Now that is no longer, the city wants what is left of the $8.16 million it loaned the agency returned to the general fund.
Officials lent the money to complete capital projects in the city and to meet obligations to .
“Back in 2009 and 2008 when the loans were made, the city had extra money in its reserves,” said Leslie Suelter, the director of administrative services.
With the successor agency – the City Council – currently allowed only to pay back money owed to bond holders, the city wants to make sure the $5.86 million left of the loan "doesn't go to some other taxing agency," City Manger Blair King told the City Council, which approved the repayment on a 4-1 vote.
The statute that abolished redevelopment agencies throughout the state is unclear on how promissory notes are handled. King reported that there is pending legislation that would ensure that unbonded obligations would also be repaid.
The bill passed the state Assembly and is now under consideration in the Senate, King added.
Because the city felt it had the legal authority to act despite the law's ambiguity, the council decided to recall the loan ahead of the legislative action.
Councilwoman Carrie Downey argued that “We are only taking back a loan we gave ourselves.”
Councilwoman Barbara Denny, however, opposed the move. “I don’t see that we have legal authority,” she said. “It’s a smooth financial move, but it’s the wrong move.”
“We are already under state scrutiny. This will just give more information to our detractors,” she continued.
The CDA was in January 2011 for what some viewed as questionable redevelopment practices. The probes came just after Gov. Jerry Brown called for abolishing all redevelopment agencies.
Coronado was not cited for irregularities, though critics questioned how a city with million-dollar homes could qualify as blighted.
to monitor and review moves by the city as the redevelopment agency's business is wrapped up.