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News Review
RDA Dissolution & Temporary Restraining Order
Posted Date: 8/13/2013
Recently, Santa Clara County, along with other taxing entities, filed a lawsuit against the City which included a temporary restraining order (TRO). The order required that the City stop spending bonds, revenues and other proceeds that were considered to be former Redevelopment Agency assets.

This decision by the court also holds back $13.4 million, or approximately 9 percent of the General Fund in lease revenues, cash and other assets annually received through City owned land leases.

Unfortunately, one of the effects of complying with the TRO is that it was necessary for the City to request the Santa Clara City Library Foundation & Friends to suspended construction of the nearly completed Northside Library.

While the City immediately complied, we are disappointed with the court’s ruling ordering the City to cease the use of funds that are intended to provide services to Santa Clara residents and businesses.

The order puts the City in a difficult position until the merits of the case are heard by a trial judge in February 2014.

The City is frustrated that it may no longer have local control over several assets - including the Northside Library - due to the recent court order. It is not known if this long-promised service to the community will ever open.

The City would request that State officials and the State Department of Finance step in to help us solve this problem.