Legal Update - California Supreme Court Agrees to Hear Redevelopment Challenge; Stays Portions of New Legislation


As discussed in prior Legal Updates, the California Redevelopment Agency, the League of California Cities, and several redevelopment agencies filed a lawsuit in the California Supreme Court challenging newly-enacted legislation (ABX1 26 and ABX1 27) which dissolves redevelopment agencies as of October 1, 2011 unless the local jurisdiction agrees to make substantial payments to fund other local government functions.

Because of the statewide importance of the issue, the lawsuit was filed directly in the California Supreme Court (rather than going through the Superior Court and the Court of Appeal), and among other things, requested a stay of the newly-enacted legislation. In its preliminary response, the State Attorney General agreed that this was a matter of importance which should be considered by the California Supreme Court in the first instance, on an expedited basis.

On August 11, 2011, the Supreme Court agreed to hear the case and set an expedited hearing schedule designed to facilitate a decision before January 15, 2012.

Please see full alert below for more information.

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