Redevelopment in Sacramento will continue, but it will cost the city more than $20 million. The City Council unanimously approved an ordinance Tuesday that allows the city to make an initial $18.3 million payment to the state in order to maintain the Sacramento Housing and Redevelopment Agency. The ordinance – an emergency measure that takes effect immediately – authorizes the city to participate in the “Voluntary Alternative Redevelopment Program” (VARP) under a new state law (ABx27) enacted in July. Participation in the program allows redevelopment agency activity to continue as long as continuation payments are made to the state each year. La Shelle Dozier, SHRA executive director,

Mayor Kevin Johnson and Sacramento City Council members on Tuesday discussed their opposition to Gov. Jerry Brown’s proposal to de-fund local redevelopment agencies. Johnson said at his weekly press conference on Tuesday morning that Brown’s proposal could interfere with $108 million in local redevelopment funds that have not yet been spent on projects. He said he wanted to examine the option of fast-tracking redevelopment projects in light of Brown’s proposal. “At the end of the day, we’re going to fight like crazy to try to prevent redevelopment agencies from being cut,” Johnson said. “We’ve got to salvage and preserve the dollars that we do have by almost any means necessary.” Counci

Developer Bob Leach withdrew his proposal Tuesday to build a hotel on K Street Mall after financing — including public bond financing from the city — fell through. The city of Sacramento's Redevelopment Agency now must go back to the drawing board by requesting other proposals for the property at 8th and K streets, as well as adjacent property in the 800 block of L Street. "He pulled the plug," Sacramento City Councilmember Kevin McCarty said following Tuesday's City Council meeting. The developers were asking the city to contribute more than $18 million in land and nearly $15 million in tax rebates toward the project. "The city is not in a position to bond to provide permanent financi