Question
(redacted)
September 22, 1988
Richard Smith
Premerger Notification Office
Bureau of Competition
Federal Trade Commission
6th & Pennsylvania Avenue, NW
Room 303
Washington, D.C. 20580
Re: SALE OF PROPERTY BY REDEVELOPMENT AGENCY
Dear Mr. Smith:
This letter concerns our conversations of September 21 and 22, 1988, regarding the filings of a Pre-Merger Notification with respect to, among other things, the sale of certain buildings and equipment by a Redevelopment Agency.
This letter confirms your interpretation, based on the following facts, that a Pre-Merger Notification is not required with respect to such sale.
As we discussed, Redeveloped Agencies are created pursuant to the Public works and Economic Development Act of 1965 (42 U.S.C. Section 3121, 3171 (b). In California, pursuant to the community Redevelopment Law (Cal. H. & S. Code Section 33000) such agencies are created by, and exist at the pleasure of local governments (Ca;. H. & S. Code Section 33003, 33101, 33141). Notwithstanding that Redevelopment Agencies have the power to enter into contracts in pursuit of their enumerated objectives (Cal. H. S. Code Section 33125), such agencies perform primarily governmental functions (Cal. H.& S. Code Section 33122).
For the foregoing reasons, Redevelopment Agencies are therefore agencies and not corporations engaging in commerce, as such terms are used in 16 C.F.R. Section 801.1(a)(2). As such, Redevelopment Agencies are not included within the definition of entity as provided by 16 C.F.R. Section 801.1(a) (2), and are thereby exempted from the notification requirements of the Hart-Scott Rodino Act (15 U.S.C. Section 18a).
If you have any questions or comments concerning this please do not hesitate to call.
Sincerely,
(Redacted)
cc:(redacted)