Freeze of New Redevelopment Is 'Harsh'

San Juan Capistrano's blight-blasting agency has been left in suspended animation while the California Supreme Court decides whether a section of the latest state budget is constitutional, City Councilman said Thursday night.

On Thursday, the Supreme Court justices chose to hear a case filed by the League of California Cities and the California Redevelopment Association to void legislation that threatens to eliminate the hundreds of redevelopment agencies statewide.

In doing so, the high court is halting the agencies from issuing any new bonds and their ability to start any new projects. 

Before Thursday's news broke, the San Juan Capistrano council had already weighed its options allowed under the state's budget bill: disband the agency or .

On Aug. 2, it voted 3-1 in favor of the latter.

On Thursday, the council was set to firm up its decision by adopting a new ordinance that would allow the withdrawal and would also formally re-establish the redevelopment agency. It did so in a mirror 3-1 vote with the added exception that it would not become effective until the court's stay is lifted.

"It’s kind of an insurance policy," said, a strong advocate for redevelopment agencies, .

Stuck with an 'Albatross' 

The Supreme Court expects to rule on the redevelopment case by mid-January.

Until that time, the San Juan Capistrano City Council, which acts as governing board of the Community Redevelopment Agency, cannot act on its desire to sell an .

"That seems pretty harsh," said Kramer.

City Attorney Omar Sandoval said the agency also can't sign any new leases on the agency's 24 affordable-housing units, Little Hollywood, which each rent for about $600 a month.

The rent is used to keep the Little Hollywood program running, said San Juan Capistrano's financial officer, Cindy Russell. The program is designed to make low-income residents self-sufficient; with lower rents they can afford to save to buy their own homes or to attend college, she said.