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VVEDA Files Lawsuit Against the State of California
16-Apr-2012
News File    File 2

VVEDA FILES LAWSUIT AGAINST THE STATE OF CALIFORNIA
Named parties include the State Controller, State Finance Director and the San Bernardino County Auditor Controller

Victorville, CA – On April12th, 2012, the Victor Valley Economic Development Authority (VVEDA) filed a lawsuit in California Superior Court contending that the State of California’s adoption and implementation of  Assembly Bill x1 26 (AB x1 26) does not apply to VVEDA and that State and County administrators are erroneously interpreting provisions of AB x1 26. AB x1 26 was approved in the Legislature last year and signed into law by the Governor on June 28th, 2011 and causes for the dissolution of California redevelopment agencies. AB x1 26 was challenged by the California Redevelopment Association (CRA) and the League of California Cities based on constitutional grounds and upheld by the Supreme Court last December.

“VVEDA is filing its lawsuit based on grounds not included in the CRA complaint and raises question as to the applicability of AB x1 26 to VVEDA as VVEDA is not a redevelopment agency”, says Keith Metzler, Executive Director to VVEDA. The lawsuit contends that VVEDA was formed as a Joint Powers Authority under the Joint Powers Act, which is a separate and distinct provision of law from those laws that govern the formation of redevelopment agencies. The lawsuit also contends that because VVEDA was formed as a reuse agency to transact business in direct response to a federal military base closure program, that AB x1 26 should be preempted by federal authority.

In the lawsuit, VVEDA is seeking six (6) causes of action including Declaratory Relief, Injunctive Relief and a Writ of Mandate. If VVEDA prevails, it expects to have its redevelopment tax increment funding restored so that it can meet its contractual obligations to its member agencies and the Southern California Logistics Airport.

 


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