Faced with a $43 million budget shortfall, members of San Diego city’s budget committee want the Development Corporations to pay back some of their multi million dollar redevelopment loans. KPBS reporter Alison St John has more.
The Center City Development Corporation owes the city over 100 million dollars, which it plans to pay back over time with state tax breaks. CCDC agreed to pay $7.5 million this year, but is still processing the paperwork.
Councilmembers Kevin Faulconer and Donna Frye disagree over how much should be paid back, but they agree that it’s time for the Corporations to stop delaying tactics.
Frye: What I’m asking for is a certainty that the loan will be repaid,”
Faulconer : I’m agreeing with you.
Frye, “so long as I had some assurance that we would not run out of money before those loans are paid back.
Faulconer :
Absolutely right to ask.. we are after the same goal here.
Redevelopment benefits the city. For example, the city does not have to spend money to repair roads or build parks in redevelopment areas.
But the council’s budget analyst says some of the city’s redevelopment areas simply don’t generate enough income to ever pay back the loans.
Alison St John KPBS News.