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What Happens If Cities Don't Cough Up Their Redevelopment Funds?

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A couple of weeks ago a judge ruled that California was allowed to seize city community redevelopment agency funds, and seize they did--payday was May 10. But some cities were like, "nuh-uh." According to the League of California Cities, two Bay Area cities and Monrovia refused to hand over funds (a fourth, Placentia in Orange County, made a small "good faith payment"). Monrovia owed $3 million to the state, and now they pay the price for not paying: their redevelopment agency cannot operate. According to the San Gabriel Valley Tribune, the city is hoping an appeal will overturn the latest state-favoring ruling, but until and unless that happens, "the city's redevelopment agency will be frozen." The League of California Cities is one of those looking to put a measure on the ballot this November that would block the state from raiding local development funds.
· After spurning the state, Monrovia's redevelopment agency faces the 'death penalty' [SGVT]