In January, 2011, the Governor announced his intent to eliminate redevelopment agencies as a way to help balance the State budget. The Legislature then enacted and the Governor signed Assembly Bill X1 26 (“AB X1 26”) and Assembly Bill X1 27 (“AB X1 27”). These bills took effect on June 29, 2011.
AB X1 26 immediately suspended all new redevelopment activities and incurrence of indebtedness, and dissolves redevelopment agencies effective October 1, 2011. AB X1 27 allowed a city or county that had a redevelopment agency to avoid dissolution by adopting an ordinance agreeing to make specified payments to reduce the State budget deficit.
A Petition for Writ of Mandate was filed in the Supreme Court of the State of California on July 18, 2011 (California Redevelopment Association, et al. v. Ana Matosantos, et al., Case No. S194861), challenging the constitutionality of AB 26 and AB 27 on behalf of cities, counties and redevelopment agencies and requesting a stay of enforcement. On August 11, 2011, and August 17, 2011, the Supreme Court stayed portions of AB X1 26, and stayed AB X1 27 in its entirety during the pendency of the matter.
On December 29, 2011, the Supreme Court issued its final decision in the aforesaid litigation, upholding AB X1 26, invalidating AB X1 27, and extending all statutory deadlines under AB X1 26, essentially dissolving all redevelopment agencies throughout the State effective February 1, 2012.
AB X1 26 provides that the City will serve as the “successor agency” to the Agency and responsible for the wind down of the Agency’s affairs. The activities of the City, as successor agency, will be overseen by an oversight board, comprised primarily of representatives of other affected taxing entities, until such time as the debts of the Agency are paid off, all Agency assets liquidated and all property taxes are redirected to local taxing entities. For more information, please see the "Assembly Bill 26 and the formation of Oversight Boards" document located in the "downloads" section of this page.
Development Services Department
A non-profit corporation which works to stimulate and manage economic growth in El Dorado, Nevada, Placer, and Sierra counties. Its primary goal is to alleviate unemployment and underemployment by expanding industrial, resource, and small business development by preserving the quality of life in the Sierra Nevada Foothills.
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