Stay of Execution for California's Redevelopment Agencies?

The Supreme Court decision to approve the elimination of California's redevelopment agencies late last year set February 1st as the date of dissolution. A new bill in the state senate would slow down the clock.

1 minute read

January 17, 2012, 8:00 AM PST

By Jonathan Nettler @nettsj


With only two weeks remaining before the mandated dissolution of all state redevelopment agencies and municipalities across the state struggling to figure out how to comply with the Legislature's orders, Josh Stephens reports that Sen. Alex Padilla has introduced legislation in the State Senate to push back the dissolution date to April 15, "in order to allow cities and agencies time to put their affairs in order -- and, presumably, to allow the Legislature to deliberate on a replacement for redevelopment before the agencies are dismantled and their employees laid off."

In addition, a recent report by the California Redevelopment Association outlines a myriad of logistical problems they have identified in AB 1x 26, the budget bill that authorized the dissolution of redevelopment. "The CRA contends that AB 1x 26 and the dissolution process that is prescribes will lead to litigation, bond defaults, and other complications stemming from the liquidation of redevelopment agencies' assets."

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