State rejects $2.7 million in redevelopment projects: Watsonville stands to lose funding for business park, solar projects
……In Watsonville, the rejected projects were part of a $42 million list of obligations of the former redevelopment agency.
The state denied $2.4 million for street lighting, water and solar panel projects because the contracts were entered into after a June 27, 2011 deadline set by the state. But Davison maintains because the oversight board re-approved the contracts, they are allowed to stand under the state legislation. Ultimately, the state has the final say.
Close to $300,000 in project management fees for the planned Manabe-Ow business park also were rejected because, according to the April 23 denial letter, the agency was prohibited from acquiring real estate after the June 27 deadline. But Davison said in that case, state officials misunderstood the project. Watsonville isn’t purchasing any property, though the land is serving as security for a loan the city made to the property owners.
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