Lawsuit Aims to Keep Redevelopment Agencies Alive

A coalition representing community redevelopment agencies filed suit in the California Supreme Court Monday alleging new laws that would require Los Angeles' community redevelopment agency to pay the state about $100 million in order to survive are unconstitutional, according to the City News Service.

The California League of Cities, the California Redevelopment Association and the cities of San Jose and Union City filed the petition. The suit also asks the court to prevent the laws from going into effect until judges can render a ruling on the merits of the case.

If the suit is unsuccessful, CRA/LA, the largest in the state, would be forced to pay an estimated $100 million to the state, based on a pro-rated formula of statewide property taxes in redevelopment zones.

The agency uses property taxes from designated zones around Los Angeles to help subsidize new building and renovation with the ultimate goal of revitalizing rundown neighborhoods.

Supporters argue the successful L.A. Live complex in a formerly blighted area of downtown is an example of what redevelopment agencies can accomplish.

“Our agency has many roles in L.A., including creating good jobs and affordable housing, historic preservation, environmental mediation, parks development, arts programs and more,'' CRA/LA Chief Executive Officer Christine Essel said.

Opponents, including Gov. Jerry Brown, argue redevelopment agencies siphon property tax dollars away from schools and public safety.

The lawsuit filed Monday alleges that two bills, AB 1X 26 and AB 1X 27, signed by Brown in late June, violate Proposition 22, a constitutional amendment approved by voters in November by a 61 percent-39 percent vote. The bills effectively abolish redevelopment agencies unless they agree to pay the state a combined $1.7 billion before January.

Backers of the suit argue that Proposition 22 prohibits the state from making such raids ``even during times of severe fiscal hardship.''

"California voters overwhelmingly passed Proposition 22 just eight months ago to stop state raids, shifts and diversions of local redevelopment funds,'' League Executive Director Chris McKenzie said. "The governor and Legislature have blatantly ignored the voters and violated the state constitution.''

"We must now go to the Supreme Court to uphold the voters' will and the constitution by overturning this unconstitutional legislation. We are confident the court will uphold the will of the voters.''

–City News Service

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