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 CRA 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.

During the summer, the met for a special session to adopt Resolution 450, which allows for the approval of an Enforceable Obligation Payment Schedule (EOPS) to be provided to the state Department of Finance by the city's Community Redevelopment Agency (CRA).

On Aug. 9,  The vote was reluctantly unanimous, even swaying Council Member MaryAnn MacGillivray, who has, on many occasions, voiced her opposition to the CRA’s existence.

Patch has reached out to city officials for comment. Check back for any updates.