GARDEN GROVE : Schools OK Capital Improvement Plan

The Garden Grove Unified School District has approved a plan that would generate about $255 million for capital improvements in the district over the next 40 years.

This week, the board approved an agreement with the Agency for Community Development that would enable the district to receive a share of tax revenue generated through the city’s redevelopment program.

Before going into effect, the agreement must be approved by the city and the agency, said Ron Walter, associate superintendent of business services. If approved, the money would be used exclusively for capital improvement projects such as new buildings and schools, repairs to electrical, heating and cooling systems, and land purchases. Under the agreement, the money cannot be used to augment the district’s general fund, and all capital improvements must be made within the city.

When redevelopment agencies alter or add to their redevelopment areas, state law requires that other agencies, including school districts, be allowed to negotiate a share of the tax revenue that the project will generate, Walter said.

Board member Dick Hain said Wednesday that after six months of intense negotiations, the city and district have hammered out an agreement favorable to both sides.

The City Council and the agency are expected to consider the agreement during a joint meeting on Tuesday.