Redevelopment Continuation Status

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Redevelopment Continuation Status 

As part of the strategy to close funding gaps in the State’s budget, AB1X 26 and AB1X 27 were signed by the Governor on June, 29, 2011. AB1X 26 eliminates redevelopment and suspends redevelopment agency activities, including incurring indebtedness or entering into or modifying contracts. AB1X 27 establishes a new Alternative Voluntary Redevelopment Program that allows cities to “buy-back” their agency then continue their work improving communities. On August 15, 2011, the City Council approved Ordinance No. 11-2921, which re-established the Montclair Redevelopment Agency under the Alternative Voluntary Redevelopment Program. The second reading of the Ordinance occurred on September 6, 2011.

Because the City Council voted to re-establish the Montclair Redevelopment Agency, the Agency was not required by the aforementioned new laws to file an Enforceable Obligation Payment Schedule (EOPS) by August 28, 2011. This EOPS process was reserved only for those agencies that were not planning to opt-in to the Alternative Voluntary Redevelopment Program. However, as a result of the Supreme Court’s “modified stay” issued on August 17, 2011 the opt-in legislation was “stayed,” while the legislation requiring agency wind down was left in force. This change required the Montclair Redevelopment Agency to comply with the wind down provisions and adopt an EOPS on September 21, 2011.

For additional information, please contact Marilyn J. Staats, Deputy City Manager via email or by phone at (909) 625-9412.