State Supreme Court Upholds Law Eliminating Redevelopment Agencies

The ruling from the California Supreme Court upheld a state law that abolishes redevelopment agencies and struck down a second piece of legislation that allowed the agencies to pay to stay alive.

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.

But the Los Angeles Times says the decision represents the worst possible outcome in a legal challenge initiated by the CRAs.

Mayor Antonio Villaraigosa

Patch has contacted the Community Development Agency of the City of Los Angeles and Los Angeles City Council president Eric Garcetti for their reactions.

Learn more about "Rethinking Glendale Boulevard," a community workshop scheduled for Jan. 14 about an area of Echo Park that some had hoped would come under CRA jurisdiction. 


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