Case tackles issues about redevelopment agencies' continuing obligations after their dissolution
In a recent case, a California court found that because Oakland City was only a contracting agency under the California Public Employees’ Retirement Law, the City alone had “legally enforceable” payment obligations with respect to redevelopment employees’ pensions.
The case of City of Oakland et al. v. Department of Finance et al. discussed the Dissolution Law, which dissolved redevelopment agencies (RDAs). The law recognized that certain agreements and loans linked with redevelopment projects would require continued funding. Under the law, the department of finance and state controller would oversee the payment of the former RDAs’ enforceable obligations.
The Successor Agency to the Oakland Redevelopment Agency submitted its recognized obligation payment schedule to the finance department, which rejected the following items:
In response to the denials, the City and the Successor Agency asked the superior court for a writ of traditional mandate. They sought to compel the finance department to pay the denied items.
The trial court, ruling in the finance department’s favor, found that the...
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