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Politics & Government

Redevelopment Fight Continues

Opponents of yesterday's state supreme court ruling at work on legislation to restore agencies.

Wasting no time since today’s state Supreme Court ruling, plaintiffs challenging the state’s authority to abolish redevelopment agencies have called for a new law restoring them and say they may have a draft piece of legislation together as soon as next week.

“Time is of the essence, and the future of California's economy is at stake,” said Jim Kennedy, interim director of the California Redevelopment Agency, which mounted the legal challenge with the California League of Cities.

The court upheld the state’s authority to dissolve local redevelopment agencies, but struck down a law that would allow agencies to continue on by making payments to the state.

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Critics, including El Cerrito Mayor Bill Jones, say the one-two punch will knock out cities’ mechanism for funding capital projects and providing affordable housing in blighted areas.

"It wouldn't surprise me if redevelopment agencies throughout the state get together to draft a constitutional amendment restore redevelopment, bypassing the legislature altogether," he said.

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Both laws were enacted in July to help close the state's $25 billion budget deficit.

Proponents, including taxpayer advocate groups and Gov. Jerry Brown, cheered the ruling, saying the money can now flow into education and public safety.

But for local leaders, the rulings sanction a brazen money grab -- and one that may not even pay off.

“They’re in for an awakening,” said Jones. “They aren’t going to get the money they think they will. They'll have to pay off bonds that have been taken out for projects. We’ll see how much actually goes to education and public safety."

Whether Brown would sign legislation to restore the agencies is a question for another day. Today, mayors with vital projects on the docket say they have little choice but to push for it.

"Without immediate legislative action, the decision effectively eliminates funding for affordable housing statewide," Oakland Mayor Jean Quan said in a press statement.

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