Defaults May Loom on California Redevelopment Agency Debt
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As many as 100 municipalities that took over bond obligations when California erased redevelopment agencies may not get the tax revenue they’re counting on tomorrow to make payments, the state Finance Department said.
Such cities and counties may face cash-flow constraints that eventually may threaten defaults, said Matt McCleary, a project manager at Rosenow Spevacek Group Inc. The Santa Ana firm is advising about 35 cities on redevelopment issues.