Court Rules to Kill Redevelopment Agencies

California's high court ruled today that California's redevelopment agencies can be dissolved by the legislature, but the state cannot force those agencies to make payments to other government funds,  Faced with a continuing budget shortfall, California legislators earlier this year passed a law dissolving local redevelopment agencies in an attempt to save money.

Another law, however, gave the agencies a chance to continue operating, on the condition that they pay $1.7 billion this fiscal year and $400 million each year thereafter to schools, transit and fire districts. The court also found that the dissolution law "is a proper exercise of legislative power." The funding law, however, violates the California constitution, it said in the ruling.

This ruling should stop work on several projects including 800 K Street that needs redevelopment funds to break ground.  and East End Gateway 2 and 3 in which CADA owns the land.