A long legal battle over a state law requiring Garden Grove’s redevelopment agency to help pay down the state’s deficit has swung in favor of the state and against the Big Strawberry’s bottom line.
Last week Sacramento Superior Court Judge Lloyd Connelly ruled that local redevelopment agencies had to abide by the terms of ABX4-26, passed last year.
The bill, approved as part of a budget compromise, requires that local agencies send back $2.05 billion to the state. Garden Grove’s share comes to $7.9 million.
“Sacramento is reaching into the pockets of every city’s most important financial engine, local redevelopment agencies, at a time when keeping redevelopment healthy is critical to keeping a city’s head above water,” said Chet Yoshizaki, Garden Grove’s economic development director.
Garden Grove has relied heavily on the redevelopment tool to spur development across the city, especially along Harbor Boulevard.
A stretch of Harbor near Chapman Avenue is a hotel and restaurant district the agency hopes to expand as International West between the city limits of Anaheim and Santa Ana.
The California Redevelopment Agency, which brought the lawsuit seeking to block enforcement of the bill, is planning to appeal Connelly’s ruling.