For Immediate Release: 
May 21, 2001                       

Contact:
David Vossbrink, (408) 277-3515, Office of Mayor Ron Gonzales
Erin Koch, (408) 299-3924, ext. 5440, Office of Jim Beall

San Jose and Santa Clara County to Share Redevelopment Resources for
Neighborhood Improvements

San Jose, CA — The City of San Jose and County of Santa Clara have reached an agreement to share long-term resources from the San Jose Redevelopment Agency, resolving long-standing differences between the two government entities. 

San Jose Mayor Ron Gonzales and Santa Clara County Board of Supervisors Chairperson James T. Beall, Jr. jointly announced the agreement today regarding San Jose’s proposed extension of its redevelopment project areas and neighborhood investment programs.

The comprehensive agreement is the result of discussions between the City and the County that began in mid-1999 in a mutual effort to resolve complex issues regarding redevelopment activities, funding, and impacts on city and county services.

The new agreement will clear the way for the city and the county to use redevelopment resources to improve neighborhoods and aging retail centers, create affordable housing, and build needed capital improvements and public facilities in neighborhoods in San Jose served by both the city and county.

“With this agreement we can focus on achieving results that will improve the lives of the people we both serve,” said Gonzales. “Our residents and businesses care about solutions that work rather than institutional differences that might get in the way of important goals for our neighborhoods.”

According to Beall, “Now we can get to work revitalizing many run-down lots throughout the city.  We can build new housing and community centers, and breathe new life into our neighborhoods.”  Beall also noted that, “This agreement is a historic breakthrough and represents the kind of can-do spirit that people like to see in their local governments.”

 Under the agreement, the county will receive approximately $200 million in capital funds from the San Jose Redevelopment Agency between 2001 and 2014.  To settle several past disputed funding issues, the county will make a onetime payment to the city of $5.5 million.  The agreement increases discretionary revenues to the county of $2 million per year beginning in FY 2002. 

In addition, the agreement provides capital funds to the county from 2015 to 2063 equal to 20% of all Redevelopment Agency bond proceeds. Finally, both parties agreed to mediate future disputes and to work together to achieve mutually beneficial reform of California redevelopment laws.

Three different Board of Supervisors chairpersons have negotiated with San Jose Mayor Ron Gonzales including current Chairperson Beall as well as former chairpersons Don Gage and Pete McHugh.