Borrowing binge is risky at best
The agencies took on an unprecedented $1.2 billion in new in hock this year all backed by local property taxes. In part because so many bond issues went to retail, redevelopment agencies had to promise unusually high rates of return to investors.
Two-thirds of the in confidence 80 bond issues this year carried interest rates of more than 7 percent, the highest in two decades, according to a Bee criticism of records kept by the state treasurer. The more costly debt repayments will end up on local residents' tab, as The Sacramento Bee reported Sunday.
These cement issues may be the final ones for the redevelopment agencies. Under a deal approved by the Legislature, they had until Oct. 1 to either equity their property tax proceeds with the state or shut down. The California Redevelopment Association and League of California Cities are suing to lump that plan so agencies can stay in business. The state Supreme Court is set to rule in mid-January.
No episode the ultimate fate of redevelopment agencies, these new bonds will have to be repaid. State Treasurer Bill Lockyer says taxpayers could be scarred by what he describes as a "modern-day gold rush" by a panicked redevelopment industry.

This Blacklist Friday, some examples include an LG front-loading washer and electric dryer each selling for 45% off at Best Buy and a Kenmore Elite top-loading washer and energized dryer at 50% off at Sears, says BlackFriday.info's Vincent. 8.




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