Bungling Boutique Boondoggle Blunders

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.

What’s Wrong With This Picture?

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.

Right. He’s the scofflaw who got caught squatting on the City’s property on Commonwealth Avenue – the legacy of the Tony Florentine sidewalk theft. When that came out Marovic made a deal with the City to remove the egregious “bump-out” and to be complete by July 2023. Oops. Nothing has even started, 14 months after the start of work deadline. And we know that the City Council has been presented with some sort of legal claim by Marovic, because it was on their Closed Session agenda.

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.

Revenue Enhancement

M. Eric Levitt. Will he save us from ourselves?

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.

How Hard is it to get a Green Card in Arkansas?

Zahra-Busted
Time to come clean…..

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.”

Five minutes. Rubber stamp.

Getting His Stories Straight?

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.

Surprise: High School District Wants More of Your Money

Just in case you thought the City of Fullerton was the only government agency that wants to put their hand in your pocket, you can think again. Back on April 9th the Fullerton Joint Union High School District held another one of those ridiculous “workshops” where the only work going on is push polling designed to get the school board to put yet another school bond on the ballot.

This item was agendized under the harmless sounding title of Facilities Master Plan Update.

This was none other than an opportunity for the school district’s army of six-figure educrats to sing the blues about how they need hundreds upon hundreds of millions of new property taxes to bring the wonders of technology to the districts underserved teenagers.

Just as the City did, the high school district employed the kindly offices of a consultant, True North, to do a poll. And guess what? The consultant (who specializes in managing technology upgrade projects) informed the Board that indeed, yes, their survey of 695 individuals indicated support for a bond, perhaps not realizing that district property owners are still in the process of paying off two previous facilities bonds and will be doing so for another twenty years.

Well, there it is. As with Fullerton, the District will need to adopt a resolution pretty quickly to get this bond on the November 2024 ballot. These things usually are timed with annual budgets although assuming a victory at the polls remains iffy, indeed.

In March of 2020 the FJUHSD’s Measure K – a deceitful operation from A to Z – went down to defeat. So did the Fullerton Elementary School District bond attempt, Measure J, on the same day. Will the FSD try another bond double-header like they did last time?

Stay tuned Friends and let’s see what happens in June. And like last time we’ll be reporting on the Bond Sales Industrial Complex to see who’s funding such an attempt.

The Fiscal Cliff

The Fullerton City Council is holding a special meeting tonight – a 2024-25 Budget “workshop.” No work will get done but there will be shopping going on as staff begins its formal press to raise a sales tax.

There is a lot of self-serving verbiage about how well our City staff has performed its tasks up ’til now, but then the hard reality hits because budget numbers can’t pat themselves on the back.

There are some harrowing numbers in the proposed budget – including a $9,400,000 draw-down from strategic reserves. This means of course, that the budget is no where near balanced as City Hall apologists like Jennifer Fitzgerald and Jan Flory claimed when they ran the place into the red almost every year.

M. Eric Levitt. Will he save us from ourselves?

Let’s let our City Manager, Eric Levitt tell the tale:

Financial Stability. The City has been able to over the last two years (for the first time in recent history of the City) to reach and maintain a 17% contingency reserve level. This budget maintains that reserve level; however due to an operating deficit, we will be utilizing one-time excess reserves this year and coming close to that 17% level in FY 2024-25 and below that in years beyond next year

Read. Weep.

The overall picture gets even worse as the levels of reserves slowly dwindle away. After this year Fullerton continues to be upside from $7.5 to $8.8 million each year until the end of the dismal decade. We are not favored with the running reserve funds balances.

Infrastructure is supposedly a big deal. Which reminds me of a quotation attributed to Mark Twain: Everybody talks about the weather but nobody does anything about it. But this year we are told, we can push get going on our deteriorating infrastructure along by borrowing! Once again let’s heed the words of Mr. Levitt:

I have also put together a strategy to increase that funding level to closer to $14 million over the next four years through the use of financing. However, there are both upsides and downsides to this approach which will be discussed with you in more detail at today’s presentation.

Now this should be a red flag: borrowing to perform maintenance, a basic accounting no-no. And what form will the borrowing take? Not a municipal bond, you can be sure, It would likely be by selling certificates of participation or some other dodge to avoid municipal debt restrictions. Here’s the table that shows our Maintenance of Effort (MOE) shortfall without financing.

Now we all know that interest payments are made by somebody, somewhere, and that somebody is you and me. We get to pay the interest on debt incurred by years of municipal mismanagement by people like Joe Felz and Ken Domer and Jeff Collier who get to sail off to a glorious and massively pensioned retirement at 55 years of age.

And finally, to circle back to the story lead, here’s a distasteful nugget carefully slipped into the City Manager’s report:

“Staff recommends City Council review options over the next year to stabilize the budget and ensure the City remains financially sound.

Jesus H. There it is. Not quite explicitly stated, but we know very well where this is going. Another general sales tax effort, just like the ill-fated Measure S of four years ago. The seeds for this have already been planted, of course, in a nasty little taxpayer-funded fishing expedition in the guise of a community survey. Last November I regaled the Friends with this slimy maneuver, here.

How did things get so bad?

By the way, this is exactly the same process City Hall rolled out four years ago. And we will be told By Ahmad Zahra, Shana Charles and Vivian Jaramillo that if we don’t pony up we will be morally deficient.

Well, good luck Friends. This is going to be a long year and you can bet the farm that we will be asked to pick up the check – again.

Friday Photo Fun

Every now and then I look down from doggy heaven and see something entertaining. Then I ask you humans to come up with a caption for the image. Here’s an picture that just cries out for a caption. Your councilman Ahmad Zahra, beloved by my former mistress, Jan Flory, and others of her ilk. My canine instinct senses something is off-putting about this man, but, arf. I’m only a dog, and a dead one at that.

Please give it a whirl. I am informed the best effort will receive special FFFF recognition.

Jaramillo High on Retail Pot

Green means green. One way or another…

You heard right, Friends. Very high.

Wanna ganj?

Earlier today, one of our Friends shared a couple Vivian “Kitty” Jaramillo posts from the Next Door site sharing her views on the subject of marijuana tax revenue. Jaramillo says she’s running for the Fullerton City Council, and has big plans for solving the budget problem.

I don’t know when the lightbulb will go on for our current council majority that our city is dying. We have been pinching penny’s for much too long and our city’s infrastructure shows it. If they would put on their thinking caps and allow legal dispensaries they could be the super heroes of Fullerton. Vote only candidates in favor of legalizing

Responding to something called Legalize Fullerton Dispensaries, Jaramillo shared:

Thank you for your continued interest in legalizing marijuana dispensaries in Fullerton. Unfortunately we still have the same 3 councilman, Whitaker, Jung & Dunlap, who voted against this issue. So let’s be sure when any of these 3 are up for re-election to show up and vote them OUT! Our city is losing millions of dollars each year that dispensaries are not allowed. We all know how desperate we are for a stronger budget……

I can’t guarantee that these are genuine comments made by Jaramillo, but when you consider the poor grammar and punctuation, they have the ring of genuineness. And of course, Jaramillo’s world view, “pinching penny’s” (sic) is the problem, not excessive pay and pensions to thousands of employees over the years.

Her stake-out makes sense if she she believes the Long Beach Cannabis Cartel can be a source of political fundraising; and, of course her political soulmate, Ahmad Zahra, has long been known a wannabe player in the legal dope store game. Zahra supported the proposed ordinance that could have resulted in legalized dispensaries within 100 of your house. Zahra has also been associated with the “consulting” work of one Melahat Rafiei who recently pleaded guilty for conning a would-be dispensary operator in Anaheim out of hundreds of thousands that were meant as payouts to officials, and to trying to bribe Irvine City Council members.

Now, it could be that Jaramillo really believes that dispensaries are an economic salvation for Fullerton, and the more the better, and any negative impacts are worth the price of happy public employees and timely CalPERS payments This may put her at odds with the Fullerton Police Department that has a long-standing opposition to this sort of thing; she must be counting on the cop union to paver her way to office.

A Tale of Two Trails

A Friend has alerted us that the on-line version of the Fullerton Observer posted a story by somebody named “Emerson Little” about a little known Fullerton trail called the Lucy Van Der Hoff Trail. The title? “Lucy Van Der Hoff Trail Needs Maintenance.” It seems that almost nobody knows about this .9 mile “asset” even though it is City-owned.

Unfortunately, the “trail” is overgrown, full of trash, and is yet another shining example of neglect by our top-notch Parks Department. Fortunately, the intrepid Emerson took the trail and generously provided images. But let’s let Emerson tell it in his own words: .

“It’s maintained by the Fullerton Parks and Recreation Department and is listed on the city’s website as a connector. However, when I walked on the trail, it was rather overgrown and poorly maintained. In certain spots, there were quite a few lost objects and pieces of garbage, possibly swept down the pathway by rainwater.”

Put on your walking shoes…

So, the City has completely failed at maintaining the Lucy Van Der Hoff Trail – even as a simple mountain bike trail. They seem actually have completely ignored it – a facility that should cost almost nothing to maintain. It’s alleged “connector” value is almost useless.

It’s the thought that counts…

More from Emerson: “I stepped around some discarded plastic bags, bottles, pillows that were torn open, unidentifiable articles of clothing, pieces of broken wood, old soccer nets, and cans, making my way forward.” When the overgrown vegetation became too thick our brave explorer had to ditch the “trail.”

Finally, here’s Emerson wrapping up the tale of his Big Adventure: “So, while my hike was interesting, I really wouldn’t recommend taking the Lucy Van Der Hoff trail.”

And now, Friends, here’s an observation that seems to have escaped the keen notice of the Observers. The advocates of the infamous Trail to Nowhere on the old Union Pacific right-of-way tacitly believe (or pretend to believe) it is going to be maintained – 170 trees, hundreds of shrubs, water lines, irrigation systems, benches, paths, signage, light fixtures – and let’s not forget graffiti removal, etc. – even though there is no budget to do this, and the money can’t be looted from the Park Dwelling Fund which can’t be used for maintenance.

We’ve already seen the maintenance fiasco of UP Trail Phase I – the plant denuded, trash filled, urine soaked predecessor of Phase II that nobody in City Hall has given a rat’s ass about. And Fullerton is also facing a fiscal cliff thanks to years of budgetary mismanagement.

Several months ago FFFF received a comment from former City Manager Chris Meyers, warning about the foolishness of building something that doesn’t have a plan for maintenance cost. But Ward 5 Councilman Ahmad Zahra believes even talking about maintenance issues south of the tracks is “offensive,” the idea being that it’s great to give the “underserved” barrio “something nice,” but who cares what happens to it later. It’s like giving somebody a car when they can’t afford to buy gas, or insurance, or keep it running. Looks like Zahra’s colleagues all agree – even though the very same people can’t figure out how to open Union Pacific Park – another embarrassing disaster.