The Grass Valley City Council tonight, acting in its role as the Redevelopment Agency, will be considering what to do about state plans to take a total of 750-thousand dollars from the agency. City Administrator, Dan Holler, says the city is going to have to set aside money in the event the state is successful, "We're asking the council to reserve money aside, should we not be successfull in a current lawsuit in the state's take away of redevelopment money. If we're not successful in the lawsuit, this May we would have to make just under a $618-thousand payment from the county to the state, and, as of next year, another $127-thousand dollars, plus.

Holler says he's also asking the Redevelopment Agency to refinance its debt, "Hopefully, we'd be able to save in the neighborhood up to $200-thousand over the life of the existing debt. The majority of that, hopefully, coming on the front end; that first say, three to four years of reissuance of debt, which would put more money into the agency at an earlier time frame."

Grass Valley has joined a lawsuit filed by the California Redevelopment Association in an effort to prevent the state from taking redevelopment agency funds. The council will also be accepting an easement deed as it continues preparations for funding of the Dorsey Drive Interchange Project. That item is included in the consent agenda. The Grass Valley City Council meets tonight at seven at Grass Valley City Hall.