BHGC, An Unmitigated Disaster Waiting To Happen.

Today, Brea Matters again addresses the recent vote by Council to assume title of the BHGC (Brea Hills Golf Course).

Red DiceWhen I launched Brea Matters in October 2011, a key catalyst was former City Manager Tim O’Donnell’s favorite definition of leadership, “Leadership is disappointing your constituents in increments they can absorb.”

Long ago ingrained as the management mantra of Brea’s Council and Staff, it has proven to be sadly accurate in it’s premise.

How Much Have You Absorbed?

In ten years, I’ve lost track but in recent times we’ve “absorbed” the disappointments of the 1976 Paramedic’s Tax, the 1991 RDA bond refinancing that produced a $50 million unaudited slush fund, the loss of the Gateway Center – a prime city asset, loss of the Yorba Linda Police contract, reorganization of the Brea Fire Department.

Plus the mismanagement of Landscape, Lighting & Maintenance Districts (LL&MD) and Community Facilities Districts (CFD), Tiered Water Rates, and these self explanatory fiascos: Koreagate, Madrona, Rock Garden, unfunded pension debt and Brea Envisions

Council and staff count on our short memories and propensity to forgive. Next Tuesday they will once again rely upon their old mantra to get them off the hook one more time.

Misdirection, Misinformation and Misconceptions.

The first thing you’ll be fed is a litany of useless historical “facts” designed to lull you into a dull sense of inattention. Detailed descriptions of the “parties” involved, clarification of the original intent of the title exchange and justification of redesigning the course into substandard quality.

They’ll try to justify the ridiculous $80/yard excavation fee as a basis to project future mitigation fees. Everyone put your calculators away. We’re missing one important factor in the equation, without which no accurate projection is possible. They have no clue exactly what the remaining unmitigated condition of the BHGC is, how many acres… how many yards of “dirty dirt”… remain after the admitted partial mitigation done to save Chevron $13 million in additional costs.

The BHGC: Permitted Uses, Prohibited Uses.

We’re told, by the City Attorney, that permitted uses include a golf course or other outdoor recreational use, and the addition of a community or banquet facility. Prohibited uses include residential development, hospitals, clinics and medical offices.

So, does “permitted” mean legal and “prohibited” mean illegal? These terms have been tossed about as equivalents and they’re anything but!

City Attorney Boga stated that, with certain permissions, the city could do whatever they wished with the property. Permissions from OC Healthcare Agency, US EPA, Birch/Kraemer LLC and Union Oil.

He failed to mention that, assuming getting all of those permissions was even remotely possible, that Chevron would be absolved of their requirement to maintain the parking lot and the city would assume the responsibility.

Plus, changing the BHGC to a non-park use requires voter approval of Brea residents. Really?

When Is Our Voice, Our Vote Obligatory?

BHGCDid we get to vote on whether we were willing to trade the $8 million In Lieu Fees for the eventual title to a semi-toxic stripped down golf course worth, at best $5 million? No.

Did we ever get to vote on whether we believed the city, in addition to routine municipal responsibilities, should be free to commercially compete with all manner of local businesses? No.

Did we get to review the detailed legal documents and agreements required to effect this transfer of title and vote whether we supported the transfer with all of its complicated and fiscally threatening limitations? No.

One member of Council, for reasons I still find incomprehensible, was recused and the four remaining members of Council voted unanimously to take ownership of this white elephant.

Have You Absorbed Enough Yet?

I have! And if response to the prior blog and commentary on the Brea Buzz is any indication, many of you have reached total saturation as well.

You’ve got about two days to make your thoughts and concerns known to Council before they launch into their dog and pony show to justify the unsupportable vote they cast two weeks ago.

Juked out of simply putting their propaganda on the city website, thereby giving it the full weight and credibility of the interwebs, they’re stuck making it look like a formal report Tuesday evening.

Luckily Matters From The Audience follows this sugarcoated attempt to justify after the fact… so those of you with the chutspa are welcome to step up to the podium and give these folks a piece of your mind.

Voice of OC Exposes Cal Domestic!

A lengthy investigation by City Treasurer Rick Rios has uncovered inconsistencies regarding the purchase of Cal Domestic water shares and could well be the smoking gun to numerous other questionable business practices.

As Dwight Manley so aptly said at a recent meeting of Brea’s City Council, “Every time a Brea residents drinks from a faucet or flushes a toilet, they’re getting ripped off.”

Bill Gallardo, City Manager, say all is well and nothing to worry about. Lynda Noriega, Cal Domestic CEO, refuses to answer an question.

The probability that this will lead to a much deeper investigation and likely litigation runs high.

See full article here:  https://bit.ly/2H0QKbp

Weigh in with your full opinion here if the Nextdoor guidelines seem to hamper you or you have that nagging fear of getting excommunicated if you say what you really feel.

RDA 2.0 – A Really Bad Idea!

On Friday morning, August 2nd, the Development Committee met with only one real item on their agenda. “Enhanced Infrastructure Financing Districts (EFIDs) with presentation by Staff and Larry Kosmont, Kosmont Companies. The presentation from Kosmont, centered around “How do you capture vitality and quality of life in a digital economy?” However a good dose of “state mandates fear” formed the foundation upon which the presentation was built.

Let’s get to the heart of the matter.

There appears to be a growing interest in rejuvenating an old idea, redevelopment. This new… call it RDA 2.0… is a rebirth of tax increment financing for local/regional projects.

Managed by Brea’s Public Financing Authority, new redevelopment districts would be created, property taxes frozen and new “redevelopment” bonds issued to finance some sort of infrastructure projects.

No public vote is required to create these new “enhanced infrastructure financing” districts!

The mantra “no new taxes” is repeated over and over as if that will lull us into a false sense of trust and comfort.

Look, when the property values are reassessed and the taxes unfrozen, the properties will be paying at a much higher rate and the difference will be used to retire the bond debt.

What about this suggests no new taxes?

So, where are these new EIFDs?

The report listed: Central Park Village, Brea Place (Hines), Aera Energy Brea 265, 2830 East Orbiter (adjacent property owned by firm of Planning Commissioner James McGrade), Embassy Retail Court, Brea Mall, Brea Plaza, Former Improv, Gaslight Square, Regal Theatres, Mercury Lane Residential, Downtown hotel, Brea Community Center, Brea Library, and Suzuki Motor of America.

To me, 90% of these properties are either doing quite well as is or they’re in various stages of development… not even yet completed. And the United States Bankruptcy Court confirmed American Suzuki’s plan of liquidation (Chapter 11) on February 28, 2013.

The first city/county EIFD tax increment partnership is the Placentia Old Town district. Over 300 acres with taxes frozen at $365 million and anticipated to be unfrozen at $460 million. For what?

Kosmont lists the following: $22M net fiscal impact to City; $15M to County; 1,600+ housing units; 3,900+ construction jobs; $800M+ construction period economic output; 1,150+ permanent jobs; $164M+ in annual ongoing economic output.

Prove it.

Here is what Kosmont proposes to do in Brea: Kosmont to evaluate: Project and land use review; EIFD boundary alternatives; infrastructure improvements required; Tax increment funding capacity / complementary sources; Orange County cooperation; Implementation strategy and roadmap.

Kosmont proposed timing: Feasibility evaluation – 2 to 3 months; District formation activities – 6 to 12 months.

Stop the madness!

Not a whisper about seeking public review or approval.

In December 2011, the California Supreme Court upheld the complete elimination of redevelopment agencies and TIF along with it. The legal wrangling that followed is complicated and not worth going into detail here.

Suffice it to say Redevelopment was terminated for good reasons. Why, just 8 years later, has it suddenly become a good idea again?

Nothing in life is free.

They try and seduce us with parks and community projects. But where’s the money come from? From schools and our pockets!

From the mid-seventies through 2011 Brea built a boatload of RDA projects. Some were on private land and made reasonable use of the tax increment. Many, like the Civic Center, Community Center, Senior Center, Sports Park and Rails-to-Trails were on public land for which no tax increment existed!

District borders were repeatedly expanded, bonds were repeatedly refinanced and cash was created at every opportunity. Hell, they even tricked us into passing the Paramedic’s Tax, almost half of which never paid for a single thing related to emergency medical services.

No one in city hall can give you an accurate price for one single project. The web of financing hijinks was so complicated they’ve lost all comprehension of what they pulled off for over 40 years. Millions upon millions.

You know what really hurts? We still owe $193,871,104 million dollars which we’ll be paying off all the way through June 2036.

Revenue is down, expenses are ever on the increase, we’re hovering on the edge of unbalanced budgets for several years to come.

Now is not the time to start some fiscal boondoggle, proven to be a failure years ago. Especially if it does little more than provide job security to a handful of city planners having a tough time justifying their jobs anymore.

Tax increment financing (TIF) is no way to defray the cost of urban revitalization… assuming that’s what we want to do in the first place.