Court: Riverside owed payback for redevelopment loans
By IE Business Daily on July 10, 2013
Riverside has won a major battle in its lawsuit with the state involving the city’s former redevelopment agency.
A Sacramento Superior Court Judge ruled that city should be repaid for the $18.5 million in loans it made to the former agency, according to a published report.
That ruling, which was made public this week, possibly eliminates one of the major issues in the dispute between Riverside and the state Department of Finance, according to the report.
The disagreement began last fall, when officials with the finance department questioned whether the city’s loans to the one-time redevelopment agency were eligible for repayment, and whether its successor agency could spend money it had already borrowed on unfinished redevelopment projects.
Riverside filed suit against the finance department in February.
Whether the city would get all of its money back remained in question until the court’s ruling, although the state is expected to appeal that decision, according to the report.
California last year dissolved all redevelopment agencies in an attempt to help resolve the state’s budget crisis.