Politics & Government

CA High Court to Review Redevelopment Challenge

The state's high court will hear a case filed by city redevelopment agencies that challenges a recent state law forcing them to pay millions to California to keep operating.

The California Supreme Court agreed Thursday to hear a case challenging a recent law that forces city redevelopment agencies to pay millions to the state in order to keep operating.

Filed by the California Redevelopment Association (CRA), to force redevelopment agencies to fork over millions to help fund state education obligations.

Sierra Madre's City Council recently decided to opt in to the program, which requires cities make one large payment upfront, followed by yearly payments in order to keep their CRA tax increment.

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Redevelopment agencies are government agencies that help create private sector jobs through economic development - eliminating them or forcing them to use local tax dollars to stay intact is a major part of the budget the state legislature passed in June.

Find out what's happening in Sierra Madrewith free, real-time updates from Patch.

The high court agreed to hear the case Thursday and also issued a partial stay that allows redevelopment agencies to withhold payment until the case is resolved, according to the CRA.

"We’re very gratified that the California Supreme Court has agreed to take our case, issued the stay we requested to preserve the status quo, and that it is moving forward on an expedited basis,” said Chris McKenzie, Executive Director of the League of California Cities, in a written statement.

Some examples of local CRA spending can be seen in the following stories:


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