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On August 11, 2011, the California Supreme Court stayed legislation that dissolved California Redevelopment Agencies.
Earlier this year, the legislature dissolved all California Redevelopment Agencies and claimed as surplus funds those property taxes that would have been allocated to each redevelopment agency. 2011 Cal Stats, 1st Extra Sess, ch 5 (AB 26) (operative October 1, 2011). The redevelopment agencies were prohibited from incurring new debts or legal obligations. The legislature also authorized the operation of specific, voluntary alternative redevelopment programs, conditional on prior notice, the adoption of an ordinance by the affected city or county on or before November 1, 2011, and payments of redevelopment funds to school districts and other special districts beginning January 15, 2012. See 2011 Cal Stats, 1st Extra Sess, ch 6 (AB 27).
On July 18, 2011, the California Redevelopment Association, the League of California Cities, the City of Union City, the City of San Jose, and John F. Shirley (executive director of the California Redevelopment Association) filed a petition for writ of mandate seeking to invalidate the two chaptered bills and to request a stay on each of them by August 15, 2011.
The California Supreme Court in California Redevelopment Ass'n v Matosantos (S194861; 8/11/2011) issued an order to show cause why relief should not be granted and also granted stays on both bills. It left in effect a portion of 2011 Cal Stats, 1st Extra Sess, ch 5 - the portion that added a new Division 24 of the Health & Safety Code (Health & S C §§34161-34167) (exempting from the stay prohibition that agencies desist from incurring new or expanding existing monetary or legal obligations).
The court issued an abbreviated briefing schedule. A decision on the petition is anticipated no later than January 15, 2012.
For further discussion on this topic, see Condemnation Practice in California (3d ed Cal CEB 2005); The California Municipal Law Handbook (Cal CEB Annual); and, California Land Use Practice (Cal CEB 2006).
© The Regents of the University of California, 2011. Unauthorized use and/or duplication of this material without express and written permission from this blog's author and/or owner is strictly prohibited.
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