Downgraded, But Not Out

University Place, Washington is a small town struggling through the recession. With its credit rating recently downgraded and labeled a "negative outlook," the town is facing new challenges as it tries to emerge from the hole.
January 1, 2012, 5am PST | Chris Steins | @urbaninsight
Share Tweet LinkedIn Email Comments

"It was in the midst of building a new downtown virtually from scratch when the financial crisis set in three years ago, leaving the city with a big debt and little of the new tax revenue it expected by now.

So, University Place cut its work force by 30% to save money. With growing unemployment, some residents lost their homes. Then, earlier this month, the coup de grace: Moody's Investors Service cut the credit rating on the city's debt and assigned it a 'negative outlook.'"

This town of 31,000 was building its new downtown mixed use project when the downturn struck, causing many prospective tenants to bail. Now the city's left with $48 million in debt on the project. But city leaders are still hopeful that the project will help bring the city's economy back.

Thanks to Nate Berg

Full Story:
Published on Friday, December 30, 2011 in The Wall Street Journal
Share Tweet LinkedIn Email