The nearby city of Pinole has closed the sale of the Pinole Valley and Pinole Crossing shopping centers for a combined $12.7 milion, but where the money will go is up for dispute, according to a Contra Costa Times article published Friday.
The two retail centers had been developed or improved jointly by the Pinole Redevelopment Agency and The Kivelstadt Group, a private company, years ago. In February last year the state positioned itself to dissolve all redevelopment agencies, positioning it to stake a claim in the disposition of redevelopment agency-owned properties. In reaction, Pinole and other cities transferred ownership of such properties from redevelopment to city control in an attempt to protect their assets.
Subsequently Pinole moved to sell the two shopping centers to Kivelstadt, which managed the properties. The city declared its intention to make the sale in December, 2011. Then in April the state ordered that any transactions not completed before Jan. 1 would not be valid.
The Times reported that Pinole City Attorney had replied that State Controller John Chiang had no authority to make that order.
"Like many of my city attorney colleagues, I believe that Mr. Chiang ... lacks the authority to order a blanket reversal of transfer of properties without first undertaking a more comprehensive review and audit of the transfers at the local level," Reyes wrote, according to the Times article.
The article noted that money from the sale would placed into a separate account "until the legal issues are clarified or concluded," according to Reyes.