The La Canada Flintridge Redevelopment Agency has voted to delay action on a project plan until questions concerning low-income housing within the city are resolved.
In doing so, the Redevelopment Agency, which is made up of members of the City Council, sacrificed any revenue that might have been generated by the project this year.
Concurring with a recommendation by City Manager Donald Otterman at Monday's meeting, the agency decided to wait as the Citizen's Advisory Committee on Redevelopment continues researching ways to circumvent a state law that requires cities to set aside 20% of their redevelopment funds for low- and moderate-income housing.
The 1976 law was enacted because legislators thought that redevelopment was not fulfilling its purpose of providing affordable housing.
The city reconsidered its original plan after Gov. George Deukmejian recently vetoed legislation that would have allowed the wealthy city of Indian Wells to build most of its state-required housing outside the city's boundaries.
La Canada Flintridge had worked out a similar plan with Los Angeles County officials in which the city would give enough money to meet its housing requirements to the county, which would build the housing in unincorporated areas.
On Tuesday, the advisory committee decided to set up a meeting with Indian Wells officials to discuss the similarities between the two communities' proposals and determine how the governor's decision might affect La Canada Flintridge.
At Monday's meeting, Councilman Ed Phelps said he wanted to make sure that no more of the city's resources are devoted to the plan than necessary.
"My major concern is that an awful lot of work and money has gone into this thing already," Phelps said. The city should rely on the advisory committee to research the alternatives and do the planning, thereby limiting staff time and resources, he added.
The redevelopment agency will lose about $15,000 that would have been generated on property values in the Foothill Redevelopment Project, said Otterman. But he said that was preferable to risking litigation with the original plan.
"It's a better option than not knowing what's going to happen with the housing set-aside question," he said.
The committee, which will look at ways to meet the requirements of the law, must report to the council by Oct. 1.