The City of Goleta received word from the Department of Finance (DOF) Tuesday that it is challenging the City’s determination that the transfer of redevelopment bond proceeds to the City for San Jose Creek Project was proper.  Like many cities which had redevelopment agencies with on-going contracts for projects, Goleta is now having to defend its projects.

“While the letter from DOF is consistent with what has been sent to other agencies, we are disappointed that they are questioning the validity of the transaction,” said City Manager Dan Singer.  “Goleta’s actions were legally correct and we are confident that when the facts are considered, the City’s action will be validated.”

The City is requesting a “meet and confer” appointment with DOF to discuss the contents of the letter. 

“While this is a bump in the road, our San Jose Creek Project will move forward.  This project is exactly why redevelopment agencies were created – to eliminate blight. It is our moral obligation to complete the project and protect the safety of our residents and our community,” said Mayor Roger Aceves.  “I am angered by yet another attempt by the State to steal our local dollars without regard for the impact to our community.”

“The City of Goleta is in good fiscal health because of the Council’s diligence over the past 11 years and expect to remain so, regardless of the outcome,” said Finance Director Tina Rivera.

The City of Santa Barbara recently completed a process with DOF and received confirmation that it will be able to retain its parking garages because of the public benefit of the structures.

For more information or questions, please contact Goleta City Attorney Tim Giles at 961-7534.