HomeMy WebLinkAbout2012-01-10 - AGENDA REPORTS - STATE LEG SB 659 (2)CITY OF SANTA CLARITA
AGENDA REPORT
Michael P. Murphy f�
SUBSEQUENT NEED City Manager Approval:
Item to be presented by:
DATE: January 10, 2012
SUBJECT: STATE LEGISLATION -SB 659
DEPARTMENT: City Manager's Office
RECOMMENDED ACTION
City Council adopt a "support" position for Senate Bill 659 (Padilla) or any similar
legislation extending the redevelopment dissolution deadline beyond February 1, 2012,
and transmit letters of support to the bill's author, Santa Clarita's State Legislative
delegation, appropriate Legislative committees, Governor Brown, the League of
California Cities, and the California Redevelopment Association.
BACKGROUND
On December 29, 2011, the California Supreme Court ruled in the redevelopment
litigation - CRA v. Matosantos and the Court upheld ABX 126 which eliminates all
redevelopment agencies throughout the state of California. The California Supreme Court
also struck down ABX 1 27. This bill would have allowed agencies to remain in operation
as long as they made payments to the state. Both of these bills were passed as part of the
2011-12 state budget.
As part of the Supreme Court's ruling, redevelopment agencies are to be dissolved on
February 1, 2012. If agencies are dissolved on February 1, 2012, successor agencies are
charged with winding down redevelopment agency activities, including dissolving and
liquidating assets, and eliminating workers available to carry out redevelopment
activities. Due to the lack of clarity in the state statutes, the dissolution process will likely
lead to substantial protracted litigation. The dissolution process could take years, leaving
no opportunity for local agencies to pursue or implement an alternative to redevelopment.
On January 6, 2012, Senator Alex Padilla announced he is working with members of the
Legislature to amend and pass SB 659 which would postpone the February 1, 2012,
dissolution deadline in order to preserve the ability to develop a new job creation and
neighborhood renewal program.
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If enacted, the legislation would postpone the February 1, 2012, deadline until
April 15, 2012, allowing for a responsible discussion about the future of redevelopment.
This bill came to the attention of the City Council after the agenda was posted for the
January 10, 2012, City Council meeting. The final bill language for the extension of the
dissolution deadline is currently being finalized and is expected to be in print later this
week.
Immediate action of the City Council is necessary as the Legislature will begin
deliberation on the extension legislation as early as this week with the intent of acting on
the bill prior to February 1, 2012.
The City of Santa Clarita and the League of California are committed to working with
lawmakers to create anew program that is appropriately focused on job -creation,
environmentally sustainable growth, affordable housing, and the elimination of blight and
economic disparity. City staff recommends a support position to the City Council on
behalf of SB 659 or any similar legislation extending the redevelopment dissolution
deadline beyond February 1, 2012.
ALTERNATIVE ACTIONS
1. Adopt an oppose position on SB 659
2. Take no position on SB 659
3. Other direction as determined by the City Council.