Search
 

New State Law Delays RDA Asset Sales

SANTA MONICA, CA-AB 1484 now requires RDA successors to prepare a to-be-approved 'property-management plan' before selling assets for redevelopment, but GlobeSt.com learns that there are options.

By Carrie Rossenfeld | Updated on August 15, 2012

SANTA MONICA, CA-One of the most important assets of the approximately 400 RDAs in California that were formally terminated in February was the commercial real estate they owned. Many investors and developers were looking forward to the opportunity to buy and develop this real estate, and in fact, the original AB 26 law that terminated the agencies stated that all real estate was to be sold expeditiously. However, nearly two months ago the law was changed, creating further delays in the sale of successor agencies’ land and properties statewide. The new law, AB 1484, states that each RDA successor is required to prepare a “property-management plan” to be approved by the State Department of Finance, determining what land will be retained by the agencies and what land will be sold.

“In my opinion, this is unfortunate because it does allow successor agencies to retain valuable land that could be sold, and the money could be transferred to the taxing authorities, cities, school districts and counties,” Richard H. Close, a partner with local law firm Gilchrist & Rutter and member of the Los Angeles Redevelopment Agency Dissolution Oversight Board, tells GlobeSt.com. In June, Close had told GlobeSt.com that CR-LA had recommended roughly 600 redevelopment projects to the state Department of Finance, and all of them had been approved by the Department to move forward. The new law affects between $2 billion and $3 billion worth of assets statewide that are still awaiting their fate.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.