The action is yet another result of a California Supreme Court decision last month that upheld legislation to dismantle redevelopment agencies but struck down a companion bill that would have allowed the agencies to continue operating if they made yearly payments to the state.
With Clearlake not taking on the duties, they will be transferred either to the Lake County Housing Authority or the California Department of Housing and Community Development.
Clearlake’s decision to release the obligations and assets is similar to that made this week by the Board of Supervisors, which elected to release the county redevelopment agency’s housing obligations to the Lake County Housing Authority.
Taking a different approach was the Lakeport City Council, which last week voted to approve a staff recommendation to keep the assets and funds available for local projects, as Lake County News has reported.
Clearlake properties which would be impacted by the release of obligations, according to interim City Administrator Joan Phillipe, include 24 lots the city purchased in 2008 – at a cost of $25,100 per lot – to use for low-income housing.
City Attorney Malathy Subramanian’s report on the topic explained that the city would be responsible for all costs associated with the obligations if it elected to keep them.
Council member Judy Thein asked about the impacts on Clearlake Housing Now, which won a lawsuit against the city more than a decade ago because housing funds had been used to purchase Austin Resort property. Subramanian said the city had followed the terms of the settlement and repaid the loan as it was required to do.
Thein said she didn’t think the city could hold the obligations. “At this point I don’t support taking this on,” she said.
Mayor Joey Luiz called the proposition of the city taking over the responsibilities a “lose-lose,” adding that he didn’t think the city could handle those tasks.
That was an opinion shared by several several community members, who during public comment urged the council not to maintain the obligations.
“It doesn’t seem to me the city can do this,” said Chuck Leonard, who retired from the council at the end of his term in 2010.
Leonard urged them to let the state take over the responsibilities. “They’re the ones who created the problem in the first place.”
County Supervisor Jeff Smith also told the council he believed it would be a detriment to the city to take on the responsibilities going forward.
City resident Jim Jim Scholz said the city had purchased the 24 properties so as not to be penalized for not spending enough on housing projects.
“The council is going to be very busy with the successor duties,” he said, referring to the city’s decision to be the successor agency to the redevelopment agency.
Scholz added that he believed it would be an “impossible task” for the city to deal with the 24 properties in question.
The council voted unanimously to release the obligations, and also to approve a resolution to receive a portion of tax increment revenue.
In other redevelopment-related business, the council appointed Phillipe and Luiz to the Clearlake Redevelopment Agency Successor Agency Board.
At Phillipe’s request, an item relating to adding signatories to city bank and investment fund accounts was continued to a future meeting.
E-mail Elizabeth Larson at
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