Redevelopment agencies in California will have their day in court this fall, and a decision on whether or not the 398 active entities will be allowed to continue operations will reportedly be made by January.
The state Supreme Court will hear a case filed by the California Redevelopment Association and a group of cities, including San Jose, challenging the legality of legislation that is designed to repurpose local tax dollars.
As part of formulating his budget, Gov. Jerry Brown signed a law that requires redevelopment agencies to fork over money totaling $1.7 billion. Many agencies have cried foul, saying they are being held hostage and that the law goes against Prop 1A and Prop 22. Both propositions—passed in 2004 and 2010, respectively—are designed to protect local funds from going to the state.
In anticipation of Brown’s actions, many cities jumped into action, dedicating money to projects, paying off bills or even moving properties into new shell organizations. San Jose grouped properties surrounding HP Pavilion that have been valued at roughly $24 million in the hopes of building a new baseball stadium for the Oakland A’s.