The City is meeting tomorrow to to talk about putting a sales tax on the November ballot.
The staff report wrongly states that the City Council requested this item, which is an intentional lie. The matter was placed on the agenda by the minority of Ahmad Zahra and Shana Charles, two individuals I wouldn’t trust to run a lemonade stand.
Show me the money…
These two fought long and hard to discuss the issue on June 4th, even though no public notice of a tax was on the silly revenue-grab agenda.
Tomorrow we will see a small army of Fullerton Boohoos crying out for a 13% sales tax increase on the ballot. Obviously they want to go for a general use tax because that only takes 50%+1 to win, whereas a special use tax requires 66% – an almost impossible hurdle.
But there’s the rub. A general use tax requires a 4/5 council majority to put it on the ballot, and the pro-tax Zahra and Charles don’t seem to be able to manage the simple majority required to put a special use tax on the ballot.
So what’s the point of this charade? We’ve seen this Zahra act before: mobilize his coterie of “underserved” residents to harangue the Council, and thus embarrass Jung, Whitaker and Dunlap.
Put your money in the bucket over there!
But this is not the ludicrous Trail to Nowhere, and bullying won’t work. There’s only one meeting available to get this done, and tomorrow won’t be it.
“Appetisers” for all…
The only question I have is whether District 4 candidate Vivian Kitty Jaramillo will stand up and support the tax.
FFFF has already reported on some of the colorful financial background of Johnny Lu of TA Partners, our City’s stand-up partner on the so-called “boutique” hotel project at the railroad tracks. This hot mess even has a name: The Tracks at Fullerton Station. The development has morphed into a monstrous minotaur by adding approval for a massively dense apartment – an amalgamation which gives us a shocking 130 units per acre, overall.
Well, anyway, we previously shared the news that Johnny was in default on massive construction loans he somehow finagled for projects in Irvine a few years ago. The lender on those has foreclosed on those properties.
That can’t be good…
And here’s some even more recent news. It seems that Johnny has waded out into more legal problems over in LA, according to The Real Deal, a real estate news source. Here’s the thrust of the complaint by bamboozled investors on a “project” at Playa Vista:
“The investors — who form an entity called RUC14 Playa LLC — sued Lu, Liu and TA Partners, alleging commingling of funds, fraud and misrepresentation, court records show. Attorneys for TA Partners, which have requested for arbitration in the case, did not respond to a request for comment.“
Johnny and his partner, Larry Liu, declared their bankruptcy on the Playa Vista project. But let’s give the misunderstood boys a break. A little contrition goes a long way, right? Said Larry:
“We would like to offer our apology for the non-compliance during project execution,” Liu wrote in the letter. “Self-reflection is needed and I would like to apologize.”
Whatever any of this means to “TA Westpark LLC.,” the corporation that was awarded the Fullerton project entitlements (without any competition) remains to be seen. But now Johnny and Larry have equity – and boy have they got equity; see, Councilmembers Zahra, Charles and Whitaker handed them a bonanza – a plot of land available for hundreds of units – for a mere pittance: $1.4 million less associated costs.
Ms. Charles happened to mention at a council item about raising funds for Fullerton’s fiscal disaster, that the boutique hotel plan was moving along. But there was no mention of the fiscal disaster facing Johnny and Larry Enterprises. Does she even know? Does she understand what is happening? Does she care? Probably no on all three.
The plan here is crystal clear. At this point nobody is going to lend Lu and Liu a bent nickle. But these fine fellows will have entitlements worth tens of millions on this project; a project that never should have happened in the first place – an unsolicited proposal by a local guy who had no chance of building a birdhouse.
This project will be reassigned to a third party, someone the City “business development” expert bureaucrats will be sweet-talked into recommending. And then Johnny and Larry will quietly disappear from Fullerton with millions belonging to us.
Some folks have been asking about the fate of the idiotic “boutique” hotel project that had morphed into a hideously overbuilt hotel/apartment hippogriff that is twice the allowable density permitted per the City’s own Transportation Center Specific Plan. Of course the project was never contemplated at all in the Specific Plan, so who cares, right? Fullerton being Fullerton.
In an act of utter incompetence the City actually rushed the approval to transfer of title to the land, before the deal had received final approval. Then they gave it away the land for pennies on the dollar.
Friends may recall our last October post in which we discovered that the new “developer,” one Johnny Lu of TA Westpark LLC, was way upside down on loans he had somehow leveraged on apartment blocks in Irvine and was in default.
You may also recall that Lu started shifting the property to different corporations, the first of which, a Delaware corporation, was non-existent. And just for grins, Mr. Lu changed the property description, too, when he later deeded it back to his California Corporation.
Anyhow, it looks like Johnny has finally created and recorded the appropriately named Delaware corporation in March – only two years too late, but, hey, not bad for Fullerton, right?
There has been nothing but radio silence from City Hall as to the status of Mr. Lu and whether he has met any of the stipulated deadlines in the Development and Disposition Agreement, but as we have learned in the case of the Florentine/Marovich sidewalk heist, contractual obligations mean nothing when the “I Can’t Believe It’s a Law Firm” of Jones & Mayer is your City Attorney. Recently, cluelessly verbose Shana Charles indicated that the project was still alive and well. She didn’t mention Mr. Lu’s financial embarrassment, but then nobody else has, either.
And now for some sadly interesting news. It turns out the original Founding Father of the boutique hotel concept, Craig Hostert of West Park Development – the guy who sold the idea to Jennifer Fitzgerald, Jan Flory, Jesus Quirk Silva, Ahmad Zahra, Bruce Whitaker, et. al. – died in late May.
Hostert
Poor guy. He went to his Reward after getting pushed out of his own scheme, and sticking us with the appalling, metastasized mess the concept has predictably morphed into; showing that once again, no bad idea goes unappreciated in downtown Fullerton. Being Fullerton, of course.
Last Tuesday the Fullerton City Council voted 4-1 to approve the ’24-’25 city budget. Whitaker, as usual voted no. The budget projects big deficits as we’ve already heard.
After that the Council was presented with “revenue enhancement” ideas – the same old nonsense that we’ve already talked about, here. At first these ideas were simply floated to make it look like somebody had given some thought to find other ways, however silly, to address the tsunami of red ink; but in reality the point was to push a general sales tax, a movement that had been subtly going on for many months.
However the proposals agendized last Tuesday did not include a sales tax this fall, a sure indicator that the City Manager has polled the Council and knows he doesn’t have the votes to put it on the ballot. But that didn’t stop Councilmembers Charles and Zahra from pitching and pitching and pitching the idea; and finally supporting each other to get the issue of a sales tax on the an agenda, pronto, in time to schedule it for the November election.
But before that happened the public was treated to some of the most blatant and self serving re-writing of Fullerton history I have ever heard.
If I knew what I was talking about this wouldn’t be Fullerton!
Shana Charles started off with long-winded blabbering that was irrelevant, self-contradictory, confusing, and erroneous. Of course – “decimated” staff, the ill-effects of right-sizing,” reduced response times – the usual liberal litany of problems were simply meant as an introduction to the sales tax proposal. Her complaint was that previous councils had made mistakes, not by exercising fiscal restraint, but by “cutting to the bone.”
Charles then lauded the wonderful benefits that the City of Placentia derived from it’s Measure U sales tax that saved it, having declared bankruptcy – a statement completely false. She failed to mention the fact that Placentia has saved millions by getting their “fire fighters” out of the paramedic business, an idea of which her Fullerton fire fighter union pals are terrified.
While patting herself on the back for very recent staff and service level increases, she failed to see the rich irony of her own incompetence on the edge of a precipice: a situation well-understood when she voted for last year’s budget.
More economic development, better wardrobe…
If Charles blathered nonsense, Zahra just lied about Fullerton’s recent fiscal history, most likely because he has been on the City Council for 6 years, and has his greasy fingerprints all over the budgetary disaster.
According to Zahra, our problem reaches back decades and only now is the Council addressing the problem. Of course our City Councils have made bad decisions over the years, but the current disaster is of very recent vintage and has also occurred while he has been on the City Council.
For several years in the mid and late teens Fullerton was dipping into reserve funds to pay the freight, even as Zahra’s allies Jan Flory and Jennifer Fitzgerald and Jesus Quirk- Silva were lying to the public about the budget being balanced. It wasn’t. In fact the City continued in its cavalier way until Fred Jung and Nick Dunlap joined Bruce Whitaker on the council in 2020.
Let me count the ways…
Zahra related how he, as a precinct-walking candidate, noted how people wanted better roads and how his predecessors had promised them, too, but that they failed. He didn’t note the fact that Fullerton’s public safety employees were hogging up bigger and bigger shares of the budget – as they still do.
The subject of Zahra’s failed 2020 Measure S sales tax came up, a sore subject, apparently, since his underserved constituents in D5 voted for it. So let us not stop from revisiting it, and right now! Charles chimed in that well she people she spoke to voted against it because there was no sunset provision, and, get this – because there was no oversight committee!
As an aside, I have to share that Zahra made an hilarious little speech about he could not support an infrastructure improvement bond because voting for municipal debt would keep him awake at night!
It’s not rocket science…
Bruce Whitaker made just about the only insightful comment of the discussion, namely: that cities can control costs but they can’t control revenue, an observation that flies in the face of the revenue enhancement propaganda, but that is perfectly true. As has been stated here before: nobody even knows if an Economic Development Manager even pays for himself in terms of incremental tax increase.
I will wrap this up by acknowledging a Zoom caller who actually did make a good revenue enhancing and who identified a huge fiscal problem: downtown Fullerton, the annual sinkhole that makes millions for the scofflaw club owners and that leaves the taxpayers with a $1,500,000 bill. He suggested a special assessment on these eager party entrepreneurs to pay for the havoc their booze and their customers cause. Not surprisingly, none of the council members even mentioned the problem. They never do.
Downtown Fullerton saw a ribbon cutting this week for “Madero.” It’s not a new place. It used to called “Matador” but an El Matador already existed in Costa Mesa and the story goes that Mario Marovic, proprietor of the Fullerton place, got sued and had to change the name of his establishment. So an event was held and here’s the scene:
All smiles…
The guy with the green hat is Mario Marovic. That name sure rings a bell.
And who is the little guy on the left standing next to Marovic? Why it is none other than the District 5 Councilman Ahmad Zahra, dressed in his usual ribbon-cutting attire, palling around with Marovic and even giving him some sort of City proclamation!
Will not work for new clothes…
Now, we all know that little Ahmad is a notorious attention hound and desperate photo-op seeker. We also know that a City Council agreement isn’t worth the paper it’s written on. But this is really too much. Marovic is still squatting on public property and it looks like no one in City Hall has the balls to enforce an agreement signed by Marovic himself. Instead the City seems to be actively socializing with him.
It seems like every few years Fullerton City Councils are presented by the bureaucracy with a new “fiscal cliff”: It’s done slowly, tentatively, and then with an ever-increasing tone of persuasion, the argument for “revenue enhancement” unfolds.
Revenue enhancement means taxes or debt – one way or another. And so it is in 2024.
With time running out to put a tax increase on the November ballot, the urgency from “staff” is getting more direct. Time has run out for soft-sell concepts like phony push polls of unwitting citizens. At Tuesday’s council meeting our esteemed City Manager is presenting ideas for raising money.
Well, it might work…but, then again…
TOT Tax. What is a TOT tax? Transient Occupancy Tax is a tax levied on visitors who stay in Fullerton hotels. The staff report tells us that several million can be raised with a slight increase and that hopefully we will remain competitive because we are so close to the Anaheim “Resort.” No on can prove this one way or another, but it seems like becoming comparatively less competitive is a poor way of raising revenue. The positive thing about a TOT increase, says the staff report, is that Fullerton taxpayers won’t be affected (unless, of course the concept turns out to be a money loser).
Sales tax. We have already seen the sales pitch on how a general sales tax only needs 50%+1 to pass. We are told that a “1%” increase (from 7.75 to 8.75) on sales tax is being pursued by cities up and down California, etc, etc. Of course they think we’re too dumb to know that this isn’t a 1% increase, but a 13% increase. As with a TOT increase, it’s hard to see how becoming comparatively less competitive is going to make money. The sales tax issue seems DOA. 4 votes are needed to put this on the ballot and Whitaker and Dunlap aren’t going for that.
POBs. And then we see the concept of Pension Obligation Bonds, in which bond revenues are deposited with CalPERS to buy down the actuarial unfunded liability. The idea is that the interest rate on the bonds is lower than the return CalPERS will give us and the difference is all gravy. This idea was floated back in 2021 by then Interim City Manager, Jeff Collier. FFFF covered the proposal, here. One upside is that this scheme is not constrained by the usual debt ceiling limits placed on local governments by the state. Great. More gambling.
Well, there she goes. Don’t worry. There’s more where that came from…
Mr. Collier was kind enough to visit our humble site to educates us on POBs. Friends immediately pointed out the risks involved with POBs, and the lack of skin in the game Collier and his pals had. And that was three years ago when market interest rates were way lower. The equities market is now going through the roof so the idea looks appealing to our bureaucrats, but not to California pension system observers who note CalPERS ever-declining return assumptions and remember the disaster of 2008. Will the City Council approve this gambit? It’s possible, and a public vote is not required.
Hey, you down there…
These various options involve raising taxes or encumbering property to some extent. That’s risk with a speculated payoff. Ahmad Zahra is bound to support anything risky and foolish so as to protect his friends in City Hall. So is Shana Charles, another liberal torchbearer who will tell us this is for our own good; or for the urban forest; or for boutique hotels, or something else nonsensical. Whitaker won’t go for any of this nonsense. Dunlap? Who knows these days. And then there is Fred Jung who had the opportunity to be the third vote to shut down talk of revenue enhancement last year and didn’t.
Hero. Deserve.
A problem with any tax revenue increase is that the increase, such as it were, will immediately be snatched up by the so-called “public safety” employees, whose unions have the clout to grab what they want and everybody else be damned. That’s exactly what happened in Westminster a few years when the cop union pounded the pavement for a sales tax increase, got it, then gobbled it all up. And Westminster is right back where they were before.
About a week and a half ago FFFF linked to a story in the venerable Orange Juice Blog, documenting how our Fullerton D5 Councilmember, Ahmad Zahra, a visiting tourist from Syria, headed to Little Rock, Arkansas and got married to a woman.
Those facts alone would be enough to warrant a sideways glance toward a man who says he gave up a career as medical doctor to live in his car in Hollywood while pursuing his dream: a film-making career.
Zahra’s narrative quagmire gets stickier because of his own origin tale in which (according to his own bio) he always knew he was gay.
So why would a gay man, aware of his gayness, marry an Arkansas woman whom he says he “liked?”
The obvious answer, bolstered by subsequent events, is that our young visitor was looking for a foothold for permanent residency in the United States.
In case you think getting this marriage to do the residency trick might be a real hurdle, a frightful bureaucratic undertaking, a rigorous examination conferring validity, consider the following tale told by a young woman named “Amanda” to the Arkansas Traveler about her Arkansan marital experience with a Middle Eastern immigrant. After their marriage, the immigrant needed to get his status as a permanent resident established:
The couple sits in front of a USCIS (US Citizenship and Immigration Service) agent and answers a series of intimate questions.
“I heard horror stories about the interviews where people are dragged away from each other,” Amanda said. The penalty for getting caught is five years in prison with a $10,000 fine for the American and permanent deportation for the foreigner.
“I had never been so scared before in my life,” Amanda said. They sat there in a large pale waiting room surrounded by other couples with a pile of paperwork and photo albums on her lap – their entire marriage legitimized.
But instead of the expected – “What are his favorite colored socks? What kind of toothpaste does he use?” – their interview took only five minutes. “OK, you’re both Jewish, good. Are these your names? Good. Your address? OK, thanks.”
An alert Friend sent in this screenshot of a website in which Fullerton City Councilman and erstwhile film maker Ahmad Zahra presents his (partial) biography. This was just yesterday.
Just the other day the Orange Juice Blog broke the tale of immigrant Zahra’s marriage to a female in Arkansas – a rather embarrassing fact omitted from his previous self-discovery narrative.
I wonder if Ahmad is combing through his past representations to see what, if anything needs re-arranging.
On this week’s Fullerton City Council agenda I caught a glimpse of the upcoming May 21st agenda forecast:
AGENDA FORECAST (Tentative) Tuesday, May 21, 2024
APRIL 2024 CHECK REGISTER
MONTHLY COMMITTEE ACTIVITY AND ATTENDANCE REPORT
DISPOSITION AND DEVELOPMENT AMENDMENT FRONTIER
COSTA COURT AREA STREET REHABILITATION PROJECT
ALL CITY MANAGEMENT SERVICES CONTRACT
SENATE BILL 1383 COMPLIANCE ACTION PLAN FOR SERVICES AND PROGRAMS
CHAPMAN PARKING LEASE
FOX BLOCK
REVENUE OPTIONS
Not all that interesting until you get to the bottom.
Yeah, it was ugly as sin, but there sure was a lot of it…
The Fox Block, a never ending saga and a classic example of a tail wagging a dog. For years the “rehabilitation” of the historic Fox Theater structure has been used to support all sorts of God-awful lunacy, including residential land acquisition and demolition, new grotesque clown architecture, and the six million dollar relocation of the McDonalds restaurant a couple hundred feet to the east. The “Fox Block,” as the boondoggle came to be known, is a living fossil of the bad old Redevelopment days, when any nonsense could be got away with by City staff playing with Monopoly money. Damn accountability. It’s the Fox Block!
Why this is on the agenda is as yet unknow, but I noticed that one of our Friends “Fullerton Historian” suggested it may have to do with extending a development agreement or some other similar concept. Then I saw the third bullet point above: Disposition and Development Amendment with Frontier. “Frontier?” That’s all? What is this? Frontier Real Estate is our “partner” on the Fox Block, meaning we’re probably taking the risk and they’re goon get any reward – if there is any.
M. Eric Levitt. Will he save us from ourselves?
And finally we see an item simply called “Revenue Option” an oatmealy sort of phrase, but one that FFFF has already discussed. At this meeting the City Manager, Eric Levitt, will try (without too much unseemly enthusiasm) to tie dangling threads heretofore described here: a push poll created to drum up support for enhanced public services; a review of the likelihood that general sales tax might pass at 50%; and a precipitous budgetary cliff looming ahead.
See where this is going? Let’s see who stands up and demands that for our own good we must have a tax increase.
The other day FFFF related a story told on the Orange Juice Blog about Fullerton City Councilman Ahmad Zahra having been married to a woman in Arkansas in the late 1990s. It’s always been a blank time in Zahra’s otherwise detailed autobiographies.
The problem is that Zahra has been very clear about being a gay man and “always” knowing it. The unambiguous statements asserting his self-awareness are published in interviews. So how and why did he come to marry a woman?
From beautiful Pulaski County
According to the OJB story, Zahra tells of his arriving in the United States (no mention of what sort of visa he held); and, not knowing a blessed soul, heading to Little Rock, Arkansas where he claims a friend of his father lived. There, says Zahra, he met a woman whom he says he “liked” and who liked him in return. This tepid romance led to a marriage, dissolved a few years later after Zahra had made his way to Los Angeles to learn the movie trade.
The story is so outlandish that it stretches credulity far past the snapping point. The OJB forewent an opportunity to delve farther into the strange tale, but the obvious difficulties emerge with startling clarity.
An immigrant to the United States of America shows up for some reason, not knowing anybody. Is he a tourist? Maybe. But if so he decides to go to Arkansas, of all places – not exactly a well-know tourist destination. Well, there he is in Little Rock. Where does he live? How does he get by? He can’t get a job, at least not legally, so he must have a little something stored up for a rainy day Stateside.
Michelle Salmon
Enter Michelle Salmon, stage right. Somehow our eager young visitor crosses paths with Ms. Salmon. How and where they meet is at the heart of this mystery and is open to some interesting conjecture. Inexplicably the relationship leads to matrimony at the Pulaski County Courthouse where a marriage license is obtained.
Michelle has hooked herself quite a prize catch: a 27 year-old foreigner with no job (legal anyway), no job prospects, and, according to Zahra himself, completely aware of his homosexuality. On the surface he seems like pretty poor husband material for an Arkansas gal, so we have to wonder if poor Michelle was either mentally challenged or perhaps in need of financial assistance.
Zahra makes no mention of his visa status in his story to the OJB, but we have to assume that he received either a work visa or permanent residency status because not long after his connubial union he goes to LA, bravely living in a car on the streets of Hollywood (so he says). His visa would have been helped along by a marriage certificate to a citizen and it’s safe to say he got one that permitted him to stay in the US.
Well, says Zahra cavalierly, the marriage thing didn’t “work out,” what with the husband living in a car in Southern California, and with Michelle deciding to remain in Arkansas “with her family.” Divorce ensued and Ahmad’s new life journey had begun. He became a citizen in the course of time, a fact he shares as if this simple fact absolves him of any impropriety in the acquisition thereof.
Here’s what happened…
Naturally, Zahra tried to paint this ludicrous picture to the OJB as his “coming out” portrait, and invited homophobic and Islamophobic FFFF to “make fun” of the narrative. The old dodge. Homophobia. Islamophobia. Be a victim.
I’m not the least bit interested in making fun of anything relating to Zahra’s gay coming out story – whichever variation he is selling at any given time; except when the story is cooked up to obfuscate what looks like a serious and likely problematic question. To wit: did Ahmad Zahra commit Marriage Fraud to expedite the legal requirements for him to stay in this country?
