The California Supreme Court's decision to strike down AB X1 27 and uphold AB X1 26 set off a frantic timeline by which redevelopment agencies essentially must preside over their own funerals while "successor agencies" take control of their assets and contracts. Since the Dec. 29 court decision, at least one legislative effort -- Senate Bill 659 -- and two lawsuits have tried to delay dissolution, but to no avail.

Among the roughly 400 redevelopment agencies that will shut down tomorrow, the vast majority have effectively elected to dig their own graves. That was one of the stipulations of AB X1 26, that cities may serve as their own successor agencies, which will oversee the wind-down of operations, liquidation of assets, and payment of outstanding obligations. 

UPDATE: Friday afternoon Superior Court Judge Lloyd G. Connelly refused to grant a stay against the dissolution of redevelopment, rejecting arguments advanced in two separate suits, led by the cities of Cerritos and Carlsbad. The ruling means that the dissolution of redevelopment will proceed Feb. 1 as ordered by the state Supreme Court.

Despite intense lobbying from supporters of redevelopment, Senate Bill 659, sponsored by Sen. Alex Padilla (D-Los Angeles) appears headed for defeat. Senate President Pro Tem Darrel Steinberg (D-Sacramento) yesterday told the Sacramento Bee, "It's not going to happen." 

With only a few days to go before the February 1 deadline to dissolve the state's redevelopment agencies, the Department of Finance has published a website describing the dissolution process as mandated by Assembly Bill X1 26. The site is intended to answer a host of questions that have arisen among many agencies and cities throughout the state. 

Last week bond rating agency Moody's took California's redevelopment bonds down a notch, and today fellow rating agency Fitch is expressing similiar concerns. 

Credit rating agency Moody's Investors Service downgraded by one notch all California tax allocation bonds rated Baa2 and above. Moody's is monitoring all other redevelopment bonds and may issue a downgrade in the future. 

Sen. Alex Padilla (D-Los Angeles) has introduced legislation that could give California's redevelopment agencies if not a reprieve then at least a stay of execution. Senate Bill 659 would push the dissolution date from Feb. 1 to April 15 in order to allow cities and agencies time to put their affairs in order -- and, presumably, to allow the Legislature to deliberate on a replacement for redevelopment before the agencies are dismantled and their employees laid off.

While cities around the state have been, reluctantly, agreeing to serve as undertakers for their respective redevelopment agencies, the Los Angeles City Council indicated this week that the city will not do so.