Last week, Los Angeles took steps to protect nearly $1 Billion in RDA funds from the state. Now it’s everyone else’s turn. Redevelopment agencies all over California are scrambling to come up with strategies to keep themselves intact or insulate themselves from the inevitable raid or shutdown. In Escondido, the RDA is debating whether or not to raise bonds for its $50 million ballpark project early. The Merc’s John Woolfork reports that tomorrow, San Jose has scheduled an emergency meeting of its RDA to figure out its next steps. There’s only one major agenda item:

1.1 In response to the Governor’s proposed State budget package and proposals for FY 2011-12, which include recommending the elimination of redevelopment agencies “to realign the delivery of state services to counties and local governments” and eliminate a projected State deficit of $25.4 billion the City Manager and Agency Executive Director recommend the following actions intended to provide flexibility to fund the Agency’s existing debt obligation and to reaffirm the Agency’s obligations and appropriation of funding for its previously approved FY 2010-11 Operating Budget, its Capital Improvement Plan and other contractual obligations.

Recommendation:

(a) City Council and Agency Board by motion, makes a good faith, reasonable determination by a 2/3 vote of the body that an issue has arisen that must be resolved in less than 4 days. (8 votes required)

(b) Approval of a Cooperation Agreement between the City of San Jose and the San Jose Redevelopment Agency relating to funding certain Redevelopment Agency capital improvements, public improvements and obligations located within currently designated redevelopment project areas.

(c) Adoption of resolutions by the Agency Board, the San Jose Financing Authority Board and the City Council authorizing the Agency Executive Director, the City Manager, the Executive Director of the Financing Authority and the Housing Department Director to negotiate and execute agreements necessary to protect and secure existing obligations and to acquire, construct, develop and implement projects specified in the Agency and City’s approved capital improvement plan and City’s 5 year affordable housing plan as specified herein.

(d) Adoption of a resolution by the City Council making certain findings and determinations as may be necessary.

(e) Authorize the Director of Housing to negotiate and execute agreements in the amount of $1.43 million of Low- and Moderate-Income Housing funds (“20% funds”) to Eden Housing or its affiliate for the Ford & Monterey Special Needs Housing Project (“Project”) in order to meet federal Stimulus (“NSP2”) timeframes; and make a finding that the use of 20% Low- and Moderate-Income Housing Funds outside a redevelopment project area for the affordable housing to be provided by the Project and its Phase II benefits the Agency’s redevelopment project areas.

The RDA Board/City Council is giving themselves until next week to figure all of this stuff out. This includes:

• $180 million in annual tax increment revenue, which could go away in a few months
• $54 million from additional sources for the next two fiscal years
• $200 million in land assets, not including the five properties being sold to cover the remaining Diridon ballpark site acquisition
• $58 million in cash available at the moment
• $58 million in planned capital expenditures
• $200 million in annual debt service
• $53 million in additional payments and operating costs for this year and the next two fiscal years

I’ll be at the meeting, which is scheduled for 3:30 4 PM at City Hall Council Chambers. It should be messy. I’ll have the audio recorder handy.

Also from Woolfork’s article (via the Argus’ Matthew Artz): Fremont approved $140 million in redevelopment bonds, though with so many cities looking to raise money and the TIF sources being threatened, there’s a legitimate question as to who will buy them with all of the uncertainty.