SAN FRANCISCO — California's redevelopment agencies may be closer to death's door than previously thought after a state Supreme Court hearing on Thursday.

The court is hearing a challenge to a pair of laws the Legislature passed this year — one eliminates redevelopment agencies, and the second allows them to come back to life if they make payments to help balance the state budget. During a tense hearing, the justices appeared to give consideration to a split decision; allowing the law that eliminates the agencies to stand, while finding unconstitutional the law that allows them to survive by paying the state.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.