SANTA PAULA : County May Sue If City OKs Project

The Santa Paula City Council is expected Monday to approve a 1,100-acre redevelopment project despite indications that the county will sue the city over alleged problems with the plan.

“Unless the City Council does something unexpected, like pay attention to the complaints we made . . . the county will, in all probability, bring a lawsuit against Santa Paula,” said County Counsel Daniel J. Murphy.

Murphy said the city’s environmental report on the project does not adequately address the problem of flood control. He said most of the project area, which encompasses the southern third of the city, is within a flood plain.

City officials have said that the report on the $250-million plan to improve public walkways, flood-control channels and underground utility lines is complete.

Murphy also said that the plan will place an increased burden on the county because it will induce population growth, which will require the county to provide additional public services. The city is required by law to prove that the effects of the project will not place a drastic financial burden on the county.

The council has issued a statement saying that officials have not demonstrated that the project would be costly to the county.

Under redevelopment, the city’s property tax base is frozen, so that taxing agencies such as the county no longer automatically receive such revenue when property values increase. However, the city may negotiate a “pass-through” agreement with the county, in which the county would receive an agreed-upon percentage of any revenue realized by an increase in property taxes.