Publication

Legal Alert: California Supreme Court Kills Redevelopment Agencies. Now What?

Jan 13, 2012

by Sean Sherlock

California’s redevelopment agencies (RDAs) receive 12 percent of the state’s property tax revenue. In this economic climate, that put a bull's-eye on their heads. Upon taking office, Governor Brown pushed through legislation to abolish RDAs, so the tax increment revenue they receive can be used for other purposes – mostly education. In a political compromise, the legislature passed two bills – AB 1X 26, which abolished RDAs; and AB 1X 27, which permited municipalities to keep their RDAs if they remit certain “voluntary” payments into the state’s fund for education. The RDAs sought immediate Supreme Court review, asking the Supreme Court to invalidate both of the bills. On December 29, 2011, the Supreme Court handed down the RDAs’ worst nightmare – upholding AB 1X 26, and thereby abolishing the RDAs, while invalidating AB 1X 27, which was their lifeline. Ironically, the RDAs’ undoing was Proposition 22, a ballot initiative the RDAs had fought for and won just over a year ago.

[Read the full alert.]

About Snell & Wilmer

Founded in 1938, Snell & Wilmer is a full-service business law firm with more than 500 attorneys practicing in 16 locations throughout the United States and in Mexico, including Los Angeles, Orange County and San Diego, California; Phoenix and Tucson, Arizona; Denver, Colorado; Washington, D.C.; Boise, Idaho; Las Vegas and Reno, Nevada; Albuquerque, New Mexico; Portland, Oregon; Dallas, Texas; Salt Lake City, Utah; Seattle, Washington; and Los Cabos, Mexico. The firm represents clients ranging from large, publicly traded corporations to small businesses, individuals and entrepreneurs. For more information, visit swlaw.com.

©2024 Snell & Wilmer L.L.P. All rights reserved. The purpose of this publication is to provide readers with information on current topics of general interest and nothing herein shall be construed to create, offer, or memorialize the existence of an attorney-client relationship. The content should not be considered legal advice or opinion, because it may not apply to the specific facts of a particular matter. As guidance in areas is constantly changing and evolving, you should consider checking for updated guidance, or consult with legal counsel, before making any decisions.
Media Contact

Olivia Nguyen-Quang

Associate Director of Communications
media@swlaw.com 714.427.7490