By Patty Lane, Katie Orr and Alison St John
The California Supreme Court today upheld a new law that will abolish community redevelopment agencies, dealing a blow to San Diego city officials who tried to keep their agency open.
The state’s high court also struck down a companion statute that would have allowed local governments to keep the agencies alive by making payments to the state.
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San Diego Councilman Todd Gloria called the ruling “the worst possible outcome.” The move effectively kills the more than 400 redevelopment agencies in the state and Gloria said this could devastate numerous projects in the city.
The agencies not only fund major building projects, like proposed new football stadiums in downtown San Diego and Los Angeles, but spend 20 percent of their income on affordable housing.
“This was the worst case scenario for San Diego and our neighborhoods that have redevelopment,” Gloria said. “I’m thinking specifically of neighborhoods like City Heights, who have utilized redevelopment to turn that neighborhood aroundand bring in essential services like a police substation, a library and the first supermarket.”
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Supporters of the laws passed by the legislature earlier this year, including Gov. Jerry Brown, say the money is better used to fund schools and other municipal functions during tight budgetary times.
Click here to read the full report and listen to Todd Gloria on KPBS Midday Edition
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