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.

1 minute read

January 1, 2012, 5:00 AM PST

By Chris Steins @planetizen


"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

Friday, December 30, 2011 in The Wall Street Journal

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