[4th and last section of “Heavy Hitters” from the out-of-print 2000 book “Agents’ Orange”]
George Argyros
(dba Arnel Development Company)
George Argyros is a real estate developer whose center of operations is located in Costa Mesa. Argyros has many different investments, but originally he was best known for apartment building and ownership. His company is known as Arnel Development Company.
Argyros has always shown an interest in politics, and after a rather modest beginning at the central committee level, his talents for persuasion combined with his personal wealth led him to higher echelons of the GOP hierarchy, particularly when it came to raising money for Republican hopefuls.
One of his early business ventures was to purchase Air California with a partner, Bill Lyon, a retired general and homebuilder. Argyros learned early on that political influence could be a business asset, and Air California enjoyed a county-held umbrella against would-be competitors, particularly the aggressive Pacific Southwest Airline (PSA.) His interest in political matters started with the city of Costa Mesa, where his projects met with citizen resistance despite cooperation of developer-friendly City Council members. As his real estate holdings increased, he became more active in the Republican Party.
Argyros’ first venture into partisan political fund-raising was at the local level, and he agreed to be chairman of a dinner featuring Robert Dole, who at that time was Gerald Ford’s vice presidential nominee.
George put on quite a successful event, with the proceeds going to the GOP County Central Committee, but it was only a short time before he found the local level quite pedestrian, and gravitated toward Republican gubernatorial, congressional and presidential hopefuls.
With a small group of wealthy individuals, Argyros undertook the task of raising private funds to construct a golf course for Richard Nixon on the grounds of Nixon’s home in San Clemente, which had been called the Western White House during his presidency.
It was not long before Argyros’ reputation as a moneyman became well publicized in Republican circles, and his sponsorship was eagerly solicited by candidates for city councils on up to the highest post in the land. In fact, Argyros, with $259,750, was ranked number two amongst California’s largest campaign donors to candidates for national political office.
George Argyros has considerable holdings, and is a large contributor to charitable and educational causes as well as political. One of his beneficiaries, Chapman College in the city of Orange, has been known to do “studies and research” which, when publicized, seem to coincide with their benefactor’s political agenda. In the case of Measure A, the “Sensible Growth” initiative, a controversial study issued by Chapman College was circulated, predicting the loss of thousands of jobs if Measure A were to become law.
This contention was immediately disputed by other economists from local universities and a close reading of the study reveals that the Chapman conclusions were based on hypothetical assumptions and were relative only to these hypotheses. No connection can be proven that Chapman was being used for political purposes; it was no doubt a coincidence, accidentally beneficial to the developers. [I believe Tom is being sarcastic here – ed.]
One of the toughest business situations Argyros found himself in was when he decided to become involved in a major league baseball franchise, and purchased the Seattle Mariners in January 1981. The American League team had been struggling both financially and on the playing field. The Mariners’ stadium was a multi-sport facility administered by the King County (WA) district attorney’s office.
George took personal charge of the Mariners’ fortunes, even acting as a cheerleader. In some of the local papers there were pictures of him sitting in the stands, facing meager crowds, arms waving, trying fruitlessly to whip up some enthusiasm. Too far away from his home playing field, where one gesture of his hand toward his checkbook could electrify all five members of his Team OC (aka the “Board of Supervisors.”)
The Mariners did not meet financial expectations and Argyros, drawing on his political expertise and experience, went before the governing authorities in an attempt to get better terms on his lease. He told officials that he would have to file personal bankruptcy if concessions were not made. In the meantime he was reported to have become involved in the election of a new King County CEO, which is an elected office.
Argyros did not find King County’s DA office to be as receptive to pressure as was the Board of Creampuffs in Orange County. After a great deal of controversy, he ultimately sold the team to Jeff Smulyan and Michael Browning in 1988 for a reported $76 million. When Argyros announced the sale of the Mariners, he was described as being “on the verge of tears,” which is curious since he had purchased the team in 1981 for only $13.6 million.
Argyros remained an unpopular figure in the political and sports circles of Puget Sound long after his departure from the scene.
While he was listed in the ranks of the Forbes 400 richest Americans, he has had some setbacks. As an investor in Apria Health Care, a troubled home health care provider, he took over as chairman to try to right the ship and recover his $97.7 million investment that had plunged to $26.3 million in April of 1998. As chairman, he had urged the board of directors to refuse offers from other firms in the field, on the basis that it would not be prudent to sell out at “fire sale” prices.
When Apria board members discovered that he might attempt to purchase Apria himself, he resigned as chairman. A few weeks later he was off the board altogether.
One incident of his aura of self-appointed royalty occurred when someone observed that he was driven to work at the Costa Mesa corporate headquarters every day in a Rolls Royce which invariably parked all day in the blue-striped handicapped parking stall. An unknown person notified the Costa Mesa Police Department, and a uniformed officer came to the premises and wrote out a ticket for illegal parking. The driver came out and protested but the officer completed the citation and Argyros came downstairs later and moved the Rolls himself. After that incident, the car was never parked in the blue area again – it was seen daily parked in the yellow loading zone instead.
Although Argyros has a reputation for being aggressive – if not ruthless – in his business dealings, there is another facet to his wealth: He is a large donor to many charities, and unlike some others in the same circumstances, he does not insist on being given public credit or honors in return for his good works.
In politics, George Argyros has had no setbacks. He was close to the Nixon presidential and Pete Wilson gubernatorial campaigns, and he certainly had a great deal of clout in Sacramento with Wilson and in DC with Republican congressmen. The potential benefit of being supported by “generous George” was not overlooked by knowledgeable and ambitious office seekers.
Argyros is good at hiring competent people, and accordingly, he engaged former State Assemblyman and County Supervisor Bruce Nestande to be his governmental relations specialist.
Political influence is not the only method he uses to achieve his profit potential. He admits to being litigious, and when it appears that a particular project of his may be opposed by persons in the community he is not averse to filing lawsuits against them personally. (Representative government reduced to its lowest common denominator – the legal equivalent of a mugging.) He also filed suit in Costa Mesa against residents of that city who had obtained sufficient signatures to place a measure on the ballot opposing one of his developments.
The Newport Beach entrepeneur has spent considerable personal funds to promote construction of an international airport at the El Toro Marine base, which is being phased out as a military facility.
He was instrumental, using a surrogate (his Mother in Law), in filing a lawsuit against Leisure World [now Laguna Woods] homeowners’ association and its officers who are in opposition to his airport scheme. One of the director/defendants in the Leisure World case, who was the head of the GOP volunteer club in the enclave, did not have sufficient funds nor the desire to spend his retirement years in court defending himself against the Newport mogul, and moved out of the state.
Litigation is a two-way street, however, and in November 1999 one of Argyros’ companies, Brighton Homes, was on the wrong end of a $1.7 million judgment for construction defects on homes built by the company in Yorba Linda. Homeowner plaintiffs had originally sought $8 million in damages.
Details on his current project, the promotion of an international airport at El Toro Marine Base, will be included in the “Benchmark Ballot Measures” section of this book.
[UPDATE – Unlike many of the characters in this book, Argyros is still alive and active, with $3.4 billion at age 87. A year after Tom’s book, in 2001, President Bush made him Ambassador to Spain. The OC Weekly wrote a lot about him early in the century. As we all know, his pet El Toro Airport project was soundly defeated by the public, which led to the rise of Larry Agran and the Agranistas in Irvine, and the ongoing debacle of the “Great Park”… but that’s a story for THIS century.]
**Satellite and Minor League Donors**
In many of the campaign finance reports of various county candidates favored by the Irvine Company, the Mission Viejo Company, Argyros, and other prime donors, there is a cluster of lesser-known donors many of whom are vendors to the aforementioned. These consist of attorneys, consultants, engineers, customers, subcontractors, and similar ventures doing business with the Heavy Hitters. No sinister motive can be assigned to this UNANIMITY of financial support – it may be coincidental but the odds against that are astronomical. It may be that there is a certain mutuality of self-interests that find expression in the support of a single candidate. No matter what the reason, it is obvious that whenever the Heavy Hitters throw their weight behind a candidate or an issue, an interrelated group of donors rallies to the cause.
Another tie that binds seems to exist between Pacific Mutual Insurance Company and The Irvine Company. Pacific Mutual, whose headquarters are located in The Irvine Company’s Newport Center complex, often donates large sums to the same campaigns as it landlord. And a former top executive of The Irvine Company, Ray Watson, serves in the same capacity for Pacific Mutual. It is a fact, without assigning motive, that Pacific Mutual and The Irvine Company are almost always involved in the same campaigns as large donors. When questioned about this relationship, an Irvine Company executive conjectured that the lock-step campaign donations were probably do to the fact that Ray Watson was associated with both companies.
Other relationships are equally constant but it is difficult to determine the precise connection other than mutual business dealings with the larger corporations. It would be difficult, if not impossible, to prove that these tandem donations in any way constitute a deliberate attempt to deceive the public or to circumvent any campaign finance statutes. However, it should be pointed out that the TIN CUP ordinance drastically reduced large campaign donations from any one entity to a candidate for the Board of Supervisors. This caused the Heavy Hitters to become more creative with their donation policies when substantial financial help for a candidate was deemed crucial.
An excellent example of how a campaign donation limit may be circumvented is exemplified in the upcoming chapter “For Whom the Road Tolls,” in the section describing the election of John Cox to the Newport Beach City Council.
(Shirley Grindle has prepared an excellent recapitulation of donations made by the Heavy Hitters to Board members since 1980, shortly after TIN CUP became effective. This information will appear as Table 2 in Appendix D.)
C. J. Segerstrom & Sons
The Segerstrom family originally farmed the open land in what is now Costa Mesa and Santa Ana. As the community grew, they turned their efforts in part to land development, eventually building the huge South Coast Plaza complex.
The operation has been managed by Henry Segerstrom, a person well known and respected in Orange County. Like other developers, the Segerstroms had to deal with various layers of government as they sought approval for their projects.
The Segerstroms’ base of operations was entirely within the city of Costa Mesa, and their dealings in the beginning were limited to City Council and staff. But as their successful ventures grew, they did get involved in county issues, though not to the extent of the aforementioned Heavy Hitters, whose cumulative expenditures for “government relations” are astronomical. Compared to the Big Three, Segerstrom is in the low rent district.
Don Koll
Don Koll has been a longtime resident of Orange County who got his start as a close associate of Donald Bren, and in the early days Koll was able to purchase land from The Irvine Company for his projects. Koll Center was developed on acreage purchased thus, and was one of the first of many developments built on land adjacent to the airport.
In the early days, Koll hired Tim Strader as a top executive, and Strader, a well-connected attorney with ties to the Republican Party, was quite helpful in the field of governmental relations.
In the beginning Koll had a financial relationship with a major insurance company that provided his company with the necessary capital to expand operations and keep pace with the real estate boom in OC. Apparently this relationship was not able to survive, and as Koll Company grew, different operating segments were spun off into separate entities.
Koll is currently involved in the development of a waterfront project in Huntington Beach, and in the permit process he has become embroiled with local citizens and environmental groups who have opposed the construction of high-density housing tracts in an ecologically sensitive wetlands area. These tidelands, known as Bolsa Chica, have been the subject of ongoing controversy for years. In fact the corporate name Koll Development Company was recently changed to California Coastal Communities Inc, no doubt to deflect the focus of opponents and assist in the completion of this controversial project which has been on the drawing board for such a very long time.
Despite the fact that the Koll companies are not in the same league with the top Heavy Hitters, and despite having had some financial difficulties, they do make relatively generous political contributions to candidates running for office within their marketing areas.
Disney Corporation
Walt Disney Studios, which produced animated motion pictures, is headquartered in Burbank. The firm, which was headed by its founder and namesake, employed numerous artists at the original facility, most of whom lived in rather close proximity to the studio. The entire operation was not only successful, but the company was looked upon as a friendly and compatible neighbor, bringing talented and well-paid workers into the community.
In 1953, Walt Disney saw the potential of a new form of public entertainment, going beyond animated pictures, and acquired acreage in the city of Anaheim that had formerly been citrus groves.
In 1954, Disneyland was opened to the public, attracting visitors from other parts of California. As the concept became more publicized and accepted by the public, Disneyland developed into a magnet for vacationers from all over the globe. When it became necessary for the amusement park to expand, Disney found that certain permits and cooperation would be necessary from the city of Anaheim.
In the 60’s, Disney stayed aloof from partisan politics. On several occasions the County Republican Central Committee tried to rent their banquet facilities for fund-raising events, and Disneyland was reluctant to provide their public rooms even for the going rate. They had a reputation for an ability to serve adequate meals for large-scale gatherings, and although alcoholic beverages were prohibited, the venue was looked upon as a very favorable setting for partisan fund-raising events.
Disney eventually relented and allowed political parties to use their facilities, but by that time Anaheim Convention Center and local hotels had become available and Disneyland’s popularity as a site for partisan events declined.
It came as a surprise, after their seeming reluctance to become involved in county politics, to see them as enthusiastic backers of 1984’s Proposition A (The “Sensible Growth” initiative.)
They had become involved in city politics and exerted a great deal of influence in Anaheim. A local homeowners’ association described them thus in their monthly newsletter: “The Disney Corporation is a shadow government which stands alongside the civil government, and it rules We The People just as surely as any civil government ever did.”
The Disney Corporation became involved in politics at higher levels of government as its need for additional infrastructure included roads and parking. In 1993 the company teamed up with OCTA to formulate plans for a parking structure [the controversial Mickey & Friends Garage – ed.] and to facilitate federal funding for the project. Disney’s request for public funding for a huge parking structure in 1991 had been denied because Congress viewed the project as a handout.
Disney changed tactics and decided to work with the politicians at OCTA via access to four lobbyists and $427,218 in campaign contributions to a wide list of elected officials and political parties.
In 1991 OCTA passed, by a 9-0 vote, a $131 million package that included the parking structure along with freeway connecting routes. Dan Young and Sara Catz abstained from voting because they owned Disney stock. Voting yes was Anaheim Councilman Irv Pickler who had received $17,750 in campaign donations from Disney. Dan Young’s alternate on the OCTA voted yes but was later discovered to have a conflict since her family business had done contract work for Disneyland. In recent years there have been very few campaigns for Supervisor to which Disney did not contribute.
As its entertainment empire grew, the Disney Corporation became a major player with donations at every level of the political arena and in 1998 it was listed as the third largest corporate donor in California, having contributed $801,762 to both Republican and Democratic causes.
The entertainment giant’s relations with the city of Anaheim are covered in an upcoming chapter entitled “The Tale of Two Cities.”
The Lincoln Club
When the huge developments in Orange County were past the planning stage, it didn’t take long for the developers and their business associates to discern that it would be advantageous if elected officials controlling the final permit process were friendly to their corporate goals. At first this involved only the County Board of Supervisors, since much of the new construction was planned for the unincorporated areas of South County.
As residents in these areas reacted to Board decisions unfavorable to their communities, more territory was incorporated into new cities, and the developers were forced to respond by becoming involved in city politics.
Since a large percentage of residents living in the areas most impacted by corporate policies of high density were registered Republicans, the developers realized that to be effective in influencing local elections a Republican flavor must be maintained. The once-prestigious Lincoln Club was the perfect vehicle to achieve the developers’ need for “rubber-stamp” Supervisors and city councils, representing their interests throughout the county.
Lincoln Club membership increased quite rapidly, and while once their activities had been confined to partisan races in general elections under the leadership of Coalson Morris, the emphasis soon changed – and not too subtly – under Gus Owen (right).
In order to keep the Republican Central Committee a strong and valuable ally, the Lincoln Club became a major source of their financial support. In March of 1998 the Lincoln Club filed a campaign finance report with the County Registrar showing $50,000 in donations for the year to date! Prior filings reveal the same dimension of support in recent years.
Despite this financial support, the Republican Central Committee did not always go along with the GOP moneymen. After the bankruptcy filing, the GOP establishment joined with the Board of Supervisors in enthusiastic support of a sales tax increase (Measure R.) Support for this measure was not unanimously endorsed by Lincoln Club members; however its leadership (the Irvine Company, Argyros, and their front the OC Business Council) all campaigned for the passage of the $3 billion tax increase. This so-called “recovery tax” was decisively defeated in a special election.
As part of the club’s local political activities it became more involved in city council races, and in Irvine it teamed up with the Irvine Company, Mission Viejo Company, and the Howard Jarvis organization to defeat two City Council members who had won their posts by large margins. In all cases, the special interests believed a donation coming from the Lincoln Club would look more respectable (to the uninformed) than a direct cash payment from a developer who had unpopular projects in the communities.
In a campaign finance report filed with the OC Registrar in October 1996, the Lincoln Club showed donations to 39 separate city council campaigns in 18 cities.
The Lincoln Club does have the financial resources to be a major player in any local race, having reported over $300,000 in receipts in the years 1997-8. It makes donations to state and federal campaigns under two separate PACs. With the financial resources available to this group, and its demonstrated inclination to become involved at all levels, the Lincoln Club appears headed toward domination of every facet of the political process down to and including local neighborhoods.
Rancho Santa Margarita Co, & R. J. O’Neill
The Santa Margarita Company is the surviving O’Neill family business enterprise that owns the property not purchased by the Mission Viejo Company. The residual acreage is in the southeast portions of Orange County, and represents the potential for a tremendous surge in residential, commercial, and industrial construction.
The principals of this corporate venture are R. J. O’Neill and Tony Moiso, direct descendants of the original owners of the entire agricultural operation known as Rancho Mission Viejo.
After selling a portion of the ranch property to a partnership, which included Donald Bren and which in turn sold to the Phillip Morris Tobacco Company, the family members set about developing their wholly owned residual acreage into what are called “planned communities.”
Unfortunately, the county economy took a decided downturn and the Santa Margarita Company was forced to scaled back their projects to a considerable extent.
Both Moiso and O’Neill are active in politics, one a Republican, one a Democrat. From time to time they’ve been known to support candidates for partisan office, but the main thrust of their political involvement has been directed toward the Board of Supervisors, where they line up with other county developers to receive the corporate equivalent of public welfare.
The Rancho Santa Margarita Company does not usually contribute anywhere near the amount of money to candidates as to the first-string Heavy Hitters. Being close with its bucks, however, has not seemed to affect its ability to get densities approved. The one exception was in 1988 when the company was listed as one of the major contributors in opposition to the Sensible Growth Initiative (Measure A.) In 1996 the O’Neill/Moiso family heirs formed Rancho Mission Viejo LLC, and planning began for a 4000-acre development known as Ladera Ranch.
The prolonged recession in OC took its toll on the Santa Margarita Company and in 1996 it took in a financial partner. Phoenix-based DMB Consolidated Holdings LLC was brough aboard with Rancho Mission Viejo LLC as a managing partner.
Democratic Foundation
This was the Democrats’ response to the Lincoln Club. The membership of this organization, which has averaged approximately 120 members at any given time over the years, consists of businessmen, professional people, and retirees who support the principles of the Democratic Party in Orange County.
Howard Ahmanson
Ahmanson is heir to the founder of Home Savings and Loan, a successful financial operation based in Los Angeles County.
Ahmanson resides in Orange County and has been a generous donor to Republican candidates who are sometimes referred to as being part of the “Christian right.” He has not been known to expect anything in return for his campaign donations, other than a candidate’s allegiance to the basic principles Ahmanson reveres, such as family values and fiscal conservatism. [Ed. Maybe this became more of a thing since 2000, but Ahmanson is primarily known now as fervently anti-gay and anti-abortion.]
Ahmanson has acted in concert with another conservative, Rob Hurtt (listed below), and their combined resources have provided substantial financial support to certain candidates whose views they consider to be compatible with their own.
While he never publicly acknowledges the relationship, Ahmanson is considered allied with the “Cave Men.”
Container Supply Company, Rob Hurtt Jr.
The owner of Container Supply is Rob Hurtt Jr, whose motivation is similar to that of Ahmanson, stressing conservative principles particularly as they relate to Christian biblical beliefs. He was elected to the California Senate in 1994 and has helped other like-minded Republican candidates seeking office. Hurtt and Ahmanson often team up to support a given candidate who meets their criteria.
After Pat Nolan’s departure from the political scene in Sacramento, Hurtt joined forces with John Lewis and Ross Johnson to form a local version of Nolan’s “Cave Men.”
In addition to having the cushion of both Hurtt’s and Ahmanson’s personal finances, this group was able, as incumbents, to raise money from lobbyists in Sacramento. They made a formidable team in OC politics, and gained for the group both commendation and criticism for running “machine politics” in the county. Later, Curt Pringle became an influence and eventually was elected Assembly Speaker. He became an integral part of the “machine” both locally and statewide.
The same accusation of a machine approach to politics has been made with respect to the Heavy Hitters who run a parallel type of candidate support system mostly at the county and city level. Seldom do the two factions compete in a given campaign, but it does happen.
In the late 60’s and 70’s the Democrat incumbents, with help from the Assembly Speaker in Sacramento, had their own machine in operation but as Republican registration in OC increased, party lines became blurred and financial rewards replaced party principles as motivation for candidate support.
Kathryn Thompson
Kathryn Thompson is a homebuilder who does business with the major landowners, constructing residential developments on land acquired from them. A Republican, she has been active in partisan politics as well as in county nonpartisan races.
While her projects are large scale, Thompson cannot be included as a major donor to the same extent as the larger corporations she does business with.
Purchasers of homes from her have filed minor lawsuits claiming that her description of the tracts she offered for sale were misleading. In one instance, a Thompson project carried the name “Laguna” in its title, and homeowners filed suit against the builder when they discovered that the tract was not actually in Laguna.
In another case, Thompson named one of her developments Laguna Audubon. The prestigious Audubon Society demanded that its name be taken off sales material promoting the homes, and ultimately Ms. Thompson put a tiny disclaimer on her outdoor signs stating that the project did not have approval from the revered bird-loving society.
Thompson was a vigorous opponent of the Sensible Growth Initiative (Measure A), and lent her support to the embattled Board of Supervisors during the controversy. Her husband, Gus Owen, is well known in county Republican circles, and is a past president of the Lincoln Club.
Bill Lyon
Bill Lyon, a retired Army Air Force general, was a partner with George Argyros in ownership of Air California. Lyon is also a homebuilder, and an occasional partner with Kathryn Thompson in specific tracts, but his wholly owner residential projects are called Lyon Homes.
During the campaign for the Sensible Growth and Traffic Control initiative, Lyon was first to raise prices on his inventory of new homes, warning potential customers of impending housing shortages. In some cases, unwary buyers were asked to pay as much as 20% over pre-initiative sticker prices. Despite this windfall financial bonanza, Lyon was perhaps the most ardent foe of citizens’ efforts to protect their own property rights. He may have made sufficient profit from the publicity surrounding Measure A to build a monument to the despised “slow growthers” who inadvertently provided him with a surefire excuse to raise prices!
Lyon has been a significant campaign donor to Republican candidates for partisan and nonpartisan office. In late ’99 Lyon Homes and the Presley Company entered into a consolidation of sorts and the resulting company retained the name William Lyon Homes.
John Lusk
Lusk Homes was the trademark of the Lusk enterprises, and John Lusk was at one time a major player in state and county politics.
He was one of the early homebuilders in Orange County, and his fortunes soared with the demand for new housing. He often paired up with Bill Lyon in fundraising events and his financial support was eagerly sought by GOP candidates, at least up until the late 80’s when, after acquiring a ranch on Northern California, he began to support candidates from both parties for the state legislature. He applied the same techniques he had used so well in OC to use political clout to benefit his developments.
His ranch, known as the Feather River Ranch, was located in Sierra Valley. The area was devastated by several years of drought conditions, and the local agency having jurisdiction, the Sierra Valley Groundwater Commission, had restricted use of irrigation wells in the area, prohibiting the use of pumps before April or after September. Lusk had 20 wells on his property and was desirous of keeping his ranch green all year. He was able to receive special treatment from the Assembly’s Water, Parks & Wildlife Committee to change the law so that the local agency could not restrict his year-round pumping, which was depleting the water levels in all of Sierra Valley. The rock-ribbed Republican developer also enlisted the help of State Senator Cecil Green, a Democrat, who authored the original legislation. In a campaign finance report submitted by the Friends of Senator Cecil Green, Lusk Homes is shown as contributing $500 and Baldwin Bros. $1000. The avowed liberal Democrat Senator thus received help from staunchly conservative OC Republicans.
Lusk also contributed substantial sums to 10 members, Republican and Democrat, who served on the 13-person Assembly Committee.
Despite having maximum political influence as typified by the Sierra Valley episode, Lusk was not able to ride out the building recession of the early 90’s. He was forced to reduce his contributions from $165,000 in 1989 to $34,000 in 1991.
By the summer of ’93, the former giant of OC homebuilding had defaulted on four loans with the First Interstate Bank totaling $58 million. The bank was trying to peddle the loans at that time by offering Lusk Notes at a 76% discount. John Lusk passed away in March of ’99 at the age of 91.
Barry Hon
Hon Development has been in the building and development business for a number of years, led by the CEO, Barry Hon. While not in the same category as the super-wealthy campaign donors in Orange County, Hon has played a significant role in the contests for Board of Supervisors over the years.
Building Industry Association
The Building Industry Association has an OC chapter, which operates under the California state parent organization of BIA. Both groups make donations to candidates who favor their policies, and they have been very active over the years in opposing or supporting ballot measures affecting their industry.
Lou Cella, M. D.
Although reported to be a Republican, Dr. Cella first became active in the 60’s as a supporter of Democratic candidates for office in Orange County.
He reached the pinnacle of political influence in the 70’s with huge donations to various candidates of both parties. He and his associates were referred to as The Coalition. For more on Dr. Cella see the chapter “Political Convictions.”
Frank Michelena
Frank Michelena is listed under “Consultants,” and usually his role is to advise firms he represents which candidates merit their support. Thus, Michelena’s name does not appear that often as a major donor; however, he is listed as the primary source of funds on some Campaign Finance Reports, such as that of Ralph Diedrich.
Ed Laird
A recent addition to the Heavy Hitter list, the name Ed Laird appears as a major donor on a list filed with the Registrar in ’98. A resident of Huntington Beach, Laird owns a specialty coatings manufacturing company and reported financial donations of $106,000 in ’98. His support is directed in favor of Republican candidates for state and local office.
[UPDATE – We have covered Ed Laird’s recent shenanigans, he is still a tireless backer of HB’s worst Republicans, and a close friend of disgraced felon Mayor Dave Garofalo. In gratitude, the current Republican Council majority recently named a street after him, and – here – enjoy a musical interlude with defeated nutjob Congressman Dana Rohrabacher singing an ode to Ed at that street’s grand opening.]
Steve & Paula Meyers
Another late entry into the OC political landscape, Steve Meyers reported donations of $99,278 in ’98, all of which went to candidates OPPOSING the proposed El Toro airport. Meyers, the owner of a highly successful business in Irvine, is personable and energetic but a rank amateur in the slippery realm of OC power politics.
Unlike most of the other Heavy Hitters, Meyers is a hands-on participant in the ventures he supports. Other neophytes who have tried the same approach have found it to be a costly practice.
Los Alamitos Racing Association
Owner/operator of a mixed-breed pari-mutuel horse racing enterprise located in Cypress. The principle stockholder is Ed Allred, an MD who operates 20 health clinics in Long Beach and others areas for women with problem pregnancies.
This organization has two political goals, one of which is to protect its horse-racing operation from unfriendly legislation emanating from Sacramento; the other is to influence legislation compatible with the “health care” that Allred clinics provide to women. [hmm… snotty reference to abortion? – ed]
Los Alamitos is a party-neutral but generous donor. In 1998 it reported spending $105,199 for political campaigns. In ’96 “Los Al” contributed the following amounts to stated anti-abortion candidates: $13,000 to Ross Johnson, $5000 to Friends of Pringle, and in 1998 they reported giving $15,000 to Scott Baugh, $10,000 of which was listed as a “loan.”
OC Employees Association (OCEA)
Reported giving $100,854 to the Yes on Measure R campaign in 1995 (county “recovery” sales tax), the association has also donated rather substantial amounts to various Supervisor candidates over the years. (See earlier chapter “The Role of Volunteers” for more information on this organization.)
Harry Rinker
Wealthy home and apartment builder, whose involvement as a major donor seems to be on a more selective basis.
Randall Presley
Builder with ties to the GOP. Often on lists of major donors to county campaigns. Merged with William Lyon.
Shapell Industries
Also known as Nathan Shapell and S&S Construction. Shapell builds single family homes and their activities in OC have been concentrated in South County. Owner Nathan Shapell is an elderly individual who cites his experiences as a Holocaust survivor when his permit applications seem to be meeting with some resistance from the public. The firm has been quite generous with its campaign donations to incumbent Supervisors.
Al Baldwin
Al Baldwin operates under other names including Baldwin Homes. At one time the Baldwins were to be found amongst the largest donors to Supervisor candidates. The firm suffered some financial reverses and became embroiled in bankruptcy court proceedings, which apparently diverted its attention to other priorities. In recent years the Baldwin name has not been prominent on lists of major donors.
Shea Homes
Shea Homes purchased the remaining vestiges of the Mission Viejo Company, but they were major donors before and after that time. As in many cases, the predevelopment agreements eliminated the necessity for developers covered under these agreements to constantly seek concessions from the Board.
Fieldstone
Major builder of residential units in OC. Owned by Peter Ochs, this corporation seems to have a different perspective of its role in OC. It does not appear to be as aggressive as other developers in attempting to control the political process. Fieldstone markets a quality product, and seems to flourish without political intervention or help.
Nossaman, Gunther, Knox & Elliott
This is a law firm representing many governmental agencies, but it is best known in OC for its legal work on behalf of the Tollway Agencies.
Inland Groups (Buck Johns)
Headed by Buck Johns, the Inland Group makes contributions from time to time but on a smaller scale than others do in this category. Republican-oriented, [ED. We have written a lot here about ol’ Buck Johns!]
Western Disposal
Engaged in trash hauling, and supplies their services to various municipalities. Local donations mostly.
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