Major Wielder of Eminent Domain Power May Soon be Eliminated

Governor Jerry Brown has a $25 Billion hole in the California budget to fill, which he proposes to accomplish through a combination of spending cuts and an extension of current temporary tax increases. A significant portion of the package includes eliminating the state's 425 redevelopment agencies and enterprise zones. The redevelopment agencies are a major player in the eminent domain arena, acquiring land through eminent domain and then developing the property for commercial and residential use.

Vocal opposition to the proposal is coming from a group of mayors from some of the state's largest cities, as well as the California Redevelopment Association (CRA). CRA is comprised of over 350 redevelopment agencies as well as more than 300 private sector companies as associate members including developers, banks, consultants and law firms involved in economic redevelopment.

CRA has mobilized against the Governor's proposal. At their website you can find a page of resources devoted to the issue, including press releases, calls to action, and even an hour-long webcast embedded on the page hosted by the CRA's Executive Director, General Counsel and chief lobbyist, urging their supporters to speak out against the Governor's proposal to members of the legislature.

The Governor's proposal to extend the temporary tax increases will have to be put before a vote of the people as a ballot measure. Legislative proposals such as the elimination of the redevelopment agencies will be addressed through the legislature. Although the state's senate and assembly can expect strong, organized opposition to the proposal, it remains to be seen whether job creation will win out over health care advocacy, or if every corner of the government will share in these painful cuts before the state's budget turns around.

For advice and representation from experienced Southern California eminent domain attorneys, contact Fisher & Talwar online or call us at (213) 891-0777.