Budget Would Cost Downtown Sac Redevelopment Millions
KXJZ file photo/Ben Adler
One of the ways lawmakers balanced the budget was with a one-time raid of local redevelopment funds. What does that means for Downtown Sacramento?
Wednesday, September 17, 2008
K Street. The Westfield Mall. Township 9. The Docks. Those are some of the projects that could be affected by the budget plan currently before Governor Schwarzenegger. Lisa Bates is with the Sacramento Housing and Redevelopment Agency.
Bates: “We will see about $4 million that we would normally invest back into this community going to the state to solve the budget problem.”
And while the state says it’ll only raid redevelopment funds this year – and not in the future – Bates is skeptical. After all, she says, they’ve done it before. Now, Bates worries her agency might not be able to get the bonds it needs for future projects.
Bates: “The bond market may choose to say, well, since there’s this initial take on redevelopment dollars and the uncertainty in the future, we won’t lend you as much money.”
Still, there is some good news for local governments: Unlike in years past, this budget will not raid city and county coffers.