Court to Rule Thursday on New Redevelopment Laws

The California Supreme Court plans to issue a ruling Thursday morning on the legality of two new laws regarding redevelopment agencies, a decision that will  have major ramifications for Lemon Grove.

The court is considering whether the laws, passed by the Legislature earlier this year, are invalidated by Proposition 22, which bars the state from seizing local tax money. Redevelopment agencies are funded by the increase in tax revenue created by projects in their areas.

One statute forces redevelopment agencies to close, while the other allows local officials to keep them open if they make payments to the state.

Referring to the laws as ransom and extortion, the Lemon Grove City Council had little choice but to . Not doing so, said City Councilmember Jerry Jones, would hamstring future councils.

“This is ransom due by the hostage takers—to use nonlegal terms for this,” said City Attorney James Lough.

City staff estimates the payment will be $521,000 in its first year. City Manager Graham Mitchell says the annual payment will adjust in subsequent years, starting at $123,000 in 2012-2013 and increasing by $2,000 to $3,000 each year reaching $197,000 in 2036-2037.

Supporters of the laws, including Gov. Jerry Brown, say the money is better used to fund schools during the current tight budgetary times.

Lemon Grove joins San Diego and many other local jurisdictions who chose to pay the state to keep their agencies open, but doing so reduces their ability to fund future projects.

—City News Service