Commentary: Setting the record straight on Town Center acquisitions

In his latest letter attacking the city and its progress on the Town Center project, Frank Kertai said Scotts Valley paid “recklessly” high prices for the key Town Center parcels it purchased with Scotts Valley Redevelopment Agency money — funds that cannot be used for any general fund expenses. In particular, he attacked the city’s recent decision by an unanimous vote to buy the critical land owned by Suburban Propane and finally relocate their propane tanks away from Mt. Hermon Road.
To my amazement, he made this charge without informing readers that the city paid 20 percent less than the appraised value for that parcel, a price that was reaffirmed by the appraiser shortly before purchase.
I don’t know how anyone could exclude these facts and still cling to any pretense of fairness or accuracy. Tough but fair criticism, although unpleasant to receive, is good for any organization that knows how to listen and typically leads to better public policy decisions. Deceiving fellow citizens about the most basic facts in public discourse, however, shows a lack of respect for neighbors and potentially poisons the civic well that our city, schools and community draw their strength from. Indeed, we are fortunate that virtually nobody in Scotts Valley, outside of Mr. Kertai and his small circle, regularly conduct themselves in such a manner.
Every property the city has purchased with this non-general fund money has been backed by an appraisal or an assessment of comparable sales performed by respected real estate professionals. In every instance, the city has consistently spent either at or below market value, as determined by these real estate professionals or the market itself, as we did most recently in using non-general fund money to finally relocate the propane tanks from Mt. Hermon Road, thus clearing the way for the Town Center.
I believe moving these propane tanks and buying this land with our redevelopment agency funds can fairly be called a momentous development in Scotts Valley’s relatively short history. The city has been trying for two decades to relocate the propane tanks and bring the area’s land owners together behind a Town Center plan. This action does that and adds to the council’s work on the Town Center, which is making progress even in today’s depressed economy. What’s more, the economy makes this the perfect time to get a good deal on undeveloped land, as the city has done.
Last year, the city eliminated staff positions, instituted a furlough, kept employees doubled-up doing more than one job and further tightened its belts to prepare for an increasingly lean fiscal future. While this stinginess, which has resulted in a general fund increase far behind the rate of inflation over the last four years, continues to be essential with our general fund, it also presents opportunities for our redevelopment agency fund.
As people can guess from the name, a redevelopment agency is intended primarily for redeveloping and revitalizing distressed or under-performing properties. It has an annual revenue stream of millions of dollars that will continue flowing to Scotts Valley through the year 2040. These dollars cannot be used for general fund activities, such as police pay, park maintenance, road re-surfacing and the like.
Instead of being assailed by Mr. Kertai and the same two or three others who have relentlessly attacked the city for years, Scotts Valley’s recent unanimous action to use these redevelopment funds to move the Suburban Propane tanks from Mt. Hermon Road. should be praised for clearing the way for the Town Center. With this action, an economy-enhancing destination development of 100,000 square feet or more of upscale retail space will provide our community with a pedestrian-friendly common gathering place, a village green, outdoor cafes and the like all integrated with Skypark, along with our new library, a project that is also funded 100 percent with non-general fund money.
This is an exciting development, one worth celebrating, and a harbinger of good things to come.
• Jim Reed is the mayor of Scotts Valley.