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Judge refuses to halt demise of California redevelopment agencies

Published: Saturday, Jan. 28, 2012 - 12:00 am | Page 3A

A Sacramento Superior Court judge Friday refused to stave off the elimination of more than 400 local California redevelopment agencies, rejecting arguments that the Legislature violated the state constitution by cutting off their funding.

Judge Lloyd G. Connelly's ruling on two lawsuits by 12 cities means the agencies stand to be dissolved by Wednesday. His refusal to grant a stay in the cases handed another victory to Gov. Jerry Brown, who has counted on the elimination of redevelopment agencies to deliver more money for schools and public safety.

The California Supreme Court on Dec. 29 ruled that lawmakers last June acted legally to dissolve redevelopment agencies that subsidize construction in blighted areas, such as Sacramento's downtown railyard and the K Street corridor.

But a coalition of cities pressed on with other legal challenges. They charged that taking redevelopment agency funds violated the state's "fundamental" responsibility to uphold local efforts to develop affordable housing and promote employment.

The lawsuits also charged that the Legislature violated the state constitution by reallocating property taxes destined for redevelopment without a two-thirds vote of lawmakers.

Voters last year approved Proposition 25, which allows the Legislature to pass budget bills on a majority vote. But Jeff Oderman, an attorney for the city of Cerritos, argued Friday that the initiative didn't apply to a budget "trailer bill" that brought a structural change in state spending by killing redevelopment agencies.

Connelly said the Legislature had a legitimate right to make a budget decision on "the comparative" harm of taking money from redevelopment agencies vs. failing to fund schools and other programs.

"For redevelopment agencies, this is like … a request for a stay of execution," Oderman responded. "Our harm is total and permanent."

In refusing to grant a stay, Connelly said lawmakers "executed their discretion" appropriately. He said the cities were unlikely to prevail in continued litigation.

Sacramento-area cities, including Roseville, Folsom, Rancho Cordova and Woodland, have already begun the process to dissolve redevelopment agencies. The cities have anointed themselves as successor agencies that will administer enough redevelopment funds to pay debts and complete unfinished projects.

In Sacramento, city officials say loss of redevelopment agency funding could threaten projects that include the renovation of blighted blocks of the K Street mall and ongoing development of the downtown railyard.

© Copyright The Sacramento Bee. All rights reserved.


Call The Bee's Peter Hecht, (916) 326-5539.

Read more articles by Peter Hecht



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