Lawyers call redevelopment settlement legal
Attorneys for the state said the settlement they examined that would end a county lawsuit over a San Diego redevelopment area appears to be legal.
State Sen. Christine Kehoe asked the Attorney General’s Office earlier this month to investigate the June agreement regarding the Grantville redevelopment zone.
Under the terms of that deal, more than $60 million in redevelopment money was earmarked to be exchanged in a complicated swap that would use funds originating from Grantville to support a downtown portion of the San Diego Trolley.
In return, money slated for downtown redevelopment would be channeled to the county for projects in the North Embarcadero. The city maintained that redevelopment tax proceeds from Grantville could be spent downtown because the Green Line trolley, which passes through Grantville, connects with downtown trolley lines.
The opponents who filed suit to stop the transfer of funds on Friday say the deal is a “sham transaction.”
In a letter yesterday, an attorney for the state wrote that critics raise “a legitimate question” about the trolley issue. However, contemporary laws prevent “judicial challenges to such expenditures.”
On another issue, namely the use of redevelopment funds to end a legal battle, the attorney wrote that it could be regarded as an end-run around changes in the law that bar such maneuvers. The city and county bypassed the provision by including $31 million in downtown funds to settle the county’s claim. Downtown redevelopment plans were passed a year before the law changed.