BB&K In the News Jan 01, 2015

Santa Rosa Wins Court Round in Redevelopment Fight with State

BB&K Partner Iris Yang Discusses a Key Ruling in One City's Effort to Recoup $7.2 Million in Redevelopment Loans in the Santa Rosa Press-Democrat

Santa Rosa has won a key legal battle in its effort to recoup $7.2 million in redevelopment loans that the state said did not merit repayment by Sacramento.

A Sacramento County Superior Court judge found last month that the state Department of Finance had “abused its discretion” when it rejected the city’s requests for repayment of three loans plus interest.

A key dispute involves whether a June 2012 law intended to clean up many of the outstanding dissolution issues was meant to be retroactive or not, said Iris Yang of the Sacramento law firm Best Best & Krieger, which has represented the city’s redevelopment agency for years.

Frawley’s ruling isn’t final. State attorneys requested he hold off officially recording it pending the outcome of a similar case currently on appeal involving the city of Emeryville, said H.D.

Palmer, the spokesman for the Department of Finance. He noted that the state has won the majority of the cases it has faced over the dissolution of redevelopment.

Even so, Yang sees the latest ruling as an important victory.

“I consider it a win,” Yang said. “It’s consistent with the way the trial courts have been treating these cases.”

*To read the full article in the Jan. 1, 2015, Press-Democrat, click here.

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