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Assembly Bill 1.26, the "Dissolution Act," and Assembly Bill 1.27, the "Alternative Redevelopment Program Act," were enacted on June 28, 2011, to significantly modify the Community Redevelopment Law (Health and Safety Code 33000 - the "Redevelopment Law"). On August 11, 2011, the California Supreme Court agreed to review the California Redevelopment Association's and League of California Cities' petition challenging the constitutionality of the Dissolution Bill and the Alternative Redevelopment Program Act. On December 29, 2011, the California Supreme Court ruled that the Dissolution Act is largely constitutional and the Alternative Redevelopment Program Act is unconstitutional.
Dissolvent of Redevelopment AgenciesThe Court's decision means that all California redevelopment agencies will dissolve on February 1, 2012, pursuant to the Dissolution Act. In accordance with the Redevelopment Law, the City previously authorized and created a redevelopment agency known as the Redevelopment Agency of the City of Watsonville, a public body, corporate and politic (the "Agency"), for the purposes of carrying out redevelopment activities within the City.
Successor Agency According to Redevelopment LawThe Dissolution Act provides that the city that authorized the creation of the redevelopment agency shall be the "successor agency" to the dissolved redevelopment agency unless the city elects not to serve as the successor agency under Section 34173 (d)(1) of the Redevelopment Law. Section 34176 (a) of the Redevelopment Law provides that the city that authorized the creation of the redevelopment agency may elect to retain the housing assets and functions previously performed by the former redevelopment agency.
The City intends to, and shall, serve as the successor agency for the Agency in accordance with Section 34171 (j) and Section 34173 of the Redevelopment Law. The City desires to elect to retain the housing assets and functions previously performed by the Agency in accordance with Section 34176 of the Redevelopment Law.