California Redevelopment: Winners & Losers

Significant noise has surrounded the dissolution of California Redevelopment Agencies for the past three years. Numerous headlines trumpeted debt service disruptions, lawsuits, cleanup legislation and potential hiccups related to the flow of funds for California Redevelopment debt.

Over time, it has become clearer that the potential for credit improvement has trumped the short-term risks of implementing the legislation. Thus far, it would appear that bond holders have benefitted. The local governments have not fared as well.