The California Supreme Court upheld the Legislature's -- and the governor's -- action earlier this year to abolish some 400 redevelopment agencies across California, then struck down the accompanying law that would have allowed the agencies to remain in existence if they paid millions of dollars in fees.
From the Chronicle's Marisa Lagos: "The California Supreme Court dealt a deathblow to the state's 60-year-old redevelopment program, ruling Thursday that lawmakers had the authority to eliminate the economic development program and striking down a law that would have allowed the agencies to exist in smaller form."
"The ruling was the worst-case scenario for cities, which argued they needed the program to spur economic development in blighted areas and create jobs - but it was a win for Gov. Jerry Brown."
"Brown argued that the state should no longer fund the program because those public dollars could be better spent on education and law enforcement. He praised the high court's decision..."
"The ruling will force redevelopment agencies to put the brakes on proposed projects, such as San Francisco's Mid-Market revitalization, and could cast uncertainty on approved projects, including the city's redevelopment of the Hunters Point Shipyard and Mission Bay area. That's because while state law allows redevelopment agencies to finish approved projects and pay off existing debt, the court ruling could spook bond investors needed to fund those projects."
What happens next? Nobody is sure -- the locals see a loss of money and the agencies want the Legislature to reinstate them. The Mercury News' Howard Mintz, who first reported that the ruling loomed Thursday, tells the tale.
"Dealt a death blow in the courts, local governments now plan to urge the Legislature to salvage redevelopment agencies. But given that any such effort would need backing from a governor who has soured on redevelopment taking money from schools, counties and state services, saving the state's nearly 400 agencies from extinction may be a long shot."
"And most redevelopment experts agree there is no local solution, given that cash-strapped cities and counties do not have a pot of money comparable to the property taxes that had poured into redevelopment coffers to pay for urban renewal, affordable housing and other projects."
"Legislative leaders were cautious Thursday about what may unfold next for redevelopment. Assembly Speaker John Perez, D-Los Angeles, conceded the ruling was a "mixed result," and state Senate President Pro Tem Darrell Steinberg, D-Sacramento, said "all viable options" for local economic development should be explored."
"There's lots of play in the joints for the Legislature to act," said Steve Mayer, the lawyer for the California Redevelopment Association. "This result is not what the Legislature intended."
The high court's decision wasn't the onloy major ruling on Thursday: Down in Fresno, a Superior Court judge invalidated a portion of California's landmark law to curb climate-changing carbon emissions.
From the Fresno Bee's John Ellis: "U.S. District Judge Lawrence J. O'Neill ruled that California's Low Carbon Fuel Standard violated the U.S. Constitution's Commerce Clause."
"The standard aims to gradually cut the carbon content in gasoline 10% by 2020 and replace up to 20% of the total gasoline used annually in the state with renewable fuels such as ethanol."
"Several groups -- including the Fresno-based Nisei Farmers League and the Fresno County Farm Bureau -- filed a lawsuit in December 2009 that challenged the state regulation, saying it violated the Commerce Clause by seeking to regulate farming and ethanol production practices in other states."
"A similar suit that involved oil production was filed last year by groups including the National Petrochemical Refiners Association and the American Trucking Association. It was later consolidated with the first lawsuit."
An unusual pairing: Democratic political strategist Steve Glazer, who ran Jerry Brown's campaign for governor and remains an unpaid political adviser, will serve as a consultant to the state Chamber of Commerce for next year's legislative elections.
From the Bee's Jim Sanders: "The chamber's JobsPAC, whose donors include insurance, oil, tobacco and pharmaceutical companies, spent more than $9 million statewide last year, including opposing the elections of Lt. Gov. Gavin Newsom, Attorney General Kamala Harris and Insurance Commissioner Dave Jones, all Democrats."
"The chamber itself attacked Brown during the campaign, though it became largely supportive of him this year. Glazer is expected to work only on matters involving Democratic candidates."
"Stutzman will be the chamber's Republican adviser, though in districts where no Republican candidate is competitive, he said Thursday, he could end up working on a Democratic campaign.In state Senate races last year, the chamber supported Republicans Sam Blakeslee and Anthony Cannella and Democrats Juan Vargas and Lou Correa."
"Earlier this year, when the chamber hired veteran Republican strategist Marty Wilson to oversee its campaign operations, chamber President Allan Zaremberg said in a statement that Wilson would "play a key role in CalChamber's focused efforts to identify and support pro-jobs candidates from both political parties who will work to improve California's economy."
In a closely watched race, Assemblyman Isidore Hall announced he won't seek a seat in Congress but instead will run for reelection -- a move that sets up a race between Laura Richardson and Janice Hahn.
From the LAT's Jean Merl: "The Compton lawmaker’s departure from the congressional race leaves a two-way contest between Reps. Janice Hahn of San Pedro and Laura Richardson of Long Beach."
"His pivot to an Assembly race also heads off a battle between two African American lawmakers, himself and Richardson, for a seat that was drawn over the summer by an independent redistricting commission to encourage the election of a black. Hahn, who is white, said she would seek reelection here because her home is in the new district, the 44th, and because the district includes most of the area she represented on the Los Angeles City Council before winning a special election to Congress in July."
"The district runs north from the L.A. harbor area to South Gate and is heavily Latino. No member of that group so far has announced an intention to run."
"The redistricting placed Hall within the same political boundaries as Assemblyman Warren Furutani (D-Gardena), who is running next month for the City Council seat Hahn gave up after winning the special election to replace retired Rep. Jane Harman (D-Venice)."