When the City of Los Angeles voted against becoming the Successor Agency to the Community Redevelopment Agency of Los Angeles (CRA/LA), it fell to Governor Jerry Brown to choose the three local residents to fill the roll of Successor Agency. Under the provisions of ABx1 26, which dissolved all California redevelopment agencies as of February 1, the new appointees will form a “designated local authority” that will assume certain duties associated with the terminated CRA/LA. These duties include disposing of agency assets, paying existing bond debt and assuming control over the previous redevelopment agency staff.
For more information about each of the appointees, as well as the appointees in Merced, Stanislaus and Ventura Counties, please see the Governor’s press release here.
As everyone is now so keenly aware, the California Supreme Court upheld Assembly Bill ABX1 26 (“AB 26”), which provides for the termination of all California redevelopment agencies (“RDAs”). On February 1, 2012, RDAs were effectively, dissolved and all Enforceable Obligations were transferred to Successor Agencies. For those real estate stakeholders in existing relationships with RDAs – specifically those holders of notes or bonds tied to a redevelopment project, a development agreement with an RDA, or a loan with the RDA, or an owner of property located in an RDA project area that is under contract to be acquired – the impact can be immediate.
Please see Goodwin Procter’s white paper, “Real Estate Development and the Demise of California’s RDAs” for information on AB 26 and the aftermath of the California Supreme Court decision.