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Public Agencies Can Use Mello-Roos Act Financing To Acquire Property By Eminent Domain
Can the Mello-Roos Community Facilities Act of 1982, Government Code section 53311, et seq. ("Mello-Roos Act"), be used to finance acquisition of property by eminent domain? That is the question the Court of Appeal recently addressed in the case of Golden State Water Company v. Casitas Municipal Water District (April 14, 2015, 2d Civil No.
Enhanced Infrastructure Financing District Legislation Brings Back Tax Increment Financing to California
Tax increment financing is back in California. Tax increment makes its comeback through the passage of Senate Bill 628 (Beall), legislation authorizing the creation of Enhanced Infrastructure Financing Districts (EIFDs), which was signed into law by Governor Brown on September 29. The new legislation provides local governments an intriguing new tool to assist in the economic development of their communities, although it is not expected to generate close to the level of tax increment revenues that redevelopment did during its heyday.
Court Authorizes City Subsidy to Car Dealer Two Years After Dealer Relocates to City
Juan Lou Gonzales ("Gonzales") owned a Saturn dealership in Palmdale. During the recent recession, General Motors ("GM") stopped making Saturn cars. As a result, Gonzales sought and was conditionally awarded a Chevrolet franchise from GM. GM’s conditions required that Gonzales open his new dealership on a short deadline within a specific geographic area. (City of Palmdale v. City of Lancaster (February 6, 2014 (B243802) --- Cal.Rptr.3d ----, Cal.App. 2 Dist.).
Cities Entitled to Pre and Post Judgment Interest for Tax Administration Fees Improperly Calculated and Withheld by County
Seven cities brought a lawsuit against a county over the calculation of a fee that the county charges for the collection and distribution of property taxes to each city. A trial court entered judgment in favor of the cities and ordered the county to pay prejudgment and postjudgment interest. The court of appeal held that the trial court did not err in awarding prejudgment and postjudgment interest but that a new law changes the rate of interest as of January 1, 2014. (City of Clovis v. County of Fresno (January 16, 2014, F060148) --- Cal.Rptr.3d ----, Cal.App. 5 Dist.).
“Pay First, Litigate Later” Doctrine Applies to Local Governments: Taxpayers Required to Pay Local Assessments Until Resolution of Tax Litigation
The Water Replenishment District of Southern California (“District”) protects groundwater quality in Los Angeles County groundwater basins from overuse and saltwater intrusion. The District finances its efforts through an annual assessment on groundwater pumpers. The City of Cerritos (“City”) sued the District, seeking money damages and claiming that the District failed to levy its assessment according to Proposition 218 requirements. The City won the Proposition 218 portion of the lawsuit, but the monetary relief portion of the case has yet to be resolved.