Bungled Boutique Hotel May Be In Big Trouble

Friends probably remember that FFFF has been relentlessly critical of the dubious scheme approved by our City Council to underwrite a downtown boutique hotel and uber-dense apartment project on a parking lot owned by the City and used by Metrolink commuters.

Here’s a reminder: three councilmembers Bruce Whitaker, Shana Charles and Ahmad Zahra voted to sell this property to a developer for a mere $1.4 million (less site material removal) while simultaneously time jacking up the value of the land by approving density 2.5 times the limit specified in the Transportation Center Specific Plan. It was a gift of public funds at least ten million dollars.

Here’s the fun part. The original and completely unqualified baby daddy of the project, Craig Hostert, didn’t have the wherewithal to make the deal. After years of failing to perform on his Exclusive Negotiating Agreement and numerous extensions, Hostert’s West Park Investments, LLC joined its non-existent forces with TA Partners Development of Irvine, Johnny Lu, proprietor.

Mr. Lu, the new face of the project, appeared at council meetings to seal the deal with a ration of gobbledygook bullshit.

Now it appears that Mr. Lu may not have been the best choice of partner according to the Real Deal Real Estate News.

Why is Johnny smiling?

It seems that Johnny has gotten himself in over his head on two projects in Irvine, including second bridge loans that he has now defaulted on. And of course Sunayana Thomas, Fullerton’s crack “business development” director seemingly failed to inform the City Council of Mr. Lu’s impending financial embarrassment, something that should have been revealed in even a cursory perusal of TA Partners’ asset to debt ratio and its balance sheet.

And then, of course there is the problem with the completely incompetent concept of rushing the approval to transfer of title to the land, before the deal had received final approval.

By now the Council has possibly, though not necessarily been informed by the Fullerton City Manager, Eric Leavitt, of the problem, but where does the deal stand? Title to the property has been transferred from the City to and through Lu’s companies*, presumably for the original sale amount. But if TA Partners can’t perform, will the City get its now very valuable property back, or will it be encumbered by bankruptcy receivers? Will the City, in order to save face as it always has, permit Mr. Lu to assign his rights and interests to another party as a face-saving strategy? If that happens, will the original bad idea still go forward, or will the Council approve something even worse as a sop to a new developer so to avoid admitting their horrible mistake in the first place?

You can try asking Whitaker, Charles, or Zahra, the architects of this inexcusable and completely avoidable mess, but don’t hold your breath waiting for a response.

* Topic of future post

Yes! Yes, I Can Imagine It!

This fun image popped up on the City of Fullerton’s splash page very recently.

Looks like the HR department is interested in recruiting fresh talent into the ranks, and I wish them luck. Their success hiring real talent over the decades has been a little iffy.

And then I reflect that this blog has been working and working hard for Fullerton’s Future since 2008 – 15 years with only one sabbatical.

No, we haven’t been paid by the taxpayers, and no big pension accrual for us. None at all, in fact. No gratitude, of course, from the high and mighty inside the Seventh Wall, as Professor J.H. Habermeyer would put it.

Still, we soldier on, working for the future of Fullerton.

The Trail to Nowhere Phase I Scam

You know, the more I have looked into the ill-fated “rec trail” that would have wasted $2,000,000 in public funds, the more I notice a trend of ignorant misstatements and misdirection; outright prevarication and a lot of hopeless wishful thinking.

Since it’s so hopeless, I can dispense with the wishful thinking (for now). The deliberate lies will be the theme of another post. This post will deal with the misstatements concerning the so-called “Phase I” of the Trail to Nowhere that City staff and trail supporters keep talking about as some sort of achievement. I really wonder if any of them have ever actually seen what they are talking about. I went there today, and I’m here to help.

First, here is a satellite image of “Phase I” that was put in place at the same time the Union Pacific Park was built. The black line is superimposed over the “trail” – a sidewalk running next to a decomposed granite path along which an horse railing was thoughtfully added, presumably for the equestrian enthusiasts in the barrio.

The trail, such as it is, doesn’t even start at the UP Park. It starts just west of it. It runs a few hundred feet and makes an abrupt 90 degree turn, crosses the paved alley about 50′ and then it makes another 90 turn to the left and eventually follows the descending grade of Highland Avenue where it stops at Walnut Avenue at the bottom of the railroad underpass.

Phase I’s inauspicious beginning. It gets worse.
90 degree turns ahead…
Down she goes…no Phase II in sight.

Does any of this “trail” meet any sort of basic requirements? It sure looks like a design mess to me. And of course this “facility” has been completely neglected by City maintenance and is covered in weeds, broken railings and strewn with trash and vandalized by graffiti.

It’s perfectly obvious to anybody with a modicum of commonsense that this effort has no broader connectivity at the east end. It has no connection to the Transportation Center, Downtown Fullerton or parts east, as continuously claimed by promoters of the “Phase II” extension. It has no connection to anything except the fenced off UP Park. In fact, the thing is so obviously useless for its intended purpose that the City used the adjacent parking stalls for homeless car campers. Who would care? The route behind the Elephant Packing building smells like it’s been used for public urination. A lot of it.

The sad fact is that of course nobody uses this trail for recreation purposes, and for obvious reasons. It’s useless and it’s often dangerous.

Local youths recreating on Phase I…

The answer? Phase II of course! The problem with this little useless zig-zag is to connect it to Independence Park with a two million dollar extension, and the problem is solved.

Here’s the City’s plan:

But how is that supposed to work, exactly? If you look at the City’s proposal image above you can easily see that the Phase I part doesn’t even line up with the would-be Phase II to the west, indicated above by the arrow. But the asphalt alleyway does.

Uh, oh. It’s Fullerton, Jake…

This would have meant that Phase I isn’t even finished and would require further modification, a scope of work not discussed by anybody, not shown on the plan above, not budgeted, and one that would mean the horror of a bike trail running alongside the existing paved road to get to Highland Avenue. And then of course there’s the problem of actually getting across Highland and traffic line of sight safety – another impediment to recreational fun.

While the questions of Phase I’s utility and connectivity to Phase II are now, fortunately, moot, it’s instructive to observe the design failure and the real truth: this would never have been a connection to any other part of eastern Fullerton or linkage to any regional trail plan as relentlessly cited by staff. The only way Phase I was useful was its availability to justify an extension. Unless you were to look at an actual map.

The Scarcity of Public Information

The trail didn’t go anywhere, but it sure was short…

As might have been predicted, someone made a Public Records Act request on October 12th for information regarding soils and environmental testing on the abandoned Union Pacific right-of-way, purchased by the City of Fullerton in the 1990s.

Why is this request germane to FFFF? Because the blog has speculated about contamination along the UP right-of-way, in view of previously discovered toxicity that closed the UP Park and because it is known by the EPA, the Orange County Water District, and the City of Fullerton’s Engineering Department that the carcinogenic chemical trichloroethylene was discovered at 311 S. Highland Avenue, a heavy industrial property that lies along the proposed recreation trail on the UP right-of-way. It is also known that contamination is moving south and east from the aforementioned property.

Is it safe? Is it clean?

Needless to say, none of this information was given to the Fullerton City Council when they considered approving the State Natural Resources grant that would have paid for most of the trail construction.

Here is the request:

Well, that’s a pretty simple request. And, as you can see, the City claims that it has complied by issuing a “full release” of documents. Here’s what they released:

Enjoy yourself reviewing these documents on the City Clerk’s website page. It won’t take you long. Of the 6 files listed none has anything to do with soils or environmental testing. From this response, such as it is, we may reasonably infer that no testing was done, or if it was, the documentation is lost. In either case the proper response should have been “no relevant documents exist.” Instead City staff posted completely irrelevant and non-responsive documents onto their website. Was it just an effort to look responsive, somehow? Did they even care?

Don’t know, don’t care… (Photo by Julie Leopo/Voice of OC)

If we grant that the City’s functionaries are somewhat honest as they go about their business then we have no choice but to conclude that no soils or environmental testing have ever been preformed by the City or its agents along the right-of-way and that this has led to an egregious omission of information to a City Council being asked to spend $2,000,000 building a trail and no one knows how much securing and maintaining it.

The Poison Trail to Nowhere?

Is it safe? Is it clean?

Is the ground under the now deceased Trail To Nowhere polluted with a toxin that nobody bothered to tell our City Council about?

I don’t know. But I do know that the question came up the other day and has the ring of truth to it.

In the last FFFF post about a bike trail that runs parallel to the now dead Trail to Nowhere, one of our Friends by the name of Observer pointed out the existence of trichloroethylene contamination at 311 South Highland Avenue and provided a handy link to a government website that indicates polluted sites.

Sure enough, 311 S. Highland Avenue is indicated on the map, and this address runs adjacent to the proposed trail west of Highland Avenue. The blue square represents an active contaminated address.

A trail runs through it…

Trichloroethylene (TCE) is used as a solvent for degreasing metal parts during the manufacture of a variety of products. This is really nasty stuff, and was used by manufacturers of circuit boards to clean stray solder and other unwanted material off the boards. Guess what? Hughes used to make circuit boards on this property several decades ago.

Did our crack city staff know about this situation? If they did, they sure weren’t talking. We know that 20 years ago the same folks bought the former UP property without doing any due diligence – which is why the UP Park had to be closed right after construction for remediation of toxins and gained the moniker “Poisoned Park.” Did anybody in City Hall learn anything from that previous disaster?

The test of that question is whether anyone commissioned a so-called Phase I Environmental Study, used to assess potential environmental issues on a given property, in this case, the long, skinny trail site. If they had they surely would have discovered the history of 311 S. Highland, and that it was long ago identified by the Environmental Protection Agency as contaminated. At that point a Phase II study should have been conducted to determine if indeed, the long UP right-of-way was contaminated like the eastern end of the UP property was.

Of course, none of this was discussed at the City Council meetings pertaining to the State grant or the trail design; fortunately Dunlap, Whitaker and Jung made the right decision without knowing any of the back story about the proposed trail’s neighbors.

Tanned, rested, and ready.

There is more to be learned about what happened, or, to be more precise, what didn’t happen in this process. Rest assured, our crack team of investigators will be pursuing this issue, and as we learn more we’ll be reporting what we know with the Friends.

This Has Been a Zahra Production

Ahmad is a film producer, we’ve been led to believe – by Zahra himself – although the body of work is a bit thin. So thin, in fact, as to be transparent. But last Tuesday he gave every indication that a Zahra production need not be a moving picture.

The casting call went out to gullible kids and even those of advanced age who should know better: a protest is needed. The underserved, bikes, trees, arbols, clean air, chubby kids finding health and happiness, all in jeopardy; in other words the ludicrous Trail to Nowhere, a $2,000,000 boondoggle vanity project whose only function was to make an appearance on a future Ahmad Zahra campaign mailer. Streetside they presented a pretty thin line whose handmade signs revealed the lack of imagine one associates with Fullerton Observers.

The protesters spoke, too, wasting lots of the council’s time, repeating the same nonsense previously scripted by Zahra

The Chief said I could have this neat shirt if I joined his team…

Zahra’s acolyte named Egleth Nunccio actually tried to get 18 minutes of talking time by taking the time allotted to five women standing behind her. Some of those responding to the casting call gave indication that they were nothing other than paid crisis actors employed to bulk up the chorus. Some make a sad presentation and sure didn’t look like rec trail advocates.

Will protest for a sandwich and a smoke…

So the production came and the production went off. The protesters had been told by their handlers that there was a chance the rejected State grant could somehow be clawed back from the brink of termination by a council suddenly enlightened or frightened by the Zahra music-less comedy. It can’t. Surely, Zahra knew this even as his little band wasted everybody’s time. His real goal was once again to look like he was accomplishing something. And more importantly, the petulant Zahra wanted to embarrass his colleagues.

And there are people in Fullerton who still wonder why Zahra can’t get himself chosen Mayor by his fellow councilmembers.

The Culture War

They were large and slow with a mean streak.

You know, we hear a lot about the “brain drain” a situation in which some corporate entity or other suffers from an exodus of its senior managers, generals, archbishops, or whatever titles fit the type of organization.

The same thing pertains to government corporate bodies, too: when department heads head for the hills we hear of the loss of senior talent and expertise that bodes ill for whatever the agency’s mission might be. Lamentations are cried about the loss of “institutional memory” a sad situation in which the accumulated wisdom of the agency is undermined, sapped, or otherwise depleted.

But is this a bad thing?

Let’s reflect on the very nature of corporate behavior. Sure, the mission remains: enrich the shareholders, protect the nation, pass on spiritual uplift, fix the potholes in the road. But of course there’s more. The corporate mindset leads to gigantism, arrogance, defensiveness, self-righteousness and above all avoidance of outside scrutiny.

In effect, the mission of corporations becomes encrusted with the dead weight of the various pathologies that they engender. The consequence is not accumulated wisdom, but rather a culture of ossification that is static, slow, non-responsive and self-satisfied. They lose flexibility, agility and effectiveness.

If we consider Fullerton’s history over the past 30 years it becomes fairly evident that the culture of our government demonstrates the symptoms of ossification. The same types of issues are dealt with in the same kinds of way: bureaucrats display the same kinds of attitudes and behaviors; our elected representatives are replaced and yet never seem to change in their understanding of their jobs. The emphasis in City Hall is as much directed toward self-preservation of the status quo as of taking care of municipal problems; avoiding accountability is more important than fixing the streets. Avoiding loss of control and scrutiny by the public have been, and are the key goals, it seems, of the people we elect and the people we pay to work for us. And protecting the corporate culture is always of paramount importance.

The pages of FFFF are replete with examples over the past 30 years that will amply support my thesis. In my next post I’m going to share one of these examples: a problem that was created by the City over 20 years ago, and which lingers today.

The Associated Road Saga. An Unnecessary Conflict

If I knew what I was talking about this wouldn’t be Fullerton!

Yesterday I posted a letter from the Gingerwood HOA claiming that District 3 councilperson Shana Charles lied at a public workshop about having consulted them about the proposed re-alignments on Associated Road that are being proposed by Fullerton’s Engineering Department. That’s a pretty bad look for a novice politician.

So now, Friends, let’s explore what’s being proposed. It’s one of those ankle bone-connected-to-the leg-bone kind of things.

First, the City is proposing a sewer and water line improvements in Associated Road between Bastanchury and Imperial. When this is complete, our engineers reckon, it would be an excellent time to repave the street. And then, why not reconfigure the roadway and reduce the lanes from four to two, and add street parking that will act as a physical barrier for a “Class IV” bikeway. Here’s an example of what it would look like, courtesy of Caltrans:

They did what, now?

The City reasons that the reconfiguration is justified because the traffic “warrants” are low enough to re-designate this stretch of Associated Road to a mere “local collector” in traffic engineering terms.

The folks who live in the various condo projects along Associated, like Gingerwood, are up in arms about this, and who can blame them? They reason, among other things, that turning out into the one lane of traffic would become more hazardous as their lines of sight will be blocked by parked cars. They will also have to slow way down, in traffic, to turn into their entries. Then there’s the issue of strangers parking in their neighborhoods – overflow from nearby apartment inhabitants and visitors to Craig Park.

This entire situation smacks of social engineering on a small scale. I have no idea how many bikers use the existing bike path and if the new configuration is even safer using parked cars as a barrier. But this seems like an unnecessary battle for City Hall to fight against its citizens.

I can’t think of a convincing reason not to restripe the street the way it is and move on.

Anyhow, the discussion of this matter is on the City Council this week (Item #14) where we can expect a lively confrontation between the irate neighbors and the people, like Shana Charles, who are behind this.

Shana Charles. Liar?

Yes, apparently so, at least according to the Gingerwood Homeowners Association.

It’s only a lie if you get caught…

The topic of this alleged prevarication is the proposed reconfiguration of Associated Road that would remove a lane of auto traffic and permit on-street parking. I’ll be writing about the details of this “project” in a bit.

This proposal seems to have germinated within the walls of City Hall and was presented to affected parties along the road. One of them is the Gingerwood community HOA that wasn’t real pleased with comments made by their councilmember, Shana Charles.

Uh, oh. It appears the good doctor has been telling stories in order to pedal this project past wary homeowners who don’t want cars blocking their sight lines when they emerge onto the fast traffic of Associated.

Lying to constituents to push a project you like but they don’t suggests a moral and ethical vacuum.