RDA Supporters Take State to Court

The League of California Cities, the California Redevelopment Association and the cities of San Jose and Union City announced today they filed a petition with the California Supreme Court challenging the constitutionality of two bills that effectively dissolves redevelopment agencies.

AB 1x26 eliminates redevelopment agencies and AB 1x27 which allows a city to keep their RDA agency, but will be required to pay their share of $1.7 billion this year and $400 million annually, officials said. The bills were passed as part of the state budget in June.

Both bills have been the subjects of heated debate as cities and business organizations say they would drastically cut the funds cities use to develop and eliminate blight. It will also kill jobs by reducing the ability of local agencies to to hire contractors for projects, business officials said.

Cities had been gearing up for a fight even before Governor Jerry Brown signed the budget. The Loma Linda City Council voted during a recent council meeting to take an active part in the lawsuit if and when it was filed.

The Redlands Chamber of Commerce has also thrown their support behind the lawsuit.

The bills also defy Proposition 22, passed last year by voters, Loma Linda City Attorney Richard Holdaway told the council at the June 28 meeting. Prop. 22 prohibits the State from taking funds used for transportation or local government projects and services, according to legislative analysts.

“They are essentially bypassing the proposition by getting rid of the redevelopment agencies,” Holdaway said during the meeting.

The lawsuit requests the California Supreme Court issue a stay to prevent the legislation from going into effect until the Court can rule on the merits of these claims, according to a news release by the League of California Cities.

If the stay is not granted, the agencies will be dissolved Oct. 1. The petition asks the Supreme Court to make an initial ruling on the request for stay by Aug. 15, according to the news release.

"California voters overwhelmingly passed Prop. 22 just eight months ago to stop State raids, shifts and diversions of local redevelopment funds," said Chris McKenzie, executive director, League of California Cities. "The Governor and legislature have blatantly ignored the voters and violated the State Constitution. We must now go to the Supreme Court to uphold the voters' will and the Constitution by overturning this unconstitutional legislation. We are confident the Courts will uphold the will of the voters."