POMONA - City Council members are expected to take a series of steps Monday night to let the state know that Pomona intends to continue having redevelopment activities in the future.  
In late June, as part of the adoption of the state's 2011-12 budget, Gov. Jerry Brown signed Assembly Bill x126 calling for cities and counties to dismantle redevelopment agencies by Oct. 1, according to a city staff report.
 
However, the governor also signed Assembly Bill x127, which left a window for the continued operation of redevelopment agencies - but at a high financial cost.
 
If Pomona chooses to continue carrying out redevelopment activities, it would have to pay the state close to $8 million in addition to annual payments estimated at about $1.7 million, said Raymond Fong, Pomona's redevelopment director.
 
The money would go to schools and other local government uses.
 
Local governments must make final decisions this fall on how they will proceed.
 
"We're approaching (the situation) with an abundance of caution," Fong said.
 
City administrators will use August to review Pomona's finances and those of its redevelopment agency and determine if they have the means to make the payments the state requires and still meet other commitments, Fong said.
 
"We need to do the analysis and be able to come up with a set plan" before a recommendation can be presented to the council, he said.

Monday night council members will have a preliminary vote on a proposed ordinance and resolution declaring the city's intent to participate in a program to keep redevelopment activities going and comply with accompanying regulations, the staff report said.
 
While cities explore their options, others, including the California Redevelopment Association, are preparing to go to court seeking to overturn A.B. x126 and A.B. x127.
 
Some council members said at this stage it's hard to say what route the council will take.
 
"The cost factor is high," said Mayor Elliott Rothman. "The state take-away is huge."
 
Rothman said once an analysis is complete, he and the rest of the council will have a better idea as to whether the agency should fold or continue operating.
 
He is concerned if the city continues operating the agency, it may have to pay the state so much there may not be enough funding to carry out projects.
 
Among those projects is one that calls for turning the site of the Pomona Auto Center in southwest Pomona into a retail area anchored by a Target store.
 
When it comes to the Target development, "I worry we've been dealt a death blow on that," said Councilman Steve Atchley.
 
The city has a number of projects it would like to carry out, but one Atchley is particularly interested is improving the area around Foothill Boulevard and Towne Avenue in north Pomona.
 
Many local elected officials are waiting to see what happens to the lawsuit filed by the California Redevelopment Association, Rothman said.

But it could take time before the suit is resolved, he said.