Legal News

City of Fullerton and Orange County at odds over using funds to redevelop "blighted" areas

By Richard Binder

The city of Fullerton wanted to use tax increment funds to revitalize 1,165 acres in the southwest and southeast sections with public improvements, affordable housing funds and small business loans.  But the county and Friends for Fullerton's Future, a local activist group, opposed the plan on the grounds that money for county services would be otherwise diverted to the tune of $25 million.

To avoid a lawsuit, Fullerton has proposed a settlement that would pay Orange County $4 million from general funds.  Rent would be paid to the county in agreed payments and the city would sublease the property back to the county for $1 per year. Redevelopment Agency Director Rob Zur Schmiede said that money would be applied to a county-designated project such as the aging county animal shelter that would benefit Fullerton residents.

The county Board of Supervisors will decide on the proposal at its September 22 meeting.

Full story at OCRegister.com.

Full post as published by Legal Pad | LA on September 17, 2009 (boomark / email).