Tuesday’s TEFRA Tank

The scheme to rubber stamp a deal that would have cost the City and local agencies a million bucks a year in property tax revnue was voted down 3-2 last night.

On Sunday I shared the news of the agenda item returning to the council after being continued in June. Let me reiterate.

TEFRA stands for Tax Equity and Fiscal Responsibility Act, and authorization permits a little-known statewide housing agency to issue bonds that will provide $180,000,000 for an unknown non-profit entity to buy and remodel two huge apartment complexes over by Cal State Fullerton. The projects will subsequently be restricted to low and medium income renters.

Of course the kickers were that the projects were going to be eventually removed from the property tax rolls by the County Assessor and that the 395 now-restricted units would not even count toward the 13,000 new unit quota demanded by the State of California based on numbers cooked up in their social engineering lab by SCAG – the Southern California Associations of Governments.

Economic Development is my specialty…

The whole thing was obviously being presented by a completely biased staff led by the ever-egregious Sunaya Thomas. All you had to do was pick up on the tenor of the staff report.

Well, naturally the two socialists on the council were big supporters, as predicted. It was all about subsidizing the so-called “missing middle” a comparatively new term concocted by sociologists to identify a new group of underserved (subsidized) people like teachers and nurses and Shana Charles’ pals, the impoverished Associate Professors at CSUF. Charles bemoaned the latter’s rough life in the slums and tent cities. Okay, I made that up but you get the picture.

The lack of logic from Charles – and her fellow traveler the Dodgy Doctor from Damascus, Ahmad Zahra – peddled crap so illogical I would be remiss if I didn’t share it.

Still 13,000 units to go!

Charles claimed that this plan would remove existing overcrowding in the existing apartments. She didn’t say how; presumably locked in lower rents would mean less crowding as fewer residents were needed to make the monthly nut. Huh? What would keep future tenants from from reducing whatever the cost is by jamming into apartment units? She didn’t think about the outcome of her assertion: if the crowding were lessened, where the hell would those people go? The street? Her position was that the already badly bungled could suck up the property tax loss.

The Man Who Was Never Mayor…

“Dr.” Zahra made an even stupider claim: that these subsidized public housing projects would boost the sales taxes, the local economy and hence the city budget! What the everlasting fuck? Did this idiot want us to believe that none of the current residents in the “market rate” apartments contribute to the Fullerton economy?

A very-much awake Chris Norby in a contemplative mood…

Fortunately, wiser heads chimed in. Earlier, former Councilman Chris Norby showed up to lay it out to the Council. The projects will provide no property tax but demand all of the usual services, plus more; and that the so-called “preservation” of units described by staff was nonsense. But of course the tender young Marxist Elijah Manassero was there to promote government subsidized housing, possibly hoping to move out of his dad’s house someday.

Nobody bothered to ask if these complexes were already effectively affordable, and were already being used by folks who work and go shopping in the area. Staff didn’t say, another indicator of the lack of professional objectivity from our under-compensated employees.

Commonsense prevailed…

Nick Dunlap, to his credit, demonstrated the appropriate annoyance at the nonsense, skewering the weepy idiocy presented by Zahra and Charles. He immediately moved a substitute motion to can the idea right after a motion to approve was made by Zahra and Charles. It was seconded by Jamie Valencia, and the in the vote, Mayor Fred Jung provided the deciding vote to pull the plug.

I would hope that this is the last time we’ll see this sort of thing, but the old adage “it’s never over ’till staff says it is” is always a Fullerton factor.

TEFRA Time. A Lose-Lose for Fullerton

On Tuesday’s jam-packed agenda (more on that later) one item stands out: consideration of approving TEFRA bonds. It’s been continued from the June 16th meeting.

TEFRA stands for Tax Equity and Fiscal Responsibility Act, and authorization permits a little-known statewide housing agency to issue bonds that will provide $180,000,000 for an unknown non-profit entity to buy and remodel two huge apartment complexes over by Cal State Fullerton. The projects will subsequently be partially restricted to low and medium income renters.

The staff report goes to great pains to explain that the City is in no way responsible for the debt incurred; see, it’s more of a procedural formality that the municipality puts its stamp of approval on the debt issuance.

Anyhow, questions were asked by the Council in June about the impact to property tax revenue, and as usual that inquiry was met with blather:

Since the County Assessor is the guy who grants tax-exempt status on 501(c) “affordable housing” the City itself has no part in that, and so staff explains that this action, per se, won’t lower tax revenue. But that’s a distinction without a difference, for clearly one purpose for investors in these acquisitions is to harvesting the benefit of lowered property tax. It’s gotta be in their development pro forma. The staff report says a little about possible lowered revenue, later on:

In other words two huge apartment projects will inevitably generate less of the property tax than they generate now, but still require all of the city services, from infrastructure to police and “fire fighters.”

And that’s not all, Friends. The units thus restricted will not count towards Fullerton Regional Housing Needs Assessment (RHNA) quota – the idiotic number coughed up behind closed doors by the unaccountable bunglers at the Southern California Association of Governments. Here’s how the staff report explains it.

Well, that’s a kick in the head. So we still need another 13,000 units, per the SCAG quota. I have no idea what the City’s “affordable housing goals”are and I don’t see a reference to a supporting document that substantiates any of this.

To me this is a lose-lose situation unless your mission in life is to support the Affordable Housing Industrial Complex by subsidizing a tax reduction. It isn’t just about providing “affordable” housing. It’s about taxpayers ultimately paying more for municipal services to satisfy some hazy “goal” somewhere.

Fullerton’s Observer boohoo brigade will no doubt rejoice at this endeavor because, ya know, a housing “crisis” requires public subsidy and taxes really will fix everything. And doing something, even if it makes no sense, is still doing good.

Weird Times At City Hall

Update: a well-informed reader pointed has out that 7/7/26 was removed from the calendar in December 2025 because staff determined it was too close to Independence Day.

I have no idea why it wasn’t so designated on the CC’s schedule found on the City websiteuntil this afternoon.

This does beg the question as to why the meeting wasn’t rescheduled as an official hearing to make determinations regarding the budget and find out the status of the search for a new money-raising consultant. There seems to be almost no sense of urgency about the fact that the City still doesn’t have a budget for this fiscal year.

Wilshire Avenue Hosts Party

Yesterday the site of the former infamous “Walk on Wilshire” was home to a big party. The street was closed and lots of people set up chairs to watch World Cup soccer on a screen attached to a truck. A Friend sent over some images.

I don’t know anything about this get together – such as who organized it, etc. But one thing I do know is that it proved Wilshire can be closed for special events and then reopened.

This is what many people were saying all along as Fullerton’s Boohoo idiot brigade and the Observer nitwits clamored for permanent closure as an F-U to automobile traffic, and of course to residents and businesses in the 100 block of West Wilshire. Fortunately a modicum of intelligence prevailed and the wingnuts Zahra and Charles couldn’t get three votes to keep the street closed.

Put the bollards up, take the bollards down. So simple. So cheap, and so damned commonsensical. And of course nobody ever said that individual “parklets” couldn’t be utilized either, except that by the time City staff was on it as make-work, the clusterfuck naturally occurred.

So yesterday a few people were no doubt temporarily inconvenienced – instead of a lot more people being inconvenienced, and worse, all the time.

Boutique Hotel Remains in Limbo; But Johnny and Larry Have Been Busy

Warning: Conceptual only, not to be taken seriously!
The self-professed experts…

The City of Fullerton’s foray into boutique hostelry remains a big mystery to the public, partly because the public doesn’t know much, if anything about it; but mostly because the City staff doesn’t know what to do with their boondoggle and the people who voted for it – business experts Shana Charles and “Dr.” Ahmad Zahra certainly aren’t talking. Come to think of it, neither are the two councilmembers who voted against it – Fred Jung and Nick Dunlap.

Zahra’s Fullerton Transparency claque and the Fullerton Sisters are silent as the proverbial tomb.

Why is Johnny smiling?

The facts of this disaster hardly require another distasteful regurgitation, so I won’t do it, except to remind Friends that the City deeded over part of the Transportation Center parking facility to TA/Westpark for a pittance, given that they also change the entitlements making it worth 10 times what they sold it for. TA Partners is Johnny Lu and Larry Liu a couple of Chinese con men who had already pleaded guilty to fraud in LA County and who were in the process of going belly up on a huge loan in Irvine.

You may remember that the original grant deed that was recorded by Johnny and Larry was different than the one they recorded later, and the property description in the second recorded deed fraudulently includes the east end of the Depot loading dock now under leasehold by the Bushala Brothers, Inc., whose clock is ticking on their agreement. What a fiasco.

And it may be getting worse. That seems hard to imagine since the property was handed over three and a half years ago and nothing has happened. The hotel and attached mega apartment is supposed to be complete by October 21, 2026. My recollection is that the hotel and the attached mega apartment was supposed to be done only a few months from now. How many legally required milestones have been missed remains a part of the Big Sleep.

Meanwhile Johnny and Larry are said to have taken out a loan against their Fullerton real estate. I guess someone was willing to bet on the come, or just as likely, wasn’t – ahem – fully informed. Which deed was used to describe the lender’s collateral? Must have been the most recent one that includes the loading dock.

If some new loan fraud took place we can add that to the legal entanglements between TA Partners and the family of the original brainstormer, Craig Hostert, now unfortunately deceased. The agreement with the City should have excluded TA from creating debt on the property with permission from the City. But Fullerton, being Fullerton.

This comical boondoggle is now well over 7 years old and still there are no signs of official communication about the state of this mess, let alone resolution. Is staff trying to find a replacement to keep the embarrassment alive and save face for the disaster? Who knows?

The People Have A Meeting

Last week “the People” held their own meeting in front of City Hall since the Fullerton City Council meeting had been cancelled for lack of a quorum.

Who were “the People?” Nobody was saying before the event, except that the organizers were springing for limited pizza.

The turnout, predictably, was a couple dozen of the usual agitators at City Council meetings – a combination of Fullerton Boohoo, Fullerton Self-righteous, Fullerton Angry and Fullerton Nuts.

The ostensible theme of the get together was to bitch about the usual stuff, including transparency, which was funny because Sanka Kennedy of the Fullerton Observer who advertised this event, didn’t even bother to say who was putting on what turned out to be an overtly political event, whose principal purpose was to attack Mayor Fred Jung and promote Connor Traut in advance of the upcoming Supervisorial primary election.

It turns out the shindig was the work of Fullerton Forward, a political action committee cooked by council annoyance Steven Sherry, one of those underemployed political cling-ons looking to make his way in a cold, cruel political world. He was the one who sprang for the dozen pizzas, apparently.

O, the sparkling rhetoric from Crazy Air-punching Tim Johnson. Little Angry Bird, Dancing Ms. Green Card, Professor Curtis Gamble, Tender Young Elijah, Oliver the No-account of Montecristo, and other luminaries! Stika Kennedy, erstwhile “journalist” addressed the gaggle, too, showing again her failure to distinguish journalism from partisan politics.

The booby prize…

Then, at last, to the mawkish business of “appointing” the “People’s Mayor.” Angry Johnson had already prepared certificate of accomplishment for the Dodgy Doctor from Damascus, Ahmad Zahra! What a surprise!!

The People’s Mayor contemplating his political future…and then free pizza for dinner!

The entire affair was an unwitting foray into comic opera, so at least some entertainment value was produced.

Questions about whether such an overtly political event on public property is legal and whether Fullerton Forward had permits or insurance to put on this affair are being raised by concerned citizens (see what I did there, Observers?).

The Money Grab

Fullerton’s illustrious ad hoc Budget Sustainability Committee was treated to a marathon “we’re cut to the bone” presentation by the City’s department heads last Tuesday night.

One of the interesting concepts for revenue enhancement, albeit one-time, came from our Director of Public Works Stephen Bise.

It seems that over time, unrefunded “engineering” fees from City permit applicants adds up. Currently, the City has about $700,000 in such fees sitting idly in a Public Works account. According to Bise some of the fees were collected way back in the 1990s. The City Council would have to put its seal of approval on the deal and a notice to the rightful owners of this money would have to be made.

Similarly, funds gathered from contractor bonds and not claimed piles up, too. Bise reckons that ampount is $145,000. Presumably the same process for keeping that dough would be deployed.

This situation begs the obvious question: what responsibility does the City have to notify its customers that they have positive balances; or better yet, why can’t the Public Works Department simply write checks and return the money to its rightful owners before it piles up? There seems to be an unwritten rule that the money belongs in City funds (gathering interest at least) until such time, if any, that the owners request reimbursement. It really is a form of indirect “taking.” These individual amounts may be small, but as Director Bise indicated, are substantial in aggregate.

Apparently Fullerton made a grab of these bond funds a few years ago that had accumulated up to 2016. That amounted to $800,000. The next decade’s worth is now on the table, apparently. Can the Council resist seizing this cash? I wouldn’t bet against it.

As to the process of notification I admit my ignorance. Are such notifications made to the real owners or their heirs and assigns? I wonder. It would be so much easier to put a public notice in a “newspaper of record” where virtually nobody would ever see it; and then put it on a Council Agenda, posted 72 hours before the meeting where even fewer people would see it.

Derek Smith and the Budget Sustainability Committee

Reading all that Das Kapital stuff will give a young lad a headache…

The Fullerton Boohoo claque has made a big deal about how Tony Bushala is unfit to be on the ad hoc Budget Sustainability Committee. His disqualification? He is involved in politics. He is a “rent seeker” in the words of Tender Young Elijah Manisserro, who remarkably is not ashamed at being a dedicated Marxist in the 21st Century. Bushala has a conflict of interest, these people keep bleating.

Bye…

Tony’s real offense is that he has money and is willing to spend it to keep aggressive imbeciles like Cannabis Kitty Jaramillo from getting into office; and for that he has gained the animus of the Damascus Dodger, Ahmad Zahra and his small collection of sycophants.

But Mr. Bushala is not the point of this post. Rather it is another member of the Committee, one Derek Smith.

Not a lobbyist, I tells ya…

Mr. Smith is Ahmad Zahra’s personal appointee to the group, and has a lot of interest in Fullerton’s budget. Why? Because he is the political lobbyist for the local union that represents marijuana dispensary employees. He is part of a coalition that has been trying to get these places legalized in Fullerton for years. Their point man is Ahmad Zahra who doesn’t seem to see a contradiction between dope use and his alleged Muslim convictions.

Smoke it down, Kitty…

In the the 2024 District 4 election Smith’s union funded a political action committee dedicated to electing Cannabis Kitty. He funded it to the tune of $60,000 which included a $4,000 payment to Andre Charles, husband of councilmember Shana Charles. How come? To elect the pro-cannabis candidate who would re-instate the old dope law repealed in 2021.

That’s a lot of political activity, activity that has received zero scrutiny by the Fullerton Observer Sisters, Sharon and Sickia. Come to think of it, the delicate rose petal Elijah Manissero has never mentioned it either. How’s that for hypocritical “transparency?”

Moreover, Brother Smith is not an accountant, or a business owner, or a entrepreneur. Instead, he is a dedicated union functionary, virtually the last person I would want on a municipal budget sustainability committee. The apex of Smith’s business experience has been blowing through $60,000 of his members’ dues on Jaramillo. Did he know about the fraudulent Scott Markowitz campaign? I wonder.

Applying the rhetoric and logic of Fullerton’s boohoos would immediately disqualify Derek Smith from the Budget Sustainability Committee. Will anybody apply it? I wonder.

In the meantime Ahmad Zahra the eager messiah of marijuana in Fullerton has once again raised the topic. The issue isn’t dead as far as the dope lobby is concerned.

The Doctor is In

Some skeptical folks in Fullerton have long wondered aloud if 5th District Councilman Ahmad Zahra is really a doctor. His acolytes and camp followers in the Fullerton Observer call him “doctor” and he doesn’t correct them. Still there’s no evidence that he ever practiced medicine, so the skeptics had some reason to wonder, given Zahra’s ever shifting “origin narrative” and omission of salient features of his past – like the gay man’s stop over in Little Rock, Arkansas to marry…a woman.

But now the truth will out. The FFFF Research Department has done a deep dive into photographic evidence and discovered unequivocal proof of Zahra’s doctorhood.

Unless it was Halloween.