Glendale Mayor Ara Najarian on Wednesday said the city was pursuing a lawsuit against a prominent affordable housing development company that allegedly bilked the city out of millions of dollars in inflated construction costs.
The developer, Advanced Development & Investment Inc., is under federal investigation for allegedly transferring millions of dollars to personal accounts and artificially spiking costs for projects across the state.
"This is significant and we are treating it as such," Najarian said. "We feel what they did was wrong…If need be, a judge and jury will confirm that what they did is wrong."
ADI officials could not be reached Wednesday.
Glendale's potential litigation was announced after a Times investigation found that ADI channeled tens of thousands of dollars in campaign contributions through its subcontractors to past and current Glendale City Council members who ultimately voted to allocate millions in redevelopment assistance to the company's housing projects.
They did so even after city housing officials raised concerns about the quality and rising costs of the most recent ADI project, Vassar City Lights, according to internal staff memos.