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Moody's Downgrades State Redevelopment Bonds

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(Sacramento, CA)
Thursday, January 19, 2012

A court has ruled the properties that have already been purchased for redevelopment projects must be sold.  The proceeds must go to schools and local agencies to replace funding no longer provided by the state. 

Redevelopment supporters like Rex Hime of the California Business Properties Association say the new, lower bond rating lowers the value of the properties. 

HIME: "The cities and the counties and the school districts that divide that money up aren't going to be dividing up $50 million among their resources that are available to do their other functions, they're going to be dividing $15 million."

Hime and many redevelopment supporters hope legislation at the state level will pass and the redevelopment agencies will have until April to dismantle operations, sell properties, and transfer funds.  Himes says that extra breathing room might allow the bond rating to be upgraded.

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