Government
Jan. 10, 2012
Facing dissolution, redevelopment agencies plead for more time
Two separate efforts - new legislation and a recently revived court challenge - could extend and potentially save the lives of California's more than 400 redevelopment agencies.
Daily Journal Staff Writer
Two separate efforts - proposed legislation and a recently revived court challenge - could extend and potentially save California's more than 400 local redevelopment agencies.
Under a state Supreme Court ruling issued last month, the agencies, which help fund development and affordable housing projects in blighted areas, will dissolve on Feb. 1.
But as early as today, state Sen. Alex Padilla is expected to introduce Senate Bill 659, which would delay the agencies' dissolution to mid-April. That would give agencies more time to tie up loose ends and would extend the window of time for the Legislature to save them completely - a possibility being discussed in municipal circles throughout the state.
To take effect before the agencies shut down, however, Padilla's bill must contain an urgency clause, which allows for legislation to immediately take effect upon passage but requires a supermajority vote in both houses.
Some observers have questioned the practicality of eliminating the agencies so soon after the Dec. 29 high court decision, worrying that a month may be too little time to complete the complex process of wrapping up projects.
"It's just in everybody's interest to take a little more time to avoid a difficult and perhaps chaotic situation if this thing is rushed," said Chris McKenzie, executive director of the League of California Cities, which worked with Padilla to develop the measure. "There's a tremendous number of questions about how it affects certain contracts and projects and how it affects outstanding bonds."
Some have even warned that closing agencies' doors too quickly could draw lawsuits from parties that have existing contracts with them, such as labor unions and bondholders.
Practical issues are among the concerns raised by a separate effort challenging the budget trailer bill responsible for eliminating the agencies, Assembly Bill 1X 26.
The city of Cerritos, along with nine other cities and their redevelopment agencies, are suing the state on the grounds that the measure is unconstitutional, impairs contracts and was passed in violation of legislative procedure.
Plaintiffs filed the suit in September in Sacramento County Superior Court, but the court put it on hold during the state Supreme Court case. With the high court case complete - and because Cerritos challenged the measure on different grounds than that suit - the cities' case is back in play.
"We believe we have a probability of prevailing on one or more of the merits," said Jeffrey M. Oderman, who represents the cities in the case. City of Cerritos v. State of California, 34-2011-80000952.
Regardless of the suit's outcome, it could at least stall the agencies' closure. The cities have asked Judge Lloyd G. Connelly to stay the agencies' dissolution, effectively putting the entire process on pause until the challenge can be decided in court. Connelly will consider the request at a Jan. 27 hearing.
"Everyone's trying to get more breathing time," said Cerritos Assistant City Manager Kathy Matsumoto, "to let the dust settle and figure out what needs to be done." href="mailto:
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Ben Adlin
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