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Top Stories: Sept. 24, 2009

RDA Layoffs; Downtown SJ Club Shuttered; Cash in the Trash; 'Voluntary Furlough' in Sunnyvale

by Staff on Sep 24, 2009
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Redevelopment Agency Staff Cut by Almost a Quarter
At the San Jose Redevelopment Agency, 24 staff members are about to get laid off—out of a total staff of 109. The decision, called "heart-wrenching" by Agency head Harry Mavrogenes, was the inevitable outcome of a state raid on the RDA's funds in an effort to cover Sacramento's own deficit. This year the state is grabbing $62 million; next year it plans to take another $13 million. All of this is in addition to the $13 million that the state took in 2008. The layoffs will save the RDA about $3.1 million.

In addition to the layoffs, the RDA will be postponing or possibly even eliminating many of its most important projects. Among these is the $300 million McEnery Convention Center renovation, considered vital if San Jose is to compete with nearby Santa Clara and San Mateo. In an effort to keep the project on track, local hotel owners even tried to raise $150 million in private funds last year.

Other projects, like the "urban market" in San Pedro Square, are more likely to be kept alive because of contractual obligations. The proposed new stadium for the Oakland A's will also proceed because funding to purchase the land comes from land sale proceeds, and this cannot be touched by the state.

Mavrogenes called the state's grab of funds an "illegal take," and vowed to fight it in court. But even if the RDA wins, that will only come after a drawn-out legal battle, and will be too late to save the current employees. The RDA has already sued the state for the $13 million taken in 2008, and that case is nowhere near a verdict. Mavrogenes suspects that the appeals process could take years, while failing to pay in the interim could provoke the state into shutting down the RDA entirely.

Mayor Chuck Reed is another outspoken critic of the state raid on RDA funds. Speaking from Washington, D.C., he said: "Redevelopment provides critical tools to rebuild our economy, create jobs, and revitalize neighborhoods—exactly the kinds of investments we should be making in this recession." Pointing to City Council's own struggle to cover an $84 million budget deficit this summer, he added, "The legislature, in contrast, fails to address its structural budget problems in a prudent and responsible manner, instead choosing to raid local resources with dire consequences for communities, businesses, and families throughout our region."
Read More at NBC Bay Area.
Read More at the Business Journal.
Read More at the Mercury News.


Was That the Last Dance at Wet?
Wet, the San Jose nightclub that has been the scene of several high-profile bar brawls, was put out of business Wednesday by the SJPD. It license was revoked after video of a September 7 fight [url= http://www.sanjose.com/top-stories-sept-14-2009-a21521]made its way to YouTube.

Originally, the club's owners agreed to shut down for a month so as to reconsider their security arrangements. But this was not enough for the police. SJPD reports that a five-month period ending in April, they were called to the club no less than 49 times to deal with problems such as underage drinking, fighting, and even assault with a deadly weapon after a stabbing, which shuttered the club for a week. After the incident earlier this month, in which a security guard took out a taser, the police had had enough.

Owner Michael Hamod refused to comment on the closure before meeting with his lawyers. By law, he has ten days to appeal the decision. If he fails to do so, Wet will have dried up for good.
Read More at The Mercury News.


Recycling Money in Sunnyvale
Sorters working at the Sunnyvale recycling station are used to finding strange things in the trash. A few years ago, they even found the body of a 50-year-old woman. On Tuesday, however, they found Ben Franklin—or rather, 32 Ben Franklins—printed on $100 bills. As the bills fluttered down from a ceiling-level conveyor belt, workers gathered to scoop them up before they got shredded and turned into cardboard.

Local police are now investigating how the money got there. They know it came from Mountain View, but other than that there are no clues as to who lost it or how it ended up in the trash. If no one claims the cash within 90 days, it will be added to Sunnyvale's general fund.
Read More at The Mercury News.

Palo Alto City Workers Volunteer to Strike
Municipal workers in Palo Alto have "volunteered to go on furlough" today to save the city money. But City Manager James Keene is less than impressed with their generosity, and is calling it an illegal strike. "There's no such thing as a voluntary furlough," he says, and has threatened to take disciplinary action against anyone who doesn’t show up for work.

The workers are all members of Service Employees International Union Local 521, which is currently in the midst of difficult contract negotiations with the city. While there is no sign that they will back down on their "furlough," they plan to spend the day benefitting Palo Alto in other ways, by volunteering in libraries and cleaning up local creeks. There's just one thing they won't do—show up for work.
Read More at KCBS.
Read More KLIV.



by Staff on Sep 24, 2009
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