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.
"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: A City Slips as Downgrade Hits Home
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