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CALIFORNIA EMINENT DOMAIN LAW BLOG

The End of Redevelopment Agencies Halts Projects in the Planning for Years, 1/9/12

By A.J. Hazarabedian

Governor Brown’s plan to abolish redevelopment agencies followed by the recent California Supreme Court decision to do just that is having a profound effect on planned redevelopment projects.

An article in the Sacramento Business Journal last week entitled, “Rancho Cordova won’t buy property through eminent domain,” explains how the city is now abandoning a project they have been planning for years.  The article states that not only will a current eminent domain lawsuit be dropped, but Rancho Cordova’s redevelopment agency will also be “forced to sell two other parcels that it had previously acquired for redevelopment,” related to the same project.

Cities and other government agencies will inevitably attempt some workarounds in order to enhance and improve their areas.  For Rancho Cordova, “the city’s leaders said they will continue to improve Folsom Boulevard through grants and other funding.”

Metro’s Gold Line Construction Authority is another agency scrambling to keep a project moving forward in the midst of last week’s decision.  The Pasadena Star News reported in their article, “Monrovia, Gold Line officials continue attempts to execute land deal for maintenance yard,” that Gold Line and City of Monrovia officials are trying to understand what to do about their previously negotiated deal.  For a planned maintenance yard to be built in Monrovia, the Metro Gold Line Construction Authority had negotiated a deal to purchase 14 acres of Monrovia Redevelopment Agency-owned land for $41.6 million.  In anticipation of last week’s ruling, the Authority recently voted to condemn the land in order to keep the project on schedule.  Under the eminent domain proceedings, the land could be purchased for $17.3 million.  The City of Monrovia stands to lose millions of dollars if the eminent domain proceeding moves forward rather than the previously negotiated deal.

Per the Pasadena Star News article, Monrovia officials are “working with lobbyists to draft potential legislation that would carve out the project from the new redevelopment rules.”

Stay tuned…

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COPYRIGHT © 2010 Arthur J. Hazarabedian, Esq.