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CA Cities File Lawsuit to Stop $1.7 Billion Redevelopment Payments

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And here comes the lawsuit to stop the dissolution of city redevelopment agencies in California. Last month, Governor Brown approved a budget that would dissolve the 398 agencies (which partner with private developers to redevelop needy areas) unless they pony up a total of $1.7 billion. But voters last November approved a constitutional amendment "that prohibits the state from raiding local tax revenue," as described by the LA Times in its report on the suit. Now the League of California Cities and the California Redevelopment Association are claiming the dissolution is unconstitutional and have asked the state Supreme Court to consider the matter (it's the Supreme Court because the January deadline for payment is so close, and in fact the groups want the court to issue a stay by August 15 to keep the move from even going into effect). Previous reports had the Los Angeles CRA owing about $70 million in its first payment to the state, but the LAT says it would actually be about $100 million "and then up to $52 million annually" in order to stay alive. The CRA/LA will report to the City Council on possible next moves on August 3.
· Suit asks state Supreme Court to overturn state action targeting redevelopment agencies [LAT]
· New Budget Passes, Nabs $1.7B From Redevelopment Agencies [Curbed LA]