Legislation in California that officially dissolves its redevelopment agencies offers them the chance to stay alive -- but at a cost that may be too high for some.
"In late June the legislature passed a bill, AB X1 26, which dissolves the state's Redevelopment Agencies by October 1, and an attached bill, AB X1 27, which prevents dissolution if cities pay their prorated share of $1.7 billion by the end of the year and millions more in future years to allow the state close its budget shortfall. California Governor Brown is expected to sign both bills in the next few days.
According to CRA/LA, which is by far the largest redevelopment agency in the state, the bills would necessitate a payment by the city of LA of roughly $70 million by this January and an estimated $38 million in future years in order to preserve that agency. San Francisco's payment would measure between $24 and $27 million, that city's agency said. Riverside's $19.6 million payment would be about 40 percent of its redevelopment revenue according the city's development director Emilio Ramirez."
As a result of the legislation, it's likely that many redevelopment agency projects will stall or die.
FULL STORY: Ransoming Redevelopment?
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