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City of Big Bear Lake v. Cohen, 076576

In a dispute arising out of the Dissolution Law  (Assembly Bill 1X 26), which immediately froze redevelopment agencies and provided that only existing enforceable obligations of the former redevelopment agency could be paid from the funds held by the redevelopment agency and from future tax increment revenue, the trial court's judgment is affirmed and modified where: 1) the contested transactions did not create enforceable obligations of the former redevelopment agency; 2) the Dissolution Law's invalidation of sponsor agreements does not violate the California Constitution; 3) it is irrelevant that City of Big Bear Lake claims it no longer possesses the funds it received from the former redevelopment agency; and 4) consistent with the decision in City of Bellflower v. Cohen (2016) 245 Cal.App.4th 438, the statutory remedy of offsetting City of Big Bear Lake's sales, use, and property taxes to capture the $2.6 million is unconstitutional.

Appellate Information

  • Decided
  • Published 2017/06/14




  • California Court of Appeal


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