California Redevelopment Agencies were injected with a new breath of life on Thursday, as the State Supreme Court decided to hear a lawsuit being brought by California cities, the California League of California Cities, and the California Redevelopment Association.

The Court decided that there were significant enough legal questions that remain to be settled by the recent abolition and ransoming of redevelopment that it should take up the case on an expedited basis, hearing the case directly. The decision, however, did not institute an across-the-board stay on the legislation passed as part of the State budget solution. The 400 or so redevelopment agencies can continue to operate until the case has been settled. However, they cannot enter into new agreements, purchase new property, or issue new debt.

From the Los Angeles Times:

The California Supreme Court agreed Thursday to hear arguments in a lawsuit challenging state action that could lead to many local redevelopment agencies being shut down.

The court issued an order delaying enforcement of most provisions of the new law until a ruling on the merits of the case, but said redevelopment agencies could not incur new debt, transfer assets, buy property or enter into new contracts in the meantime.

Read the full article here.