Santa Paula : Redevelopment Tax Dispute Settled

A dispute between the city of Santa Paula and Ventura County over the share of property taxes each entity will receive from Santa Paula redevelopment has been resolved, with both sides approving an out-of-court settlement.

County supervisors approved the negotiated pact Tuesday, a day after the Santa Paula City Council also signed off on the settlement.

Under terms of the agreement, Santa Paula will receive about 20% of the increase in property taxes that redevelopment in the city is expected to generate, said Daniel J. Murphy, an assistant county counsel.

The agreement also resolves what share of the increased taxes will go to the county Fire Protection and Flood Control districts.

Santa Paula approved a similar agreement Monday with the Ventura County Community College District, which had also sued Santa Paula over its share of future property taxes.

In exchange, the county will drop a lawsuit it filed against the Santa Paula Redevelopment Agency in 1990.

The settlement is structured so that Santa Paula will receive a greater share of funds at the beginning of each year, with the county receiving a greater share the rest of the year.

With the settlement, Santa Paula also stands to receive back taxes that were withheld by the county until the lawsuit was resolved. According to Santa Paula City Administrator Arnold Dowdy, the city should receive between $250,000 and $400,000 within 30 days.

Councilman Les H. Maland said the settlement protects both parties. “Neither the county nor the city got the whole pie--it’s a compromise.”