The State Controller's Office slammed the struggling city of San Bernardino in a review of assets formerly belonging to its redevelopment agency, saying the city inappropriately transferred or withheld more than $500 million in assets, including land, buildings and money.

The city filed for bankruptcy protection last summer, citing a $46-million general fund deficit. The state's more than 400 redevelopment agencies, which used tax increment revenues for economic development and affordable housing projects, were dissolved in February 2012 and successor agencies were charged with disposing of their assets.

The state controller's review argued that San Bernardino's redevelopment agency "inappropriately" transferred $108 million to the San Bernardino Economic Development Corp., a nonprofit whose six-member governing board includes three members appointed by the City Council.

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