MISSION VIEJO : City OKs Agreement to Share Tax Money
A multimillion-dollar agreement with the county on how to share redevelopment tax revenue has been approved by the City Council.
The council action last week helps remove a major obstacle to the city’s plans to invest up to $35 million to renovate an overcrowded street system and help pay for a major expansion of the Mission Viejo Mall.
The agreement was reached after the city indicated its willingness to divide its redevelopment tax income and give the county a $37.5-million share spread out over 40 years. Redevelopment laws allow extra property-tax funds to be set aside by a city trying to repair blighted neighborhoods. County officials had felt the city was cutting into tax revenues that normally would have been sent to the county.
“What we agreed to wasn’t our first choice, and it wasn’t their first choice, Councilwoman Susan Withrow said. But there was no point in wasting legal fees on both sides and probably reach no better agreement than we would’ve come to in the first place.”
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