Do you remember the childhood story about a Troll under a bridge who threatens to block passage and eat the three Billy Goats Gruff? Well, this is similar to the county of Santa Clara and the city of San Jose when it comes to Redevelopment Agency money.

Despite the city’s stated commitment to sunshine and open government, city officials and proponents of a proposal to permanently close a block of South First Street concealed critical documents from affected parties for a year—until the eve of a council vote. Promoters of the “pavement to plaza” conversion say a $500,000 grant from ArtPlace requires the street’s full closure. San Jose will contribute $98,000 in park and economic development funds, under the plan, which goes to the City Council at today’s 1:30pm meeting.

Tuesday’s City Council meeting will feature considerably less rancor than recent weeks. Among the key issues on the agenda are transferring housing projects to the Successor Agency of the Redevelopment Agency, including the Mayfair Court Apartments; a public hearing on infrastructure improvements for The Alameda and acceptance of a grant for electric vehicle charging stations.

The stove runs hot in the spring, and a fresh batch of baseball rumors about the Oakland A’s potential move to San Jose came pouring in this past weekend. Bill Madden, of the New York Daily News, tipped the first domino Saturday by reporting writing that MLB Commissioner Bud Selig will uphold the San Francisco Giant’s territorial claims over the South Bay, and prevent the Oakland A’s from relocating to San Jose. Henry Schulman, of the San Francisco Chronicle, begged to differ.

As you may have heard, last month the California Supreme Court terminated all Redevelopment Agencies (RDA) in California. As a result, they will be dissolved by Feb. 1, 2012. The first step is for each RDA to form a “Successor Agency.” This agency will enforce any and all obligations and agreements that are currently in place.

A ruling Thursday by the California Supreme Court is more or less the nail in the coffin for the San Jose Redevelopment Agency. It’s also a critical victory for Gov. Jerry Brown, whose budget has been under scrutiny for major shortfalls compared to rosy projections regarding revenue. The state’s high court decided $1.7 billion can be legally taken from RDAs across the state, and the ruling also denies agencies the ability to “pay to play” by giving money over to the state to remain in existence.

In a quest for even more affordable housing in San Jose, the City Council voted 10-1 to amend the North San Jose Area Development Policy. I voted no. Remember that San Jose has been the leader in providing affordable housing in the state of California, while other cities have done very little. As I wrote about on a prior blog, affordable housing must be a shared goal and not just in San Jose.

The 2006 San Jose City Council unanimously approved a $2 million loan to the San Jose Repertory Theater, fondly known as The Rep. On Tuesday, the 2011 City Council will consider modifying this loan. The Rep has made progress in getting out of the red and into the black by reducing staff, designing less expensive sets, shorter show runs and using San Jose State University (SJSU) students in the most recent play to reduce costs. These cost reductions have allowed The Rep to make all of the interest payments totaling over $200,000. However, like some homeowners, The Rep was only paying interest and nothing on principal.

At the Rules Committee last week, we voted 4-0 not to pursue an audit of the incubator program that was started in 1994. Instead, we decided to stay with the current work plan that includes an audit of the Environmental Services Department. The fact is there was a shared belief by the entire San Jose City Council past and present, up until recently, that incubators were a worthwhile investment.

A small ceremony was held on Saturday with little fanfare, but it was big on Americana style. An eagle scout was honored for his project that constructed a new sign at the Willow Glen Community Center. Volunteer work done by this scout and others helps augment the government’s work in the community during these tough budget times. Also, some suggestions on what the council should do this week when it takes its first decisive actions on how to regulate medical marijuana.

The San Jose Redevelopment Agency’s financial obligations were discussed and voted on last week. The final chapter of RDA will be decided by the State Supreme court sometime before Jan. 15, 2012. Should RDA ultimately end, the state wants to know all of the enforceable obligations. Everything needs to be listed, from bond to lines of credit to legally binding contracts not yet paid out, including debt for affordable housing.

Increasing the tax base helps government provide services at levels that meet most residents’ expectations. At the national level it’s clearly impossible to grow the economy to pay off the national debt. At the state level, the current rate of economic growth is unlikely to keep the budget balanced this year. However, at the local level where budget deficits are not allowed, an increased tax base could go towards providing services to residents and thus restoring key positions.

The Council last week made the second SERAF payment to the state. SERAF is where the State raided all RDA coffers in California—again—in our case taking $75 million from San Jose.

In past blogs I have expressed my concern about the cost to our city of too much housing. Specifically, housing that does not pay its own share of revenue. One example I have pointed out—and constantly been the lone vote against—is affordable housing.

Some meetings have too much at stake to leave to Skype, which is why Mayor Chuck Reed and a small convoy of local officials took a four-day jaunt to Japan last week.

The budget deficits at every level of government have created an atmosphere where everything is up for review. There are no longer any sacred cows when it comes to government spending. Taking a second look at the value of redevelopment agencies has become a current hot topic for discussion.