Ex-Police Chief Still Owes $35,000 to Pasadena

The Pasadena City Council has granted a three-year loan extension to former Police Chief Jerry A. Oliver, who still owes more than two-thirds of the $50,000 the city loaned him to buy a house in 1991.

Oliver, who left the city in May 1995 to become the police chief of Richmond, Va., was supposed to pay back half the loan through a salary reduction and the other half after either five years, the sale of another house in Phoenix or the end of his employment.

However, Oliver, who still owes $35,476.80, could not pay off the loan when he sold the home in Phoenix because there were no net proceeds after he paid off the mortgage, officials said. Likewise, since his employment ended with Pasadena, he has not been able to sell the San Rafael Hills home because he owes more on it than it is worth, officials said.

“My understanding is the house is only worth enough to pay off the banks and not us,” said Councilman Paul Little.

In 1995, the council gave Oliver a loan extension. Officials on Monday night again extended the loan with interest-only payments at the rate of 6.25%.

Little said Tuesday that he will ask the city attorney to examine whether Oliver could be sued for breach of contract.