Redevelopment agencies in California ceased to exist following the December 29, 2011, California Supreme Court decision in California Redevelopment Association v. Matosantos. Effective February 1, 2012, Successor Agencies “assumed all authority, rights, powers, duties and obligations previously vested with the former redevelopment agency.” Seven cities across California elected not to become a Successor Agency.
Kosmont Companies (“Kosmont”) was retained by the California Department of Finance to provide staff support to six of the seven agencies – known under AB 26 as the Designated Local Authority (“DLA”). Since 2012, Kosmont assisted multiple DLAs and Successor Agencies (“SAs”) with the preparation of Long-Range Property Management Plans that govern the use and disposal of all former redevelopment agency (“RDA”) properties. Kosmont has or is providing staff support to the DLA Board as the SA in the cities of Los Banos, Mendota, Merced, Pismo Beach, Riverbank, and Santa Paula. These services are based on Kosmont’s expertise pertaining to pre-existing RDA contractual obligations, reserves management, enforcement of former RDA rights to protect and benefit bondholders, and preparation of administrative budgets and Recognized Obligation Payment Schedule (“ROPS”), as well as other dissolution tasks and requirements. Effective July 1, 2018, all local Oversight Boards roll-up to a Consolidated Countywide Oversight Board (“OB”) for all SAs in the County. Kosmont is continuing to provide staff support services to the Merced Countywide Consolidated OB.
For additional information on the redevelopment dissolution process and the full text of AB 26, AB 1484 and SB 107, please visit http://www.dof.ca.gov/redevelopment.
Mark Persico, DLA & Oversight Board Staff, (424) 297-1070
Joy Otsuki, Leibold, McClendon and Mann, PC, Legal Counsel, (949) 585-6300