City Asks State to Reconsider Rejection of Redevelopment Bonds

 

The City of Sonoma has filed a formal request for reconsideration with California State Department of Finance.

The letter, submitted Tuesday, asks the Department of Finance to reconsider the rejection of $15,151,167 in, bonded as part of the city's now dissolved redevelopment program.

“The projects being challenged by the State are infrastructure projects benefiting everyone - from schoolchildren to seniors - and impact the quality of life here in the Valley," said city manager Linda Kelly.

According to a statement released by the city Thursday, the following projects and funds are at risk if the state does not reconsider:

• Local matching funds for Chase Street Bridge repair and upgrade. If the City does not provide a local match, the City may lose a $1.4 million Federal grant.
• Local matching funds for Leveroni and Broadway turn lane and signal improvements. The City may lose a Caltrans grant in the amount of $133,870 if a local match is not provided.
• Local matching funds for Depot Park Americans with Disabilities Act mandated upgrades to walkways and infrastructure. If the City does not provide a local match, the City may lose a $70,000 Community Development Block Grant.
• Sonoma Valley Regional Library renovation project.
• Pavement and roadway projects including street rehabilitation and asphalt pavement overlay for several City streets.
• Numerous storm drain improvements planned to prevent localized flood damage.
• The DOF’s letters also disallow certain administrative costs incurred during the six month period which are directly attributable to the dissolution of redevelopment and the implementation of AB1X26, the State Assembly bill which mandated the dissolution of redevelopment agencies statewide by February 1, 2012.

Currently, the Department of Finance is challenging $1,204,049 of the funds – which includes entire projects and portions of projects, where expenditures were made or planed to be made between Jan. 1 and June 30.

"We remain committed to making our case to the state to let these projects be completed as our final wind-down projects of redevelopment,” said Kelly.