Investors in Port Authority fund taking claim to court
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Some 50 investors in a St. Paul Port Authority fund who say they're owed tens of millions of dollars take their claim to court Monday.
The investors say the Port Authority improperly diverted nearly $52 million from them and they want the agency to pay up.
The Port Authority fund was started 45 years ago. But, it became insolvent in 1991 after many of the agency's building projects went belly-up and were sold at a loss.
Port Authority President Louis Jambois says the plaintiffs are responsible for making a bad investment and should not be given "a bailout."
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The Port Authority says if the investors win their lawsuit in Ramsey County, the agency can only turn to a tax hike to pay the investors. The St. Paul Pioneer Press says a tax hike is prohibited by state law.
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Information from: St. Paul Pioneer Press
(Copyright 2010 by The Associated Press. All Rights Reserved.)
