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State Supreme Court Ruling Stalls Gold Line Deal

The city cannot execute an agreement to sell land to the Gold Line Construction Authority until a lawsuit against the state is resolved, according to City Manager Scott Ochoa.

State Supreme Court Ruling Stalls Gold Line Deal State Supreme Court Ruling Stalls Gold Line Deal

After finally hammering out an agreement to sell land to the Gold Line Construction Authority, the city will have to wait for a court ruling before actually executing it.

The stalled this week when the California Supreme Court issued a stay barring redevelopment agencies from executing transactions until is resolved, according to City Manager Scott Ochoa.

"It means that the City Council/Agency Board's consideration of the proposed land sale with the Gold Line Construction Authority (GLCA) is on hold," wrote Ochoa in his weekly report that was published Tuesday afternoon.

The city had that allowed it to pay off the state to keep its redevelopment agency intact. But just when that ordinance was set to take effect, the court's stay came down, Ochoa wrote.

"Well, the ordinance is now in effect...just in time to be stuck in the mud of the Supreme Court stay," he wrote.

The California Redevelopment Agency, which sued the state, has filed a motion asking the court to amend its stay to allow cities that enacted continuation ordinances to continue making deals, according to Ochoa. Ochoa wrote that the city hopes to get an answer from the court on the motion this week.

If the motion is denied, Ochoa has said that a decision in the case might not be reached by the high court until January.

Check back later for more on this breaking story.

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