Successor Agency to the Dissolved RDA

On December 29, 2011, the California Supreme Court upheld the legislative dissolution of redevelopment agencies under AB 1X 26 and invalidated the "Voluntary Alternative Redevelopment Project Act" (AB 1x 27). This decision means all California redevelopment agencies, including the Arroyo Grande Redevelopment Agency, were dissolved effective February 1, 2012.

Responsibilities of the Agency

Pursuant to the provisions of Assembly Bill X1 26 (ABX1 26) and Resolution Number 4420, the City Council has elected to have the City of Arroyo Grande serve as the Successor Agency to its dissolved Redevelopment Agency. The Successor Agency is charged with the responsibility of winding down the affairs of the dissolved Arroyo Grande Redevelopment Agency pursuant to the provisions of AB 1X 26.

Key Role

The Successor Agency plays a key day-to-day role in assuring that the existing debt service and other obligations of the dissolved Redevelopment Agency are properly paid, and that the dissolved Redevelopment Agency's properties and other assets are disposed of in an appropriate manner.


The Successor Agency is overseen by an Oversight Board consisting of seven representatives. The legislation prescribes the number and types of members on the Oversight Board representing the City of Arroyo Grande, the County of San Luis Obispo, and local education and special districts of the Redevelopment Project Area.

Redevelopment Agency Dissolution Documents