COSTA MESA : Agency Alters Course on County Settlement
The Redevelopment Agency on Monday reversed an earlier decision to accept Option B to recover the money it had in Orange County’s failed investment pool.
The agency initially chose Option B, under which it would have recouped 76% of its investment and retained the right to sue for the rest.
In switching to Option A, the agency relinquished its right to sue after determining that it would have to spend too much on legal fees to recoup the rest of its investment.
“They would end up having to spend an inordinate amount,” City Manager Allan L. Roeder said. “If you had millions and millions outstanding, that might make sense, but the agency would have less than $100,000 to make up. You are looking at a minimum of more than that in legal fees.”
Under Option A, the county agrees to pay the agency about 76% of the $500,000 it had in the county pool when it collapsed in December.
Another 4% is to be repaid in notes that can be cashed by June 5. The rest of the money is to be returned at an unspecified date.
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