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DEFENSE COMMUNITIES 360

Gov. Brown Signs Bills Eviscerating California Redevelopment Agencies

  • June 29, 2011
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California Gov. Jerry Brown (D) signed two bills Wednesday essentially eliminating the state’s 398 redevelopment agencies and triggering redevelopment officials to announce plans to file a lawsuit challenging the legislation.

The California Redevelopment Association said the suit will ask the court to postpone enacting the legislation so agencies can continue to operate, reported the Oakland Tribune.

“We’re deeply disappointed that slim majorities in the legislature passed this budget that relies on the illegal extortion of revenues from redevelopment agencies that will never materialize,” the association said in a written statement.

The legislation requires the state’s redevelopment agencies to pay the state $1.7 billion initially and $400 million annually afterward if they want to continue operating. Most cities’ agencies would face multimillion-dollar payments, including Concord at $6.2 million and Alameda at $5.2 million, according to the Tribune. The city of San Francisco said the legislation would harm the redevelopment at Hunters Point Shipyard.

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