Photograph by Kathy De La Torre

The new street signs gracing Los Gatos are a part of the downtown beautification project, much of which is being funded by redevelopment funds. Funding for the signs, designed by Rick Tharp of Tharp Did It, came from the public works budget.

Money becoming available because of redevelopment

By Nathan R. Huff

It would strike most people as odd that a town agency would strive to be $4 million in the red by 2004, but that's exactly where Los Gatos is hoping to be.

Los Gatos will most likely be operating out of the red for a number of years, but it's not the result of overextending the town budget. Through its Redevelopment Agency, the town is able to fund projects within the redevelopment area based on the expected growth in property tax revenue.

Redevelopment agencies are created to rebuild and renovate areas of "blight" caused by natural disasters or depressed economies. The agencies work by "freezing" the property tax on lands within the redevelopment area.

As property values increase, the additional tax revenue goes into the redevelopment fund. The agency will spend money now based on what it expects to receive in increased tax revenue as the blighted area improves. The revamping of downtown San Jose was made possible through that city's redevelopment agency.

To ensure that public agencies and districts are not penalized by the redevelopment formula, the state created pass-through regulations. The town has negotiated pass-through agreements with the Los Gatos-Saratoga Joint Union High School district, the Los Gatos Union School district, Santa Clara County, West Valley College, the Santa Clara County Office of Education and the Midpeninsula Open Space District. These agencies receive monies based on the current tax base rather than the frozen base.

Los Gatos' agency, initiated in 1992 following the 1989 Loma Prieta earthquake, has a number of projects already planned. These are detailed in the agency's Capital Improvement Program for 1999-2004, adopted last June. They include some financing for a downtown parking garage, street reconstruction and improvements, storm drain upgrades, and the revamping of the Town Plaza.

The agency will spend $282,000 this year to realign and improve the intersection of N. Santa Cruz and Bachman avenues. Sidewalks, curbs, gutters and storm drains will all be moved or installed to increase traffic and pedestrian safety and efficiency.

Grays Lane will also get a makeover during the next year, ending up as a one-way street. The two-year project will cost the town $344,270, and will bring the street sidewalks into compliance with the Americans With Disabilities Act.

The Town Plaza facelift will cost $673,960 over two years. The renovated plaza will be slightly larger, better lit and include a new lawn and fountain.

In addition to capital improvements, the town must allocate 20 percent of its redevelopment funds to create and maintain the town's affordable housing stock. With that perspective, the town drew up the boundaries of its redevelopment area to include the Los Gatos Mobile Home Park and Miles Avenue, which will be the site of a 12-unit affordable housing development.

Photo: Fisher Middle School students mummify a game hen in ancient cultures study

DeCinzo: Wine at Carwash

Obituaries

Pictures From the Past

Older workers appeal to employers

Sports Briefs

Wildcats get back-to-back baseball wins

Mets beat Giants in Pony League

Mary Mullins has perfect day for Cubs

Bates, Hennessy win at Oakland Invitational