About $15 million in redevelopment funds intended for capital improvement projects could still remain available for several community development projects, including the Lundigan Community Center and improvements to Johnny Carson Park, despite efforts by the state Legislature to sop up the money.
The Burbank City Council this week voted to keep the money where it is, despite it being under threat by the state's liquidation of local redevelopment agencies and its plans to send the wealth north to Sacramento to help plug a multibillion-dollar state budget gap.
Pending legislation would set aside about $1.4 billion in redevelopment funds statewide for low- and moderate-income housing, and includes a provision that would allow city-agency-type debt incurred for certain projects to remain valid, said Ruth Davidson-Guerra, assistant community development director.
Redevelopment agencies typically issued bonds to raise money for improvements. After blighted land is improved, agencies then use the higher tax valuation and income, called a “tax increment,” to pay back the bond debt.