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Petaluma still weighing appeal in bid to get redevelopment money

Petaluma is still fighting for the return of more than $20 million in redevelopment funds the state took from the city in 2012 when it dissolved redevelopment agencies throughout the state.

The city has two lawsuits pending against the state Finance Department, involving funds the city had planned to use to pay for the Old Redwood Highway and East Washington Street interchanges with Highway 101 and the long-planned Rainier Avenue crossing.

In total, the city believes it is due $21 million, City Manager John Brown said.

A state court ruled against Petaluma in both suits, but the city is mulling appeals. Last month, the appellate court granted the city until early June to file appeals.

"There are a lot of wheels moving behind the scenes, but it's all in closed session, so I can't comment," said Councilman Mike Healy.


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