Huntington Beach set to receive $22.4 million following court victory
Huntington Beach, California – In a significant development, the City of Huntington Beach is set to receive a substantial payment of $22.4 million, with added interest, following a legal triumph in a case concerning a loan given to developers during the period when redevelopment agencies were operational.
This constitutes a conclusive success in the matter of the City of Huntington Beach versus the State of California, a lawsuit originally initiated in 2008. The state finance agency clarified its position in a letter to the city, stating that it “no longer denies this item … [and] in compliance with the judgment, the agreement for purchase and sale of property … is considered an enforceable obligation.”
In an attempt to stimulate development under the then-prevailing redevelopment legislation, numerous cities, including Huntington Beach and Garden Grove, undertook loans and other financial measures. Following the statewide dissolution of such agencies, cities with ongoing development projects required the approval of the state finance department to proceed.
The redevelopment approach enabled Huntington Beach to establish three hotels within a resort district located along Pacific Coast Highway.
City Attorney Michael Gates expressed his satisfaction with the outcome of the case, stating, “I am pleased there are no barriers to the city immediately collecting the taxpayer money that was improperly denied by the state for many years.” He added that it was a significant victory for the city that many had previously considered unlikely.