RW&G

SUPREME COURT UPHOLDS DISSOLUTION OF REDEVELOPMENT AGENCIES; STRIKES DOWN VOLUNTARY ALTERNATIVE REDEVELOPMENT PROGRAM

December 2011

The California Supreme Court today upheld the California Legislature’s action to dissolve California’s redevelopment agencies, and struck down the companion “voluntary” participation scheme, effectively ending redevelopment in California.  In California Redevelopment Ass’n. v Matosantos, the challenge filed by the CRA and others, the Court held that the Legislature acted within its legislative authority in adopting AB 1X 26, the dissolution measure.  As to AB 1X 27, which would have allowed agencies to continue in existence if the agency’s community sponsor made significant payments to the State, the Court found that Proposition 22 prohibits such payments and struck down the entire statute.

This decision means that redevelopment agency activities continue to be suspended and agencies will be required to wind-up activities, dispose of agency assets and dissolve in the coming months.  RWG will provide more advice regarding the impacts of this decision and the actions redevelopment agencies and cities must take in the very near future to our clients. 

Click to read the Supreme Court of California's opinion

For more information, please contact Robin D. Harris at 213-626-8484 or rharris@rwglaw.com.


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