Yaroslavsky Rebukes CRA for Loan to Club
City Councilman Zev Yaroslavsky on Monday castigated the Los Angeles Community Redevelopment Agency for lending $250,000 in “essentially unsecured” public funds to the Stock Exchange nightclub downtown, which has since filed for bankruptcy and never repaid the loan.
Yaroslavsky called for a new city policy that would make sure the city is “not subordinated” behind several other lien holders when it makes loans.
In the Stock Exchange case, because the city was eighth in line behind other lenders holding trust deeds, the city will get nothing from the foreclosure sale of the building on South Spring Street, according to the CRA. Instead, the CRA will be forced to personally sue the owners, who city officials said are in the midst of a divorce.
Start your day right
Sign up for Essential California for news, features and recommendations from the L.A. Times and beyond in your inbox six days a week.
You may occasionally receive promotional content from the Los Angeles Times.
