Sweet Elijah Gets Nasty. And He’s Still Wrong

Our new friend, sweet young Elijah Manassero, has written a letter to selected Fullerton City Councilmembers and FFFF got a copy. This communication is very is ignorant and confrontational; and if the writer thinks it is going to persuade through reason or threat, he’s sadly mistaken.

The topic is the Bushala lease revision at the Santa Fe Depot that would be expanded to include the abandonned loading dock area. Here’s what tender, innocent Elijah had to say to Councilman Nick Dunlap:

Dear City Council,

I’m writing to express deep concern about the lease agreement approved for Mr. Tony Bushala. The terms are lopsided, irresponsible, and betray the values you claim to uphold: fiscal responsibility, transparency, and local control.

Worse, they come in the context of political donations from the very party benefitting. This is a breach of public trust.

⸻

Councilmember Dunlap,
With your background in commercial real estate, you know how bad this deal is.

Section 10 of the agreement allows Bushala to assign or sublease the lease to any entity controlled by George, Tony, or Salma Bushala, including shell companies. This eliminates oversight, obstructs transparency, and gives one political donor unchecked long-term control over public property.

Even more troubling: the lease includes rent credits that discount the already-low rent by up to 75%. That means Bushala can pay pennies on the dollar and then turn around and sublease to a third party at market rate, pocketing the profit with little obligation to improve the property. The City receives nothing from this resale.

You know this isn’t standard in municipal leases. Cities typically reserve the right to renegotiate when property is flipped for private gain. That clause is missing. The power to cancel a lease or require public bidding? Gone. That’s not fiscal responsibility. It’s a giveaway.

This lease is also next to the development, The Tracks at Fullerton Station, which makes the low rent and numerous benefits even more egregious. Mr. Bushala can lock-in a low payment now, before major development takes place which will raise the value of the surrounding area.

You say you believe in local control. But locking the public out of a city-owned property next to a major transit hub until 2060, while giving control to a donor network, is the opposite of local control. It’s donor control.

Ah, poor, sweet boy. Completely uninformed; and he doesn’t let ignorance interfere with the enthusiastic gush of opinion. Elijah wants to come across as knowledgeable and yet shows his political motivations at every misstatement. He’s obviously Ahamad Zahra’s latest toy, and he shows it.

It’s a bad deal because Elijah was told it was.

1. The term “shell company” nonsense is rolled out for sensational and perjorative effect. Really the object here is to secure and expedite future assignment rights for the leasee, acceptable to the landlord, too. There is nothing illicit or objectionabl about this; it’s not uncommon.
2. Excitable young Elijah’s next objection (he’s even more troubled!) is a “rent credit” of 75% – lowering the rent even more. Poor, sad Elijah. He’s referring to the construction rent credit that offsets rent by applying the contruction cost to rent over a long time. But the poor boy misunsterdands (or pretends to). The 75% figure refers to the qualifying amout of the credit – 75% of the construction cost – agreed to by the City. Construction rent credits are not rare, in fact they are used all the time, althought young Manassero doesn’t know anything about it. At the end of the lease the owner gets a built facility, in this case commercial/retail space in the otherwise useless loading dock. And, by the way, how does this impressionable sprout know what’s “standard” in any sort of lease?
3. Newly blossomed Elijah seems to think that something is being “flipped” and a “resale” is going on. Oh, well, how can you even respond to nonsense like that?
4. Finally! The young bud mentions “The Tracks at Fullerton Station” a project that will make the Bushala’s “low rent” even more “irresponsible”egregious.” How, Elijah doesn’t say. And he doesn’t mention that “The Track” developers are convicted conmen, have missed all of their required milestones, and are embroiled in a lawsuit with the heirs and assigns of the original mastermind, Craig Hostert. And Elijah isn’t done omitting facts, probably because Zahra never told the eager youngster: “The Tracks” (that Zahra voted for) amounted to a fantastic giveaway, entitling property that increased in value geometrically and was concurrently sold (by Zahra, again) for 6 cents on the dollar: a real giveaway. Naturally, the land involved was never offered to the public in the form of a developers RFQ. Finally, if “The Tracks” ever happens I’ll fly with callow Elijah to the moon on gossamer wings.
5. Our puerile interlocutor wraps up by asserting that the lease will somehow “lock out” the public from a city-owned property. I have no idea what this means. We could guess what Elijah means, or what he thinks he means, but really, why bother?

Nick Dunlap is involved in commercial real estate. As such he knows that the Santa Fe Depot space is highly unique and not in the way typical real estate types use the phrase. The three parts, not counting the loading dock, are comparatively small, noncontiguous areas that are hard to lease; the Bushala’s are also responsible for a share of the maintenance that would otherwise be paid for by the public. The Loading Dock is of no use to anybody but the Bushalas: there is no access to the dock except through their existing leasehold. In other words the rents here are not comparable to other properties downtown and certainly not to any other city leases. Dunlap surely knows all this, even if sweet, young Elijah and the Kennedy Sisters and Zahra don’t.

The public’s trust is not being “breached” as asserted in young Elijah’s attempt to make his rhetoric take flight. It’s actually being tended to in a way that will generate sales and property taxes to the city and to the county.