California Supreme Court Kills Redevelopment Agencies. Now What?


California’s redevelopment agencies (RDAs) receive 12 percent of the state’s property tax revenue. In this economic climate, that put a bull's-eye on their heads. Upon taking office, Governor Brown pushed through legislation to abolish RDAs, so the tax increment revenue they receive can be used for other purposes – mostly education. In a political compromise, the legislature passed two bills – AB 1X 26, which abolished RDAs; and AB 1X 27, which permited municipalities to keep their RDAs if they remit certain “voluntary” payments into the state’s fund for education. The RDAs sought immediate Supreme Court review, asking the Supreme Court to invalidate both of the bills. On December 29, 2011, the Supreme Court handed down the RDAs’ worst nightmare – upholding AB 1X 26, and thereby abolishing the RDAs, while invalidating AB 1X 27, which was their lifeline.

Ironically, the RDAs’ undoing was Proposition 22, a ballot initiative the RDAs had fought for and won just over a year ago.

The result has potential to create complications for developers who have projects in the works with RDAs.

Please see full alert below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Written by:

Published In:


DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Snell & Wilmer | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.