The Third District Court of Appeal has ruled that two "re-entry agreements" between Sonoma County and its former redevelopment agency are valid under the redevelopment wind-down law. The case marks the second time this year that the Third District has upheld re-entry agreements, suggesting that local governments are beginning to get the upper hand against the state Department of Finance in post-redevelopment litigation.
The case involves the county's desire to retain $14 million in tax-increment funds for two projects: street and sidewalk upgrades on Highway 12 north of Sonoma, and a mixed-use project on the site of an abandoned shopping center in the Roseland neighborhood of Santa Rosa.
As with the other recent case from Emeryville, the case turned in part on whether AB 1484, a 2012 law which eliminated re-entry agreements, should somehow be used to invalidate reentry agreements made before the law took effect. In addition, DOF made a series of narrow legal arguments that the Third District did not buy.