OAKLAND -- State Controller John Chiang voided nearly $170 million in asset transfers from Oakland's former redevelopment agency on Wednesday, but city leaders said the move, which had long been anticipated, would not impact city finances or services.
"The bottom line is there are no new developments or surprises today," City Administrator Deanna Santana said in a prepared statement.
Chiang is responsible for overseeing the end of state subsidized redevelopment -- a program aimed at reducing blight that was ended in 2011 to help balance the state budget.
Oakland had one of California's expansive redevelopment agencies. Redevelopment funds were used to help rebuild the Uptown district, construct affordable housing as well as pay for city staff including police officers.
Chiang's report found that in the closing days of redevelopment Oakland inappropriately transferred $169.9 million in cash, property and bond obligations between the city and redevelopment agency.
Chiang's findings had been known to the city for months and had already been accounted for in the budget passed at the end of June, city officials said. That month the city returned $35 million that it received when it sold several buildings to its redevelopment agency including the Kaiser Convention Center. Those funds were split among several Alameda County taxing agencies, with the city getting about $9.5 million back.