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As the state budget is on the front burner, with the GOP virtually united in the last piece of the puzzle, shutting down our over 400 redevelopment agencies, I thought it appropriate to share part of an OC Register editorial penned by Steve Greenhut that was published on Jan 28, 1999. The headline reads:
City Hall handouts.
Steve begins stating “there is a crucial, yet often overlooked distinction between government policies that are favorable to business in general and those that favor some businesses in particular.”
In this editorial Steve refers to Kosmont & Associates “doing business survey “.
He points out “there’s a world of difference, however, between cities wise enough to keep business fees and manufacturing taxes low to encourage new business development, and those that divert public funds to private companies in the name of redevelopment.
The first approach benefits any and all businesses, the second redistributes income from taxpayers to those businesses favored by politicians and city managers.” He later adds “clearly corporate welfare has gone mainstream.”
The editorial includes three redevelopment projects in Mission Viejo from our investing “$1.3 million to lure a minor league baseball team, which has since been sold and moving to Yuma, Arizona” renovation of our Mall parking structure and a disaster called Kaleidospcope on Crown Valley Parkway and the freeway.
“Claiming that Mission Viejo needed wholesome family entertainment, the city council had announced plans in 1996 to spend $5 million to build a new stadium, $1 million to renovate a stadium at Saddleback College for temporary use until the new park was built, and $150,000 in fees to help the franchise relocate from Long Beach.
He goes on to point out that “the city also recently committed $85 million in total indebtedness to subsidize the upscale renovation of a local mall, and has announced plans for a $2 million subsidy to the developer of an entertainment complex.”
But as the Kosmont survey makes clear, Mission Viejo is hardly unique. As Mission Viejo City Manager Dan Joseph told us, “fault the law, but don’t fault cities” for taking advantage of it.
Redevelopment laws certainly deserve more scrutiny. But reform is likely to come only after more Californians hold accountable those officials who create a pro-business climate by offering bald-faced corporate welfare and not just minimum taxes and regulations.”
What Dan Joseph stated is very revealing. He acknowledged that while our city is not blighted in the true definition of blight, unless we do something to change the law city managers across the state will continue to abuse their redevelopment agency powers.
Gilbert notes.
Eventually we will will discover what the governor is using to reward the Democrats for their votes to kill our states 400 plus redevelopment agencies. Most of us are not permitted into the back room where deals are being cut as my fingers hit these keys.
When I testified before Tom Torlakson on behalf of Tom McClintock (AB1677) in April of 1998, pointing out the abuses of our city, I was asked a simple question. When was your RDA initiated? One year prior to AB 1290 Eisenberg. Even Legislative Advocate Kenneth Emanuels, who represented the opposition, told me that Mission Viejo could not have engaged in this redevelopment projects if the agency was created today (1998).
As the Mission Viejo Mall Bonds carry a variable interest rate the total indebtedness is much lower than originally anticipated. The new parking structure, that our redevelopment agency funded, was under construction for several months before the city council/redevelopment agency, voted to approve that project’s bonds.
The 220,000 square foot Kaleidososcope project, that was not included by Huell Howser in his series of successful redevelopment projects, originally cost Samsung Pacific around $55-60 million dollars. It was sold for $28 million in 1991 and had another fire sale for $22 million. It is reported to have a 38% vacancy last year. Our $2 million investment, that was to be repaid upon conclusion of the first sale, never materialized.
Readers/taxpayers. Keep your eyes on SB 214(Wolk) Infrastructure Financing Districts.
“Today, forming an IFD is a cumbersome and unattractive option compared to a Redevelopment Agency RDA. Only one IFD has been formed since the law’s inception. IFD and RDA project areas can’t overlap.”
Email reply from a conservative MV taxpayer:
Excellent coverage Larry……I moved to MV in 1994 and remember all the events that you have mentioned….This was the reason that CIG was formed to prevent futher giveaways from the city and eventually defeating the two dominating women on the MV City Council.
Gilbert note: CIG representing the non-partisan watchdog group Committee for Integrity in Government that existed for six or seven years
Looks like someone likes your cut and paste, Gilbert.
Stanley. Everyone from Matt Drudge to Flash Report provides story links and excerpts.
Cut and paste.
Is that why Steve Greenhut gave an award to three Mission Viejo watchdogs in the Register entitled “Faces of Freedom?” Would you like to receive a copy?
We provided the activities and accounts of the abuses in Mission Viejo that he covered.
Further you would not have been able to read the “cut and paste” if I had not retained that old Register editorial.
Keep looking under rocks to attack my reports.
Isn’t it nice that your access was reestablished after you were sent to the penalty box?
“Isn’t it nice that your access was reestablished after you were sent to the penalty box?”…… Hmmm
Keep repeating what a moron mongoloid you are Gilbert.
Like if the constitution was dependent on your permission you HOA idiot.
Stanley is jealous because they do not have HOA’s where he lives. The next time they ask me to serve on the Board I may say yes just to annoy him.
“jealous”………. Hmmmmm
Here is my HOA. http://woodsidevillage.ocsatire.com/
LOL “Everyone from Drudge to the Flash Report” – Brother Larry’s world.
(Points taken though)
Vern. I read many other Internet sources for news.
My reference to Drudge, etc is that they provide a wide specturm of story links and writers.
In fact, in addition to our Internet videos the Cutting Edge-a talk show has 350-500 links on our home page(s) including Arab News, Business Week, Haaretz, Media Research, Obama, Politico, Pravda (for Stanley) and Roll Call to name a few.
Why do you think that we need Larry Gilbert to gave as censured version of the original story?…… Huh?
If nothing else this proves Greenhut has been flailing around for decades. Maybe some day he will really accomplish something.
Mr. Gilbert, could you find smaller type? I can still read this stuff (but barely)
BAW. Let’s take your top priority first. The size of the type is not under my control.
As to Mr Greenhut let me tell you that Steve and I have worked together on several examples of big brother trying to take your home against your wishes. He deserves a medal for placing this complex topic under a microscope. As you can see elimination of redevelopment agencies are priority one for governor Brown this week.
Abuses in Hollywood, Lake Elsinore, Garden Grove, Cypress and Mission Viejo are but a few of the cities whose RDAs were covered by Steve while he worked at the Register.
What readers have not discovered, including myself until this morning, is that the proposed alternative is worse than what we have today. I have now read the Bill.
Redevelopment Agencies have decimated the free market system. There is no requirement for a competitive bid, (request for proposal), for redevelopment projects, therefore politically connected developers receive public lands without the needed requirement of competition. There is no assurance that the assessed value is the market value due to the lack of competitive bids.
My favorite recent example in Garden Grove is the Century Triangle, at Euclid and Century. The developer, Brandywine Developer (Councilman Steve Jone”s company), received this redevelopment property without competitive bid at the assessed commercial value. The commercial value is millions and millions of dollars less than the residential value. Brandywine Developers changed the zoning from commercial to residential at the same city council meeting. The city should have assessed the property at residential and changed the zoning in order for the public to benefit rather than the developer.
The current city council will receive campaign contributions, per past elections, to ensure they are elected. This sure smells like public money laundering, developer receives public property without competition and city council receives campaign contributions. Status quo remains.
GG Voter.
Thank you for this info. I will do some legwork and see what we can do to expose the council.
In June of 2002 I spoke at one of your city council meetings where I encouraged the 700 in attendance to throw the bums out if they used their eminent domain powers to take hundreds of homes and businesses along Hatrbor Blvd. Leading the Coalition of Concerned Garden Grove Citizens was Manny Ballestero supported by many residents including Leo & Verla Lambert in opposing “Bulldozer” Broadwater.
My Orange Grove article on how to fight big brother was published in the OC Register.
The focus was based on that GG council meeting.