Compton electeds to consider forgiving loan due by developer
Members of Compton city council will consider an agenda item, submitted by the Successor Agency, requesting loan forgiveness, for another developer. Valued at approximately $2 million dollars, the request is to prevent the property from going into foreclosure and displacing current residents . Council will also vote on updating their travel policy.
The property in question, Alameda Court, is located at the intersection of Alameda and Myrrh. The property has been the epicenter of controversy, since previous administrations, going back to 2007, approved developing the parcel into single family homes and a few live/work units.
The Successor Agency, formerly known as the Community Redevelopment Agency, previously requested a loan, to keep the property afloat while the owners had problems selling the units. The owners eventually rented them out. Some tenants were given the option to purchase. Some of those tenants are currently involved in litigation, with the owners, due to not honoring signed agreements.
Located in the last four pages, of a 62 page long agenda, documents detail the specifics behind the request.
Residents should be asking: is this similar to the loan forgiven once due by a development company attached to news publisher Danny Bakewell, if Redevelopment money is attached, is the city responsible for any amounts forgiven owed to the Department of Finance? Most importantly, if the city is hurting for cash, and they are asking citizens to tax themselves higher to pay for services, how does it benefit the city, to allow millions owed to be wiped off the books?
**update** council unanimously voted against forgiving the loan on 4/19/2016