Existing law dissolved redevelopment agencies and community development agencies as of February 1, 2012, and provides for the designation of successor agencies to wind down the affairs of the dissolved redevelopment agencies, subject to review by oversight boards, and to, among other things, make payments due for enforceable obligations and to perform obligations required pursuant to any enforceable obligation. Existing law defines “enforceable obligation” for these purposes to include, among other things, loans of moneys borrowed by the redevelopment agency. Existing law also provides that agreements, contracts, or arrangements between the city, county, or city and county that created the redevelopment agency and the former redevelopment agency are invalid and not binding on the successor agency, and are not enforceable obligations, with certain exceptions, including for loan agreements entered into within 2 years of the formation of the redevelopment agency. Under existing law, a successor agency may enter or reenter into agreements with the city, county, or city and county that formed the redevelopment agency, subject to the approval of the oversight board, as provided.

This bill, notwithstanding the above-described provisions, would deem a loan agreement entered into between a redevelopment agency and the City of Atascadero between January 1, 1999, and January 1, 2003, inclusive, to be enforceable obligations for these purposes and provide that such a loan agreement binds the successor agency.

This bill would make legislative findings and declarations as to the necessity of a special statute for the City of Atascadero.