Eminent Domain Report

While Governor Brown's push to eliminate redevelopment agencies seemed to drag on forever, California's redevelopment agencies were not so slow to act once the long-contemplated ABX1 26 and ABX1 27 became law.  On Monday, the redevelopment agencies filed suit directly in the California Supreme Court seeking to overturn the recent enactments.

The redevelopment agencies are represented by the California Redevelopment Association and the League of California Cities.  San Jose and Union City also joined in the lawsuit claiming they will face elimination since they cannot make the contemplated payments required to stay in existence.  

According to a Sacramento Bee article, California redevelopment agencies sue to block redevelopment plan, the redevelopment agencies claim that the legislation violates the voter-approved Proposition 22, which was intended to prevent the legislature from transferring transportation or redevelopment funds (such as fuel taxes and property taxes) to benefit other state or local entities.

The redevelopment agencies filed suit directly in the California Supreme Court because the legislation impacts cities across the state and only the Supreme Court can act authoritatively before the first redevelopment payment is due in January.

We will follow this closely.  Grab some popcorn; the show has just begun.