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Lawsuit challenges new redevelopment legislation

by Melissa Corker, published on July 18, 2011 at 5:54 PM

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The League of California Cities and the California Redevelopment Association filed a petition in the California Supreme Court Monday challenging the constitutionality of recent legislation affecting redevelopment agencies in the state.

Assembly Bills AB1x26 and 27 were signed into law along with the state budget in June. According to the petition, both violate Proposition 22, a constitutional amendment passed by California voters in November 2010.

“AB1x26 eliminates redevelopment agencies,” Kathy Fairbanks, California Redevelopment Association representative, said in a press release.

“AB1x27 allows agencies to continue to exist (albeit on life support) if they agree to pay their share of $1.7 billion this year and $400 million annually in perpetuity,” she said.

The lawsuit requests a stay to prevent the legislation from going into effect until the court can rule on the merits of the case.

According to the petition, Proposition 22 was passed by voters to “prohibit State politicians in Sacramento from seizing, diverting, shifting, borrowing, transferring, suspending, or otherwise taking or interfering with” revenue dedicated to local government.

Chris McKenzie, executive director of the League of California Cities, said Gov. Jerry Brown and the Legislature have “blatantly ignored the voters.”

“We must now go to the Supreme Court to uphold the voters’ will and the Constitution by overturning this unconstitutional legislation,” McKenzie added.

John Shirey, executive director of theCalifornia Redevelopment Association, said, “Since the budget bills passed, many redevelopment agencies have notified us that they cannot afford the ransom payment and will cease to exist. This legislation is a job killer and an opportunity killer for many local communities in need.”

Cities have until Oct. 1 to notify the state that they are going to make the required payments to continue their redevelopment activities, according to the terms of AB1x27.

The petition filed on Monday asks the Supreme Court to make an initial ruling on the request for stay by Aug. 15.

Melissa Corker is a Staff Reporter with The Sacramento Press. Follow her on Twitter @MelissaCorker.

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