Eminent Domain Report

We all knew that redevelopment agencies wouldn't go down without a fight after the California Supreme Court delivered the elimination-knock-out-punch in California Redevelopment Association v. Matosantos.  As expected, agencies took a two-pronged approach to try and stave off their elimination: (1) through the legislature, and (2) through the court system.  Friday delivered another one-two punch to redevelopment agencies, and this time they may be finally pinned in a corner.  

Legislative Update:  With respect to the legislative fix, we reported a few weeks ago that Senator Padilla had proposed legislation -- Senate Bill 659 -- that would delay the dissolution of redevelopment agencies until April 12, 2012.  This would, of course, not only clean-up the wind-down process, but also give the CRA time to come up with other potential budget fixes that would allow redevelopment to continue in some form.  Friday delivered the news that SB 659 would not be taken up by the legislature.  According to the CRA Executive Director's Update, the bill "appears to have died and will not move through the legislature."  The CRA has identified a number of issues that still need to be fixed, including legal bond obligations, loss of staff, and stranded public infrastructure projects.  

Judicial Update:  With respect to the full court press through the judicial system, the Supreme Court challenge was not the only litigation challenging the adoption of AB1X 26.  We reported some time ago that 12 other cities had filed a lawsuit in superior court challenging some of the technical, procedural issues as to how the bill was adopted.  Friday brought a preliminary hearing on those claims, and it was once again bad news for redevelopment agencies.  According to an article in the Sacramento Bee, Judge rejects efforts to halt elimination of California redevelopment agencies, The superior court refused to stave off their elimination, and while it is not a final ruling, the preliminary ruling is likely a good indicator of the ultimate outcome.  

Are there any bullets left?  Is redevelopment finally over?  With the February 1 dissolution date quickly approaching, the end may finally be near.