Another City Sues State over Redevelopment Funds

By: AP Email
By: AP Email

RANCHO CORDOVA, Calif. (AP) - Another California city is suing the state Finance Department for refusing to return former redevelopment agency funds.

The Sacramento Bee says Rancho Cordova wants to recoup more than $6 million it loaned in recent years to its former redevelopment agency.

The Finance Department denied repayment and the city east of Sacramento has now sued.

Last week, the city of Galt south of Sacramento sued because of rejection of about $12 million in current and future payments for redevelopment work in the city's historic area.

The cities want the agreements with their one-time redevelopment agencies declared enforceable obligations.

Lawmakers recently dissolved redevelopment agencies and local governments were put in charge of winding them down.

The issue now is whether some of the money can be used to satisfy redevelopment debts.


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