The City of Twentynine Palms is refusing to take the latest letter from the California Department of Finance on the status of Project Phoenix as the last word on the matter.On November 16, a delegation from the City met in Sacramento with representatives of the DoF, to discuss bond proceeds that the Successor to the Redevelopment Agency had transferred to the City with the object of using them for the Project Phoenix downtown redevelopment plans.
On November 21, the DoF sent a letter to City Manager Richard Warne that said, in part , “the Agency is required to reverse the improper transfer and recover the bond funds from the City.”
We spoke directly with City Manager Richard Warne about the letter.
He told us:
The City is evaluating the DoF letter.
The City doesn’t feel that DoF has addressed the legal issues surrounding bonds issued in the first half of 2012.
Twentynine Palms is one of 53 cities and other agencies in same situation.
The City does not believe DoF can ignore Federal laws regarding contracts.
He believes the issue will be settled by legislation or litigation.
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