Court allows state redevelopment money grab

The Supreme Court found that state lawmakers had a legal right to seize $1.7 billion in redevelopment money and at the same time, struck down a separate law that would allow the agencies to stay in business if they agreed to make large payments to the state.

The decision could kill the state’s 400 redevelopment agencies.

Read the full story by Howard Mintz at the Mercury News here.


Lisa Vorderbrueggen

  • John W

    “The decision could kill the state’s 400 redevelopment agencies.”


  • Rick K.

    The Supreme Court decision is the “blowback” that cities deserve for their irresponsible advocacy for Proposition 22 last year. Redevelopment agencies have diverted hundreds of millions of dollars from schools. The state government generously “backfilled” much of the diverted funds to schools while cities used the funds that otherwise would have gone to schools as a giant “slush fund” with few real strings (please, please don’t bring up the ‘affordable housing’ paid for by RDA’s – that ‘generosity’ was mandated by law). Then cities got greedy when the state reclaimed other local funds. The cities then pushed for a series of ballot measures to protect cities from such “raids,” culminating with Proposition 22. The cities tried to have it both ways: “State, stop taking ‘city’ funds, but you must subsidize our redevelopment boondoggles!” Many RDA’s did good things, but in general, good riddance.