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How The State Will Pick California's Redevelopment Carcass

In last week's court ruling, the California Supreme Court didn't just kill redevelopment. The court also upheld a drawn-out process of other agencies picking the meat off redevelopment's bones.
January 5, 2012, 9am PST | Chris Steins | @urbaninsight
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The carcass-picking process is sure to trigger more controversy – and probably lots more litigation – as cities try to protect assets they transferred away from RDAs last year and other agencies – the state, counties, and school districts – try to grab hold of them. It also puts each county's auditor-controller in the middle of this process. But AB 1x 26 essentially represents a state takeover of tax-increment funds that are not required to pay debt by giving enormous power in the process to the Department of Finance.

Every county's auditor has to come up with a list of each RDA's legal obligations that must be paid back. What this means, in essence, is that if an RDA has committed bond funds to a project, that project will probably be completed; but otherwise probably not. AB 1x 26 gives great power to a new group of "oversight committees" controlled by counties and schools, but gives veto power to the state Department of Finance, which is responsible for balancing the state's budget.

Thanks to Bill Fulton

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Published on Friday, December 30, 2011 in California Planning & Development Report
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