The City wanted to know if their bonds where legal…. Actually no one ever questioned that in any of the States pleadings… and in fact agreed the bonds were good…. It seems that the Judge agrees…. And that is all.
What the city seems to have won is it can keep the Bond Money, but since no contracts where signed Project Phoenix is in the air. Also while the court says that the bonds are indeed enforceable obligations to the “City” it does not mean it is an Recognized Obligation to the DOF. In other words While the Bonds are good and the money can be diddled away…. it does not mean that the DOF is obligated to make the interest and principle payments.
You live by the Writ die by the Writ. A careful reading of the ruling saves the State a whole lot of money in that they do not have to pay for 29 Palms folly. Sure 29 ends up with the proceeds of the bonds, but is held to their use by the very language that they used to fight the state with. Pretty funny when you think about it.
I am pretty sure this is not a win in the real sense of the word winning. The State can and will deny the interest payments to the bonds because the bonds belong to the “City” now and not the Successor to the RDA.
Congratulations City you got the question answered but in the end you just hosed yourselves. The Bond money will not buy much, but the principle and interest will eat you up.
Second look.…. the City is worse off than when it started.