You got a source for this accusation on the redevelopment agency I mentioned?
I knew these people personally. I worked with them and spent time with them out of the office. They were good intentioned people that unfortunately gave in to temptation. Pretty much all the businesses that got funds and loans were mom and pop shops struggling to make ends meet because the state of the neighborhood. These stores benefited greatly from the help and the community did improve.
The problem with this particular redevelopment agency a lack of proper accountability and oversight which led to them taking a piece of the pie for themselves. It didn’t happen immediately, it happened when they couldn’t resist it anymore. My point is simply that even when good intentioned people are put in these positions, they can still fall if there isn’t proper accountability.
I have enough information to make a generalization, but not specifics to your area. I have seen this gambit where I've lived, in Culver City, in Oakland, and in San Jose. My dad was a municipal financing consultant, and he dealt with lots of these agencies. His complaints were the same.
They were good intentioned people that unfortunately gave in to temptation.
So how is that not a systemic problem? The simple answer is that eminent domain for redevelopment is too much power.