Last week's decision by the California Supreme Court that deemed it legal for the state to seize redevelopment funds is expected to have long-term consequences for San Ramon.

The state's dissolvement of California's 398 redevelopment agencies, which hold a coffer of $1.7 billion, is part of Gov. Jerry Brown's plan to close the state's budget deficit.

But the cuts will be felt in San Ramon. Though there are not any newly funded projects being undertaken by the agency, it is responsible for three parcels of land, all of which now will likely be sold off, with the money going to the state.

Two of the parcels were zoned for affordable housing projects, and the third is the land that was home to Mudd's Restaurant before it closed.

There were plans to build a new a restaurant where Mudd's was located, but those plans stalled. Some community members are trying to perserve Mudd's as a historical site, but that effort has yet to come to fruition.

For the two other parcels, losing land zoned for affordable housing will make it more difficult for the city to meet state-mandated affordable housing requirements.

"The only dedicated funding for affordable housing was through redevelopment agencies," San Ramon City Manager Greg Rogers said.

The loss of redevelopment funds will also impact the city's general fund. Rogers said about $1 million of redevelopment funded programs may need to be paid for by the city's general fund, which is around $36 million, as a result of the agency's dissolution.

Projects funded by the redevelopment agency include: the community gyms at Iron Horse and Pine Valley Middle schools, road improvements to San Ramon Valley Boulevard and Alcosta, the senior center remodeling project and a training facility for the San Ramon Valley Fire Protection District.

"It's been a great mechanism that's allowed us to do some very good projects for the city," Rogers said.

It will be up to the city to pay for such projects moving forward.

The city will have to decide if it wants to administer the dissolution of the agency itself, or for an outside successor agency to step in and dissolve the agency.

The City Council may start reviewing its options as early as its next meeting on Tuesday, Rogers said.