Update: Court OKs State End to Redevelopment Agencies

Update, 10:42 a.m. Coronado officials have declined comment pending a reading of the ruling, reports a city spokeswoman.

Update, 10:25 a.m. Thursday: Court says state was within its rights to end redevelopment agencies, reports the Sacramento Bee, but also invalidates law allowing them to be reformed at a cost to cities. See full text in media box.

The California Supreme Court plans to issue a ruling Thursday on the legality of two new laws regarding redevelopment agencies, a decision that will have major ramifications for cities throughout the state.

The court is considering whether the laws, passed by the Legislature earlier this year, are invalidated by Proposition 22, which bars the state from seizing local tax money. Redevelopment agencies are funded by the increase in tax revenue created by projects in their areas.

One statute forces redevelopment agencies to close, while the other allows local officials to keep them open if they make payments to the state.

The bills, AB 1X-26 and AB 1X-27, will force  to the state with additional payments due in the coming years.

– City News Service