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2007 Supplement to “Redevelopment in California”

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Preface to 2007 Supplement to Redevelopment in California

Since the publication of the 2004 (Third) edition of Redevelopment in California, and particularly in 2006, there have been a number of significant changes in the law affecting redevelopment. Many of these changes were in reaction to the United States Supreme Court decision in Kelo v. City of New London (2006) in which the court held, in a 5-4 decision, that private property could be acquired by eminent domain and conveyed to a private developer for the purpose of economic development. Although most legal experts agreed that Kelo did not affect the law in California, the case quickly spawned a number of legislative and initiative proposals around the country. The November 2006 ballot in California included Proposition 90, a wide-ranging initiative that would have prohibited the used of eminent domain for any private development. Even more significantly, it would have required that property owners be compensated for so-called "regulatory takings", such as height restrictions, environmental requirements, downzoning, etc. Proposition 90 was defeated by a narrow margin, however it is quite possible that a similar initiative may be proposed in the near future.

The state legislature also responded to Kelo. There are now additional requirements that apply to agencies that have eminent domain authority, as well as those who seek to add or extend such authority in their redevelopment plans. There are several other procedural changes for plan adoptions, amendments and mergers. Consequently, Chapter 3 of the book, Adoption of Redevelopment Plan, has been rewritten in its entirety.

The discussions in other chapters provide updates on the statutes, cases and regulations affecting the implementation of redevelopment plans, including eminent domain, affordable housing, prevailing wage requirements, environmental issues and military base reuse. In addition, the Supplement includes a revised Illustrative Time Schedule and Procedural Guide for the Adoption of a Redevelopment Plan, as well as a CD that contains the entire text of the Community Redevelopment Law for 2008 that can be downloaded and printed.