LAKE COUNTY — League of California Cities (LCC), the California Redevelopment Association (CRA) and the cities of San Jose and Union City filed a petition Monday with the California Supreme court challenging the constitutionality of AB1X 26 and AB1X 27.
The two redevelopment bills passed as part of the state budget in June.
AB1X 26 eliminates redevelopment agencies while AB1X 27 allows agencies to continue to exist if agencies agree to pay their share of $1.7 billion this year and $400 million annually in perpetuity.
The central claim in the lawsuit is that the bills violate Proposition 22, the constitutional amendment passed by 61 percent of the state”s voters last November. The lawsuit also requests the California Supreme Court to issue a stay to prevent the legislation from going into effect until the court can rule on the merits of these claims.
“What it means for the City of Clearlake at this time is that everything to do with using RDA money will most likely be put on hold until a judge determines whether the state can legally proceed,” Clearlake Mayor Joyce Overton said. “The City was just getting ready to move forward with projects that, for the first time, would improve our city. Now unfortunately, these projects will be put on hold.”
Overton said that if the state is successful, city projects such as the Old Highway 53/airport property shopping center and the redevelopment of Lakeshore Drive may not happen. “At this time it is undetermined what is going to happen if the state takes over our RDA; there is not only money involved but property as well,” she said. “I don”t believe the state has thought this out very well. They where looking at money and not the property that also belongs to RDA. What will happen if the state takes over the property on Old Highway 53? They will be able to sell it to whom ever they want, for what ever amount and we will have nothing to say about it.”
Prop. 22 was passed by voters to “conclusively and completely prohibit state politicians in Sacramento from seizing, diverting, shifting, borrowing, transferring, suspending or otherwise taking or interfering with” revenue dedicated to local government. The revenues protected by Prop. 22 specifically include the annual increments of property taxes allocated to California”s 400 redevelopment agencies.
“California voters overwhelmingly passed Prop. 22 just eight months ago to stop state raids, shifts and diversions of local redevelopment funds,” Chris McKenzie, LCC executive director, said. “The governor and legislature have blatantly ignored the voters and violated the State Constitution. We must now go to the Supreme Court to uphold the voters” will and the Constitution by overturning this unconstitutional legislation. We are confident the courts will uphold the will of the voters.”
According to the LCC, unless nullified, AB1X 26/27 will result in the elimination of redevelopment agencies or force “ransom” payments by local agencies that will greatly reduce the ability of local agencies to pursue revitalization and job-creation projects. The LCC stated the measures will kill hundreds of thousands of jobs and leave many communities with no opportunity to revitalize downtrodden areas with high unemployment, high crime and significant blight.
“Since the budget bills passed, many redevelopment agencies have notified us that they cannot afford the ransom payment and will cease to exist,” John Shirey, CRA executive director, said. “And those agencies that are planning on making the payment tell us that it will greatly diminish their ability to pursue vital projects. This legislation is a job-killer and an opportunity-killer for many local communities in need. Fortunately, voters passed Prop. 22 to put a stop to these types of destructive raids by the legislature. We must now go to the courts to protect our local communities and economies.”
Overton said she encourages community members to e-mail, call or fax Senator Noreen Evans and Assemblyman Wes Chesbro. “They both voted for the state taking of RDA money; this after we passed by 61 percent last year, a proposition stating and clarifying the state can no longer balance their budget with our local money,” she said. “They have ignored the peoples” vote. So, this is why the people of their districts need to contact them now; let them know we will not stand for them going against the voters. We the people are the government.”
Lake and Mendocino county contact for Chesbro is through the Ukiah Field Office at 311 North State Street, Ukiah, CA 95482; phone at 463-5770; or fax at 463-5773. Area contact for Evans is 200 South School Street, PO Box 785, Ukiah, CA 95482; phone at 468-8914; or fax at 468-8931.
Contact Denise Rockenstein at drockenstein@clearlakeobserver.com or call directly at 994-6444, ext. 14.
