10:00 PM PDT on Wednesday, August 10, 2011

By DARRELL R. SANTSCHI
Staff Writer dsantchi@pe.com

The Grand Terrace City Council is making it official and will pay the state in order to restart the city’s redevelopment agency.

The council voted 5-0 Tuesday night to give final approval to an ordinance restarting the agency in 30 days, but will have to make what Mayor Walt Stanckiewitz called “extortion payments” to the state.

Two new state laws require local redevelopment agencies to either shut down redevelopment, used to fund public improvements, or voluntarily turn over a large chunk of redevelopment revenue to help balance the state budget.

Grand Terrace has joined in a lawsuit filed on behalf of redevelopment agencies throughout California challenging the constitutionality of the two state laws.

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