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California Supreme Court Puts Stay on Redevelopment Payments

The California Supreme Court says it will hear a petition from the California Redevelopment Assn. challenging the constitutionality of   recent budget bills (AB 1x 26 & 27) that eliminate redevelopment agencies unless they agree to make a “ransom” payment to fund State obligations.  The California Supreme Court also granted part of the stay requested by the California Redevelopment Association and League of California Cities.  The stay, in effect, prevents redevelopment agencies from being forced to make the payments until the Court rules on the merits of the case. Grass Valley Mayor Jan Arbuckle reacts to yesterday’s news.

“That is just absolutely the best news for Grass Valley and all of the redevelopment agencies, actually.”

The city of Grass Valley was looking at a $700 thousand dollar payment to the state to maintain the redevelopment agency and had appealed that decision without much success.

“We appealed it and they said, ‘okay, well you don’t have to pay $700,000, so we’ll give you a credit of $52,000’ so $52,000 is $52,000.”

On July 18, 2011, the League of California Cities, California Redevelopment Association of which the city of Grass Valley is part of, filed a petition in the California Supreme Court to have the redevelopment elimination declared unconstitutional.  The lawsuit also requested a stay to prevent the legislation from going into effect until the Court can rule on the merits. The court established an expedited briefing schedule to hear oral arguments as early as possible in 2011, and hopefully render a decision before January 15, 2012, the date when redevelopment agencies are required to make their first payment.


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