State officials ruled that the City of Sacramento did not meet deadlines for financing the K Street revitalization project, including improperly allocating redevelopment funds. The city disagreed and will sue to overturn the decision.
Several months ago, a project to revitalize the long blighted 700 block of K Street in downtown Sacramento was about to start. Unfortunately, a State Department of Finance decision in June regarding unmet financing deadlines meant the project couldn't move forward. That decision was recently upheld, and the city will sue to have the decision reversed.
The $48 million public/private partnership project; which included housing, boutiques, restaurants and a live music hall; required many different funding sources including the handing over of several city-owned properties and other redevelopment subsidies to the developer. One major disputed issue is whether the City properly secured the project's funding plan and appropriately extended the developer agreement.
“The state is not looking for ways to help cities transition from the days of redevelopment to post-redevelopment,” [City Manager John Shirey] said. “They’re looking to penalize and grab money anywhere they can, and it doesn’t matter that the project is in the state capital in the shadow of the Capitol.”
FULL STORY: K Street Project Threatened as State Withholds Redevelopment Money
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