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.

SANTA ROSA — Redevelopment funds totaling $128,500 will finance the construction of 3,500 square feet of trails, educational facilities, and an interpretive center as well as provide native plant revegetation and landscaping and complete construction planning for adjacent properties in need of improvement.

Gov. Jerry Brown’s ears likely were burning early Wednesday morning.

That’s because his idea to end redevelopment funding for cities and counties – part of his plan to close a more than $26 billion California budget deficit – came in for a shellacking

The following are quick takes from local public officials via the Business Journal’s Twitter feed (twitter.com/NBBJ) from this morning’s discussion on Gov. Jerry Brown’s proposal to cut redevelopment agency funding for cities and counties.

SANTA ROSA — Rohnert Park-based Codding Enterprises acquired the former Los Robles Lodge just south of the Coddingtown mall in Santa Rosa in a short-sale transaction Sept. 9, and Codding is exploring redevelopment options such as multifamily homes, shops and a health club.

SEBASTOPOL – A west Sonoma County city with a heritage of apple processing, natural living and artistry could have a dilapidated former apple plant near downtown transformed into a center for artisans and farmers to sell the fruits of their labor.

SANTA ROSA — The five-story vacant AT&T telecommunications switching building in the heart of the downtown area could become a 10-story glass-skinned work of modern art with apartments, offices, museum and restaurant under a proposal city redevelopment officials are considering.

SANTA ROSA – A California appellate court has upheld the June 2006 approval of the “Gateways” plan to redevelop 1,100 acres along a four-mile stretch of central Santa Rosa.

SAN RAFAEL – Approval of a Mi Pueblo Food Center store in a vacant Circuit City building in the Canal area of the city has been appealed a second time, and a local nonprofit alcohol-consumption watchdog group also filed an appeal.

SAN RAFAEL – The San Rafael Planning Commission on Tuesday night rejected an appeal of an approved Mi Pueblo Food Center in a shuttered Circuit City store in the Canal area of the city.

SUISUN CITY – Basin Street Properties will soon open the latest property in its budding hospitality portfolio, a $13 million Hampton Inn & Suites in Suisun City. The hotel will be the first to open in the area in several decades and is the “linchpin” in the waterfront community’s $60 million, 20-year revitalization effort.

SAN RAFAEL – A rapidly growing Bay Area chain of Hispanic grocery stores plans to open its first North Bay location in east San Rafael by this fall. Mi Pueblo Foods Inc. wants to convert the recently closed Circuit City store in the Canal district into a full-service grocery store with outdoor seating, according to [...]