Cupertino's shopping mall hangs in the balance today, as the city awaits news as to whether Sears will soon shutter, and its redevelopment agency is eliminated by the California Supreme Court
The Cupertino Sears was not on a list released this morning of 79 stores nationwide closing in the near future. However, the ailing company is expected to close between 100 and 120 stores; future announcements are expected. Local Sears officials could not be reached for comment.
It was also announced today that the California Supreme Court upheld a law that dissolves the state's 400 redevelopment agencies—including Cupertino's Vallco Redeveloment Agency—and allows the state to seize $1.7 billion in property tax revenue to fund schools and special districts.
The court struck down a second law that would have enabled the
agencies to come back into existence if they agreed to contribute $400
million annually in future years to schools, transit and firefighting
The panel said the second measure violated a 2010 voter initiative
that barred the state from diverting property tax revenues from redevelopment
Justice Kathryn Werdegar wrote that the legislature had the power
to terminate the agencies, but did not have the authority to require
mandatory payments as a condition of future existence.
Both laws were enacted by the Legislature and signed by Gov. Jerry
Brown in June as steps to help close the state's $25 billion budget deficit.
The state high court issued its ruling in San Francisco in a
lawsuit filed by the California Redevelopment Association, League of
California Cities and the cities of San Jose and Union City.
In August, to contributions to the state so that the Vallco agency could continue. City staff recommended the action in the event the lawsuit prevailed.
An immediate response from Cupertino officials was not available, due to the closure of City Hall through Jan. 2.
The Vallco agency was created in August, 2000, and was intended to exist through 2030. It's purpose is to revitalize the struggling center by encouraging private sector investment and facilitating site rehabilitation, according to the city's website.
The Bay City News also contributed to this report.