Lake Elsinore’s $7.7 Million RDA Question Gets TV Time

Lake Elsinore needs to pay the state $7,739,443 if it wants to keep its redevelopment agency afloat per legislation signed into law earlier this year that forces cities to pay out.

– and you can watch the justices ponder the question live in the comfort of your own home.

Today the state’s high court approved a live statewide TV broadcast and webcast of the redevelopment case on the public affairs network California Channel, www.calchannel.com. On Nov. 10 from 9 to 10 a.m., the high court will hear oral arguments in the case.

The state Supreme Court case (California Redevelopment Assn. v. Matosantos, S194861) involves the validity of Assembly Bill 26 X1 and Assembly Bill 27 X1, which were both signed into law by Governor Jerry Brown in June as part of the state budget package.

AB X1 26 eliminates redevelopment agencies and AB X1 27 offers an Alternative Voluntary Redevelopment Program in which municipalities pay the state to keep their local redevelopment agencies afloat.

Lake Elsinore Mayor Brian Tisdale -- along with city officials across the state -- has called the payout "a ransom."

On Aug. 11, the high court allowed AB X1 26 to remain in effect insofar as it precludes existing redevelopment agencies from essentially doing anything -- like incurring new indebtedness, transferring assets, acquiring real property, entering into new contracts or modifying existing contracts, entering into new partnerships, adopting or amending redevelopment plans, etc. -- but it stayed enforcement of both statutes in all other respects.

The court has stated it will expedite a speedy briefing schedule in the case and will render a final decision before Jan. 15, 2012.

The date is very timely. As part of the alternative voluntary program signed into law, the city of Lake Elsinore would need to pay half of the $7,739,443 by Jan. 15, 2012. The other half would be payable by May 15, 2012, according to city documents.

unanimously to move forward on a non-binding resolution to adopt an ordinance opting into the program.

To view the high court’s complete calendar, visit www.courts.ca.gov/documents/snovb11.pdf.