Pasadena also asked for $132.9 million to pay off redevelopment-related debts, but was denied. Loans between cities and their redevelopment agencies will only hold if the contracts were created within the first two years of the Redevelopment Agency being formed.
The potential loss of money to repay the loans is one of the biggest issued for Pasadena “and all the other cities, specifically the cities that have joined us in the lawsuit,” Boyer said.
Suing the state “is the right thing for us to do to protect our taxpayers,” he added.
Existing bonds are also at stake, according to the lawsuit. While cities believed they'd be able to pay off bonds entered into before redevelopment's dissolution, the state has been rejecting some bonds it deems inappropriate. The cities claim that's illegal.