Dear Friends, back by popular demand, The Revenge of Dick Jones:
It takes a lot to keep the eight full time redevelopment staffers busy. With the economy tanking, widespread commercial vacancies and developer money drying up, the wheeling and dealing–at taxpayer expense–is a thing of the past!
Falling property values mean tax increment revenues are slowing to a trickle. Even the bond market is looking murky for RDAs.
So what’s a bored staff with a lot of time on its hands to do? With the only recent feather in their cap (a black eye) really is the $6 million McDonald’s move (150 feet west, right across from Fullerton H.S.) They need more self-justification.
Hence, the 18-month effort to expand the Fullerton Redevelopment Area by 25%, All the hearings, studies, consultant reports and pricey legal advice could keep any self-respecting bureaucrat busy in justifying their jobs. Never mind that the proposed new area does not meet the barest minimum legal justification for blight. Never mind that the County of Orange has found the legal backbone to oppose the $20-30 million in theft from its general fund.
Never mind that none of the hundreds of businesses affected have requested any redevelopment subsidies, nor the use of eminent domain to purloin property from their neighbors. Never mind that the state is moving to recapture lost redevelopment money.
Turf protection and self-preservation is the first law of any government agency or bureaucracy. The redevelopment staff has a tough charade to maintain. They must pretend that thy are curing blight while at the same time trying to prove that blight in Fullerton is actually growing.
Why did the City Council vote to extinguish several office buildings, all which contributed to Fullerton’s business zone and stock of professional offices, as well as our historic built environment? Besides a crappy deceitful plan called Jefferson Commons for more student housing on a private college campus, the city lost a huge asset, one that helped create the historic character of East Fullerton for the past 50 years. Shame on them!
Correction to this post: I have been informed that the project cannot legally be exclusively for students, despite the council repeatedly calling it “student housing”. It is a private development, and they cannot discriminate against non-students who want to rent there.
June 16, 2009……..Fullerton City Council Agenda
CLOSED SESSION
Item 1. CONFERENCE WITH REAL PROPERTY NEGOTIATOR – Per Government Code
Section 54956.8
Property: North and South Block of 100 West Amerige Avenue,
Fullerton, CA
Agency Negotiator: Rob Zur Schmiede, Director of Redevelopment and
Economic Development
Negotiating Parties: Richard Hamm, Pelican-Laing Fullerton, LLC
Under Negotiations: Price and terms
The Laing of the LLC is John Laing Holmes. Laing is a home builder with a reported debt of $500 million to $1 billion and is in Chapter 11 receivership. And furthermore, the word on the street is the front men of the LLC Hamm & Pellican are also on the verge of financial protection.
Exactly what kind of negotiations could our financially unexperienced City Council be doing with a group of financial wizards who are running amok in debt? When is the Redevelopment Agency going to realize the housing market has collapsed? If this project goes forward it will be a financial wreck for Fullerton.
Dear Friends, how many of you realize Pam Keller, Sharon Quirk, Don Bankhead and Dick Jones have already voted to place the Fullerton tax payers on the hook by guaranteeing the developer who’s in bankruptcy a 15% profit? Who besides us are willing to admit this project was a turkey from day 1?
The City bought two “Go Titans” banners and posted them on the railroad overpass above Harbor Blvd. Great! We’re all for the Titans. Titan fans glory in our four College World Series championships. Some recall the 1978 basketball season when we were one point away from making the Final Four, and our 1984 football season when we were ranked in Sports Illustrated’s Top 25 for much of the season, with a final record of 11-1. Banners do liven up a city, inform the public and boost community spirit.
So, why the kill-joy sign still posted at Malvern & Euclid, on the flood control channel fence? 
Like a scolding nanny, it reads “Do Not Post Banners On Fence.” This has long been a convenient and inexpensive way for youth sports, churches and community groups to advertise their sign-ups and activities. It is hypocritical for the city to post a banner above Harbor, but ban signs at Euclid. If the Titans want to maintain baseball supremacy, the prospective Little League dad must know how to sign up his junior slugger—and for decades moms & dads read the banners at Euclid & Malvern for just such updated info.
Safety concerns must be weighed, but a loose banner above Harbor will fall onto oncoming traffic. A loose banner at Euclid & Malvern will fall onto the sidewalk—or into the urban runoff in the channel. At Euclid & Malvern, the fences are low enough so the banners aren’t blocking anyone’s and since their on the south side of the street, motorists don’t even need to look their direction to check cross-traffic.
We’re all for a Titan banner on Harbor. But we’re also for the Little League and all manner of other banners on Euclid. That scolding warning sign is deterring community groups from getting their message out. You can bet it won’t deter politicians from their bi-annual blossoming of yard signs.
After a month of speculation, Councilman Dick Jones did reappear as Fullerton’s representative at the Orange County Vector Control District meeting held yesterday (to the uninformed—vectors are mosquitoes, fire ants, killer bees, rats, flies and other living things that really bug people).
At the May meeting, other city rep’s were abuzz at Jones’ Texas-twanged tirade that interrupted a staff presentation on property assessments. Bored, angered and irritated at all the background info he was getting, he suddenly cried out—“ENOUGH, ENOUGH, FOR GOD’S SAKE!” 
Jones nearly went off again, reported on-the-scene witnesses. After the Staff presented its recommendation on the assessments, Laguna Niguel Mayor Robert Ming presented an alternate motion, and passed out a written copy to the Board. This flustered Jones, who is used to the well-scripted staff motions of the Fullerton City Council. To Mayor Ming, he sarcastically yelled out “OH—YOU MEAN WE HAVE TO READ IT NOW?”.
There was tension in the room, as Board Members feared another meltdown. Ming calmed the threatening waters when he replied “Well, yes, it’s only one paragraph long”. The motion set higher standards of accountability than did the staff recommendation.
Whether Jones read the motion or not, we’ll never know. He didn’t vote for it, as did only 8 of the 31 Board Members (including Ming, Moorlach and Buena Parks Jim Dow). In a second vote, the staff recommendation was approved. People in Orange County politics must believe that Fullerton is a joke of a city with this kind of representation.
Today, all eyes—and ears—will be on Fullerton’s representative at the OC Vector Control Board meeting that will take place in Garden Grove. There are three scenarios as to what might happen. Here they are, from best to worst:
Best: The City Council appoints a new Vector Control representative who will take the job seriously.
So-so: No one will show up representing Fullerton, leaving us without a voice.
Worst: Councilman Dick Jones will take his seat on the Vector Board and continue to embarrass the city with his Texas-twanged outbursts.
Stay tuned!
You may have trouble sorting through the man’s mangled syntax so we are providing a transcript of his remarks:
“I would like to compliment you all on the extensive report you gave, however when I get on an airplane I’d like to think that some agency says it’s air worthy, I don’t want to know the percentage of the materials that make up the wing spars, your intentions are laudible and so forth. I think this was over done, when people come to me for an operation I did not give them 4 years of surgical information during my residency, this was excellent. It’s nice to be baffled by brilliance, and it was baffling”.
Do not enter into negotiations with the Fullerton Redevelopment Agency to move your McDonald’s restaurant 150 feet west to the Chapman / Pomona corner. Stay put.
There are many reasons for you to stay where you are. You some of them you know better than we do. But we have some political insights that might be helpful.
- To force you to move against your will, the agency must use eminent domain, which requires a 4/5ths vote. With Nelson and Jones already having voted against the move, the votes for eminent domain aren’t there.
- Besides, there’s every indication that Sharon Quirk will change her vote. That would make it 3-2 against granting $6 million for the move.
- The reconfiguration of your restaurant will hurt business, confusing regular customers who will have to access your drive-in window from Pomona Avenue.
- The agency will confine you into a “new-to-look-old” building that will look nothing like a traditional McDonald’s. Many of your patrons will not be able to recognize you.
- McDonalds’ trademark signs and golden arches will not be allowed in the new building provided by the agency, confusing and discouraging regular patrons.
- You have been, are and will be criticized for accepting $6 million in public money. We know you don’t want to move, but if you accept it, the public will see it as corporate welfare.
- The move will likely result in down time, costing you money and customers.
- When there are cost overruns (inevitable in public projects) the Agency may be slow to reimburse you for your costs. Those costs may be disputed.
This move is completely unnecessary for you from a business standpoint. You’d said during the hearing that long ago then-Redevelopment employee Terry Galvin told you the city wanted you to move. Galvin didn’t speak for the council then and he certainly doesn’t now.
Terry Galvin has retired. There is a whole new council majority. Nothing obligates you to go along with this deal.
And, there are not the 4 votes needed for eminent domain. You cannot be forced to move. Stay Put!
In response to County Counsel’s objections to the original blight findings, the staff report asserts that “these parcels if developed will need to be assembled with adjacent properties to create a sufficient development parcel. Because these parcels are in multiple ownerships it becomes more difficult to assemble into a desired development site.”
My brother and I assembled 27 irregular shaped parcels along Truslow & Walnut Ave. without any RDA assistance. No subsidy, no eminent domain. The result is the Soco Walk transit-oriented condo complex.
Many subsidized in-fill projects made possible by eminent domain are failures, because they respond to government hand-outs rather than market realities. Up and down California there exist many Ghost Malls (Triangle Square / Costa Mesa, Carousel Mall / San Bernardino) built on the backs of dispossessed property owners and fleeced taxpayers.
Let’s not suffer the fate of Santa Ana’s “Renaissance Plan” with numerous agency-owned vacant lots (where home and businesses once stood) have festered for years of bureaucratic inertia. There are many other such examples.
Redevelopment staffs abhor small business districts with multiple ownerships, because they cannot control them.
They tarnish them with the blight label and threaten them with eminent domain to benefit some politically-connected developer who makes a killing before selling out and moving on.
Who thinks that government officials can do a better job of redeveloping areas than private individuals using their own money and taking their own risks? Bottom line: Do you trust the free market or city staff to make crucial development decisions for Fullertons future?
There are 154 small businesses along West Commonwealth in the 2 1/2 miles stretching from Euclid to Dale. Many are run by entrepreneurs who own their own property. This variety of small business owners is why City Staff is declaring it blighted in their attempt to hoodwink the council into including it into a new redevelopment area.
In response to County Counsel’s objections to the original blight findings, the staff report asserts that “these parcels if developed will need to be assembled with adjacent properties to create a sufficient development parcel. Because these parcels are in multiple ownerships it becomes more difficult the parcels into a desired development site.”
Huh?
These parcels already ARE developed into a variety of small businesses, ranging from coffee shops to body shops, from florists to machinists, from preschools to flight schools. Staff sees this as blight. The new RDA seeks to “assemble” (under threat of eminent domain) these parcels, clear out the small businesses to “create a sufficient development parcel” under one ownership. And that’s not good for Fullerton.
One Commonwealth business owner (Aeromark) has already opted out, fearing consolidation of his small parcel. Other owners, beware!
No, West Commonwealth is not Irvine. Some planners may dislike the very variety that makes it interesting. But there is an edgy realism there, of small hardworking people actually producing goods and services for their customers–not because of some government mandate. The report goes on to say “development proposals are not financially feasible because acquisition costs have increased over the years rendering in-fill projects to be infeasible in many cases without redevelopment assistance.”
Let Commonwealth be Commonwealth!