North Bay Business Journal

The battle between local and state governments over redevelopment funds earmarked for construction projects is intensifying as Santa Rosa, Petaluma and the county of Sonoma take legal action after state finance officials repeatedly rejected claims that the funds are legitimately committed to projects in advanced stages of progress.

SANTA ROSA — A dispute between state government money managers and the city of Santa Rosa over millions of dollars in redevelopment money, part of which the city deems necessary in coming months to kick-start a large Railroad Square transit-oriented project, escalated in the closing days of the year, as the city joined a growing number of local governments statewide not in a hurry to comply.

On Oct. 29, 1975, the New York Daily News carried this headline after President Gerald Ford gave a speech denying federal assistance to keep New York out of bankruptcy: “Ford to City: Drop Dead.”

For Santa Rosa and its 13-year effort to rebuild Railroad Square, the headline could read: “Gov. Brown and Sacramento to Santa Rosa: Drop Dead.”

SANTA ROSA — As a 13-year project to transform the historic yet vacant cannery area around a planned downtown commuter-train station reaches a critical point to start construction next year or lose critical funding, the city of Santa Rosa plans to plead its case in Sacramento later this month for the release of redevelopment funds considered key to starting the $200 million-plus project.