Staff Asks For City To Be Successor to Newark Redevelopment Agency

The City Council will vote Thursday night on whether the city of Newark will serve as the replacement agency to the Newark Redevelopment Agency, which must be dismantled due to a California Supreme Court ruling made on Dec. 29.

The high court justices rule in favor throughout the state.

The justices also struck down a second law that would have enabled the agencies to come back into existence if they agreed to contribute $400 million annually through the Voluntary Alternative Redevelopment Program.

According to the council’s agenda packet, city staff is recommending the council approve a resolution that would make the city of Newark the successor agency to its former redevelopment agency.

If the council chooses otherwise, it means the next taxing agency that submits a resolution nominating itself to replace the Newark Redevelopment Agency would be allowed.

Also as a result of the redevelopment agencies dissolution, city staff is urging the council to adopt an urgency ordinance that would repeal a city regulation that allowed Newark Motors Inc. to be granted a sales tax rebate through the Newark Redevelopment Agency to support property acquisition for new car dealerships in town.

The disbandment of redevelopment agencies allows the state to seize $1.7 billion in property tax revenue to help close the state’s budget gap, as proposed in Gov. Jerry Brown’s state budget plan passed in June.

For more information on redevelopment, click here.

Also on the agenda for Thursday’s council meeting:

• Council will consider a text amendment to its zoning code that would prohibit “administrative, financial, professional and real estate offices” to be established in the Regional Commercial (CR) Zoning District and instead move it to a list of conditional uses in Commercial Districts.
• Council will take a formal vote in moving its special meeting to interview City Council candidates from Jan. 19 to Jan. 30.
• Council will vote on an amendment to its Retirement Health Savings Plan that would demand “executive team employees” to make higher contributions to their future medical costs.

The council will meet at 7:30 p.m. Thursday at City Hall, 37101 Newark Blvd. See the attached PDF or click here to read the council’s full agenda.