Portion of L A Times Article on RDA Problems

Scwhab and City Employees used RDA for their own benefit
....


If taxpayers and low-income residents are sometimes ill-served by redevelopment agencies, local officials and developers can make out very well indeed.

In several cities, city workers or council members received "beautification" grants or purchased homes from the redevelopment agencies.

In Grand Terrace, City Councilman Walt Stanckiewitz said he was startled to learn that three foreclosed homes purchased and fixed up with redevelopment dollars went to city employees and one to a city manager at the time. "I hate to use the word 'abuse,' but this is questionable," said Stanckiewitz, who looked into the deals at the request of The Times.

The former city manager, Tom Schwab, said he eventually reimbursed the city around $140,000 for his home — the appraised value, according to the city. Schwab said the city offered it to him because living in Grand Terrace was a condition of his employment.

But Stanckiewitz said that the home was meant for people of limited means, and that the money Schwab paid back went into the city's general fund, not to the redevelopment agency. "He got a special deal," Stanckiewitz said. "As far as I'm concerned, he took a house away from a deserving low-income family.".....


http://www.latimes.com/news/local/me-redevelop-housing-20101003,0,6402047,full.story


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Gramps.