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End of redevelopment agencies traps billions in local government loans

California Watch
 — Feb 2 2012 - 10:17pm

More than 400 redevelopment agencies were officially shuttered, leaving a trail of uncertainty – and a potentially staggering debt load.

Across the state, cities and counties have loaned more than $4 billion to their redevelopment agencies over the past few decades, but according to the law governing how agencies will be dissolved, they may not be able to recover that money.

Until the Department of Finance reviews each agency's plan to pay off existing debts and obligations in late April, it is unclear how much of the money will be returned to cites and counties.

Read the complete story at California Watch. California Watch, the state’s largest investigative reporting team, is part of the independent, nonprofit Center for Investigative Reporting. For more, visit www.californiawatch.org.

Comments

re-development seems like a new way for developers to scam the counties for freebies under the guise of social welfare, at least in Oakland I have seen this first-hand