelopment fee, according to a letter delivered this week, informing officials that the state .

Back in August, the Sonoma City Council adopted an ordinance to retain its redevelopment agency, which uses a percentage of property tax for projects to remove blight within the downtown 'project area,' , and to-be-determined yearly fees. The laws are called ABX1 26 and ABX1 27, respectively.

Originally, the Department of Finance estimated Sonoma's initial payment at $1.799,258 million. The City, however, submitted an appeal on grounds that the estimate is based in old data from 2008-2009 and does not take into account the , arguing a $1,420,479 payment is more appropriate.

Now, the city is obligated to pay a reduced fee of $1,589,726, based on an appeal submitted by Assistant City Manager Carol Giovanatto on behalf of the City.

One-half of the first year payment would be due on January 15, 2012 the second half of would be due on May 15, 2012, if the Supreme Court lifts the current stay of the legislation, or finds redevelopment legislation AB1X 26 and AB1X 27 to be valid.

The California Supreme Court will hear oral arguments Nov. 10 for the California Redevelopment Association and the League of California Cities' challenge to the legislation. The proceedings will be broadcast on the California Channel. In addition, the court also made arrangements for overflow seating for arguments in this and the other cases scheduled that week at the Hiram Smith State Office Building Auditorium, 455 Golden Gate Avenue, San Francisco.

The central claim in the lawsuit is that AB 1x 26 and AB 1x 27 violate the California State Constitution, including Proposition 22, which was passed by 61 percent of California voters in November 2010, which prohibits the state from expropriating local funds.