C.A. 3rd;
C075897

The Third Appellate District affirmed a judgment. The court held that a city's agreement with its former redevelopment agency did not create enforceable obligations.

After Governor Brown announced his intention to dissolve redevelopment agencies, but before the legislation passed, the City of Galt entered into an agreement with its former redevelopment agency under which the agency agreed to finance several parts of the city's redevelopment plan, totaling more than $22,000,000. To obtain money for the financing, the agency issued tax allocation bonds, which were to be repaid using tax increment revenue. Before the dissolution of the agencies was signed into law, the city and the agency filed a complaint to validate the agreement. No one responded to the complaint, so the trial court entered a validation judgment. The subsequently enacted dissolution law rendered unenforceable any agreement between a local agency and its former redevelopment agency during a specified period of time before dissolution took place. The Department of Finance (DOF) determined that the city's agreement fell within this provision and was unenforceable.