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Auditor-Controller to Hold Disputed RDA Funds for 49ers Stadium in Reserve

SANTA CLARA COUNTY, CALIF.—Today, the Superior Court in Sacramento instructed the Auditor-Controller of the County of Santa Clara to hold the disputed $30 million of the Santa Clara City Oversight Board (Successor Agency to the former Redevelopment Agency)  funds in reserve.  This action will allow the court time to evaluate the merits of each party’s arguments.  At the meeting of the Santa Clara City Oversight Board on June 22, 2012, the Board voted to terminate an agreement that would obligate the repayment of $30 million to the recently created 49ers Stadium Authority.
County Auditor-Controllers have certain duties under the Community Redevelopment Law, including ensuring that property tax revenues are distributed in accordance with the law. 
 
“Although the County of Santa Clara is not a party of interest in the case, our Auditor-Controller needs the guidance of the Court regarding the proper distribution of the disputed funds since the independent Santa Clara City Oversight Board has voted to terminate the agreement,” said Jeffrey V. Smith, County of Santa Clara County Executive.
 
The independent oversight boards (nine in Santa Clara County) are charged with winding down the former redevelopment agencies and their actions can affect the distribution of property tax revenue.  The Auditor-Controller has the responsibility to distribute the funds in accordance with the law.  In this case, absent an action by the Court, the Auditor-Controller would have been compelled to immediately distribute funds after three days of the Santa Clara City Oversight Board’s actions. 
The Temporary Restraining Order, granted today, will enable the Auditor-Controller to set aside those funds until this matter can be resolved.
“Our goal is to comply with the laws that govern the dissolution of redevelopment agencies,” said Vinod Sharma, Auditor-Controller of the County of Santa Clara.  “We welcome the Court’s review and guidance in this case.”
“Half of the money at issue would otherwise go to Santa Clara Unified School District,”continued Smith. “The eventual outcome of the case could have a significant impact on the school district.” 
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Media Contact: Gwendolyn Mitchell/Laurel Anderson, Office of Public Affairs, (408) 299-5119
Posted: July 3, 2012