UPDATE: State Supreme Court Upholds Law Eliminating Redevelopment Agencies

In a decision that will reverberate throughout the state, the California Supreme Court upheld a law Thursday that  and struck down a law that allowed the agencies to pay to stay in operation.

The ruling in California Redevelopment Association v. Matosantos clears the way for the state to dismantle redevelopment agencies and use their assets to fund education programs. The CRAs contended that the state did not have the authority to eliminate redevelopment agencies, but the court disagreed.

"[The state's] power includes the authority to create entities, such as redevelopment agencies, to carry out the state's ends and the corollary power to dissolve those same entities when the legislature deems it necessary and proper," the court's ruling reads.

The timing of the decision makes it hard to evaluate since most city politicians and attorneys are on vacation for the holidays.

At this point, the LA County Community Development Commission (CDC)--which services the West Altadena area--is in the fact-finding stage after the California Supreme Court's ruling.

"We need to ensure we are carefully reviewing the decision, speaking to colleagues, and legal counsel," said Corde Carrillo, the CDC's Director of Economic Development and Redevelopment.

In terms of how the ruling will affect the West Altadena Project Area Committee (WAPAC)--which serves as an advisory board to the CDC--Carrillo said that under redevelopment law, the WAPAC would not be an official tack to the city.

"If the CDC is eliminated, there is no formal need for the publicly-funded WAPAC," said Carrillo, who is also the CDC's representative to WAPAC.

"Altadena could still use the WAPAC as an advisory board but it would have to be funded from another public source.  Any tax increments that would otherwise fund the WAPAC would be lost," explained Carrillo.

And still, the fight is not over.

"We fully intend to have a January meeting for the CDC and WAPAC," Carrillo said. 

Keep checking back for updates on this developing story.