A vote on re-authorizing eminent domain power for redevelopment
projects is expected Nov. 15, three weeks before a new city
council
Morgan Hill – In case there was any doubt, officials say a lame-duck city council vote next month that could restore eminent domain powers while providing a $333-million funding boost for redevelopment projects is not being “rushed” because a new city council is being seated Dec. 6.
But, yes, the vote is being intentionally hurried. And it’s because the council is racing the clock to amend its redevelopment strategy before the end of the calendar year. The vote is scheduled for Nov. 15, and state law requires a one-month period before new legislation takes effect. If the council loses the race, new state laws relating to redevelopment agencies would take effect Jan. 1, 2007, which could mean a two-year wait for future redevelopment funding. City officials want the plan adopted before the year’s out so new redevelopment funds arrive 14 months from now, in January 2008, when the current funding cap is met.
“It takes a year, year and a half to amend the plan,” said Joyce Maskell, manager of for Morgan Hill’s business assistance and housing services, the department that oversees redevelopment projects worth millions of dollars. “It’s a very long and complex process, and we wanted to leave plenty of time to let that happen.”
The city’s redevelopment agency was created in 1981 to provide a way to redevelop blighted areas. A map of those areas was created, and property tax revenue that normally goes to other public entities is redirected to the agency. The agency’s bylaws allow for the construction of projects such as the Morgan Hill Community and Cultural Center, the Aquatics Center and the Centennial Recreation Center, but do not allow for money to be spent on maintenance. It has spent about $250 million since it was created, and a plan amendment now seeks to add $333 million in funding over 15 years as the current funding cap is about to be met next year. The city council acts as the agency’s board of directors.
“The objective would be, when the payments stop from the old plan, the new plan kicks in and new payments would start … It would be a continuous cash flow for the agency,” Maskell.
If approved, the new plan would shrink the redevelopment map by 575 acres, requiring the county’s tax assessor to adjust how property taxes from parcels in the deleted area get distributed. Managed by computers, there are some 2,000 different property-tax codes in Santa Clara County.
“Making that change is not a hugely time consuming process, but the fact you have a legal lean date of Jan. 1, 2008, means it would be effective until then,” said Mary Solseng, the assistant county assessor.
Ernie Glover of GRC Consultants, who helped Morgan Hill officials draft the plan amendment, said it’s common for redevelopment plans to be amended this time of year.
“There are new state redevelopment laws that would delay the process,” Glover said, referring to looming changes in how cities will be required to notify state agencies of new redevelopment plans. “In order to get the project done this year, we needed to start the hearing process in November.”
Two public hearings regarding the redevelopment plan will be held at 7pm on Nov. 8 and Nov. 15 in City Hall’s council chambers. Following input from residents, the council may vote on the plan as written or make last-minute changes before approving it.
The most controversial part of the proposed plan is the re-authorization of eminent domain power for redevelopment purposes. The proposed powers could only be used to acquire commercial property along Monterey Road.
Mayoral candidate Dennis Delisle, and city council candidates Marby Lee, Al Tervalon and Chris Borello have said they would not support the authorization of limited eminent use for redevelopment. Councilmember Steve Tate, who’s running against Delisle for mayor, and councilmember Greg Sellers, who is running for reelection, have each expressed positive views on adding eminent domain as a tool for redevelopment – if it’s only used as a last resort in blighted areas.
Tony Burchyns covers Morgan Hill for The Times. Reach him at (408) 779-4106 ext. 201 or
tburchyns@morganhilltimes.
