Redevelopment Agency Dissolution

On June 29, 2011, the California State Legislature approved and Governor Brown signed ABx1 26. As enacted, the bill dissolved redevelopment agencies as of October 1, 2011, but allowed them to continue if they agreed to "pay-to-play" by remitting to the State a certain dollar amount. A lawsuit challenging the constitutionality of the Bill was filed shortly after the Bill was signed, and the California Supreme Court imposed a stay pending its decision on the constitutionality of ABx1 26. On December 29, 2011, the Court struck down the "pay-to-play" provision but upheld ABx1 26. In its decision, it extended the dissolution date to February 1, 2012, and extended certain other ABx1 26 deadlines.

Successor Agency

ABx1 26 called for the creation of a Successor Agency for each dissolved redevelopment agency. The purpose of the Successor Agency is to implement the dissolution of the redevelopment agency in compliance with the law and to provide staff support to the Oversight Board. On January 11, 2012, the City Council approved Resolution No. 003-2012, electing to become the Successor Agency to the former Cloverdale Community Redevelopment Agency.

Oversight Board

ABx1 26 called for the creation of an Oversight Board to oversee the disposal, "expeditiously and in a manner aimed at maximizing value," of all assets and properties of the former redevelopment agency that were funded by tax increment. There are seven representatives on the Oversight Board, one member each appointed by: the County Board of Supervisors; the Mayor of the City that formed the redevelopment agency; the largest Special District within the former redevelopment agency's boundaries; the County Superintendent or Board of Education; the Chancellor of California Community Colleges; a member of the public (appointed by the County Board of Supervisors); and an employee representative. The Oversight Board is to be formed by May 1, 2012.