RECENT CALIFORNIA DECISIONS

March 2009

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Attorney General Concludes Redevelopment Agency May Enter into Loan Agreement where Loan Recipient Is the Son of an Agency Board Member
___Ops.Cal.Atty.Gen.___

At the request of State Assembly Member Norma J. Torres, Opinion No. 07-807, prepared by Attorney General Marc J. Nolan, was issued by the Office of the Attorney General, concluding that the fact that the recipient of a proposed commercial property improvement loan from a city redevelopment agency would be a corporation owned by the son of an agency board member did not itself, preclude the agency from entering into an agreement to make that loan. The opinion concluded, however, that in order to avoid a conflict between her official and personal interests, the board member should abstain from any official action with regard to the proposed loan agreement.