In some cases, business owners do not decide to go forward with their venture until they feel assured that they will have enough business to keep them afloat, at least initially. That is why recent news that downtown Sacramento may not receive millions of dollars in redevelopment funds that it had been counting on could be bad news for the business formation front.

Sacramento has been trying to develop a dilapidated railyard and has been wanting to make improvements to the blighted K Street Mall for a long time. City leaders thought they were due to receive subsidies in the neighborhood of $80 million to finish these project, but now a state supreme court decision that upholds the legislature's decision to ban redevelopment agencies means that funding might never see the light of day.

This is especially a problem for a few real estate development firms that had purchased projects or entered into agreements with the city with the idea that they would get redevelopment funds. If those funds never see the light of day, it may mean that these businesses are not going to get to enjoy the fruits of their agreements. Or, even worse, it could mean they are left with deals, agreement and land acquisitions that are now unprofitable because the redevelopment money never materialized.

In situations like this, it can be helpful to have an attorney who handles business and corporate law whom you feel like you can turn to. A good lawyer can simplify and explain a complex situation and may be able to help you chart your next steps.

Source: The Sacramento Bee, "Ruling threatens millions slated for downtown Sacramento redevelopment," Ryan Lillis, Jan. 5, 2012