Welcome to the Morgan Hill
Redevelopment Agency
Archive Information Site.

The Governor and Legislature have passed new laws that eliminate redevelopment agencies as of October 1, 2011 unless the sponsoring city agrees to pay a ransom year after year. Although we believe that the legislation violates the State Constitution as amended by the voters just last fall (Proposition 22), we must evaluate the consequences of all the options. The first year of the ransom payment would be $9.8 million, followed by annual payments of $2.3 million.

On July 20, 2011, the City Council adopted an ordinance agreeing to the Alternative Voluntary Redevelopment Program which in essence allowed the Agency to continue its operations and uses its assets and tax increment revenue for redevelopment purposes. This action was in response to AB1X 26 which would have abolished the Morgan Hill Redevelopment Agency effective October 1, 2011 unless it complied with AB1X 27 and agreed to pay the ransom or voluntary payment.

However, on August 11, 2011, the California Supreme Court issued a partial stay on the effectiveness of ABx1 26 and ABx1 27 until the Court can rule on the constitutionality of the two bills. As a result, Sections 34161 through 34167 of ABx1 26 remain in effect. These sections call for the suspension of non-administrative redevelopment agency activities and commencement of some wind down activities including Agency Board adoption and filing of an Enforceable Obligation Payment Schedule (EOPS) by August 27, 2011. After this date, an Agency may only pay for obligations listed on the EOPS unless it is necessary to meet bonded indebtedness.

With the Court's stay on ABx1 27, even though Morgan Hill opted-in and adopted a continuing ordinance, the Agency adopted its EOPS in order to ensure that it has the clearest authority to make payments on its obligations and commitments (i.e., indebtedness) after August 27, 2011. The EOPS was adopted by the Agency at its August 24, 2011 meeting.

On December 29, 2011, the California Supreme Court upheld the constitutionality of AB 1X 26 (the "Dissolution Act"). This decision means all California redevelopment agencies, including the Morgan Hill Redevelopment Agency, are dissolved on February 1, 2012.

On January 18, 2012 the Morgan Hill City Council voted to become the successor agency to the Morgan Hill Redevelopment Agency.

For additional information see the Successor Agency to the Morgan Hill Redevelopment Agency website.

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Since 1981, the Morgan Hill Redevelopment Agency has been dedicated to improving the quality of life in Morgan Hill that residents and visitors have come to love. The Agency works to remove blight and breath new life into deteriorated areas of the city. The Agency is also responsible for many of the improvements to the city's infrastructure (street and sewer improvements), renewal of the downtown area, construction of community facilities, affordable housing, and economic development.