City OKs Loan to Renewal Agency
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The newly formed Lawndale Redevelopment Agency received a $500,000 loan from the city of Lawndale on Thursday, despite objections from city activists that the loan is illegal.
The City Council, acting as the Redevelopment Agency, voted 3 to 2 to grant the loan, with Mayor Harold Hofmann and Councilman Larry Rudolph dissenting.
The loan is being funded by proceeds from the recent sale of the city’s interest in the Galleria at South Bay. City activists charge that city law requires this money to be used only for capital improvements.
But City Manager John E. Nowak said the City Council is allowed to invest in anything that recoups original investment money. “We are investing in ourselves,” Nowak said.
City Atty. David J. Aleshire said the loan will probably be used for attorney and consultant fees for future development projects.
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