Glendale sues state over $30M in interest on loans

Image of Glendale City Hall.
Image of Glendale City Hall. Flickr/ T.Hoffarth

The Southern California city of Glendale has sued the state over a potential loss of more than $30 million in interest from loans made decades ago to the now-defunct Redevelopment Agency.

The Los Angeles Times said Monday that the case will hinge upon whether to use interest rates agreed upon when the loans were first signed in the 1970s or when the Department of Finance reinstated them a few years ago.

City Manager Scott Ochoa says the $31.9 million in interest would have gone back to the general fund to benefit Glendale's parks and community centers.

The newspaper says a hearing on the case is scheduled for Feb. 13.

State attorneys have filed a response to the city's claims, but did not return phone calls seeking comment.

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