SANTA PAULA : County Sues to Halt Redevelopment Plan

Ventura County has filed a suit against the city of Santa Paula and that city’s Redevelopment Agency, saying the agency’s approval July 16 of a redevelopment plan is illegal.

The suit, filed Friday, says the city’s general plan, upon which the project is based, is inadequate and does not meet government codes.

In addition, Santa Paula has not proved that the formation of the Redevelopment Agency will not financially hurt the county. “The $240-million project will cost us more than $80 million over the 40 years it is planned to run,” said County Counsel Daniel F. Murphy.

Santa Paula City Councilman Les Maland said, however, that the county ultimately would benefit from the project, because property values would rise, thereby generating more taxes.

Under redevelopment, the city’s property tax base is frozen so taxing agencies, such as the county, no longer automatically receive revenue from a rise in property taxes.

Such taxing bodies must come to an agreement, called a pass-through, with the Redevelopment Agency on the percentage of the increment they will receive. Because of the size of the area, which at 30% of the city far exceeds the 8% that the county allows for redevelopment projects, the county says it is entitled to a 100% pass-through.

The Redevelopment Agency’s environmental impact report is also deficient, Murphy said, because it does not address such areas as the effects of redevelopment upon traffic outside the project area.

Santa Paula Mayor Kay Wilson responded by saying the lawsuit was expected. “We . . . understand the county feels it has to do it. But I have to defend Santa Paula because it needs and deserves a redevelopment project.”