Jeff Oderman: The High Price of Bad Advice

Rutan T3661222739_afe6cd6f9b

Fans of Evita will remember these lyrics: “When the money keeps rolling in, you don’t ask how. Think of all the people guaranteed a good time, now!”

Well, a lot of people at Rutan and Tucker Law firm have made plenty $$$ off Fullerton taxpayers, especially its redevelopment attorney Jeff Oderman.

Oderman has a record of loyalty to city staff and staff-directed projects, even if it means bamboozling the council (acting as redevelopment agency). Take the City Lights low-income housing project on East Commonwealth (next to the Old Post Office). In 1997 the Agency-assigned developer Caleb Nelson (who was living out of his car) disappeared. The whole deal should have ben sent back to the Council for reconsideration. A request-for-proposal should have been issued to give developers an equal opportunity.

Instead, LA developer Ajit Mithaiwala appears from nowhere to take over the project. Then-RDA Director Chaplupsky starts dealing with Ajit, until council members Norby, Sa and Jones start wondering aloud– “where did this developer come from?” Oderman claimed Ajit was now the developer. Not true, Jeff! Despite demands from the council majority, no document was ever produced showing that Mithaiwala had ever been legally assigned the project. His shoddy construction of LA projects was also a concern.

voila, it's that simple
voila, it's that simple

The council saw past Oderman’s bad advice and voted to end the project. Then, Mithaiwala threatened to sue Dick Jones personally for derogatory comments he made about future tenants. Jones got no protection from Oderman and instead Jones was pressured to change his vote. He did, and the project went through.

In 1999 the City started a breach-of-contract suit against Southwest Engineering, Inc. for non-performance on the Basque Yard remodel.  It turned out that Southwest had used Rutan and Tucker to defend itself against a similar suit with another city. For a firm to represent both parties in a lawsuit–even if not the same case–is a serious question of legal ethics. Yet Oderman never told the council, who found out about it from a third source–when it was too late to change lawyers.

Oderman then recommends the City settle with the non-performing contractor, paying Southwest over $1 million.

Now Oderman is giving the council/agency the same bad advice on blight in the proposed expanded redevelopment area. Its passage will lead to at least two legal challenges on the bogus blight findings. County Counsel Attorney James Harman and FFFF’s attorney Bob Ferguson have stated convincingly and repeatedly why the blight findings fail legal muster.

Similar blight findings in many other cities–including Upland, Mammoth Lakes, Diamond Bar, Murietta, Arcadia and Glendora–have been thrown out by the courts. Fullerton’s may well be headed in that direction. Has Oderman cautioned the council about the legal risks? Or is he there to provide cover for the staff and the consultants?

But, what does Oderman care? A lengthy lawsuit only adds to his hourly billings ($400/hr. adds up pretty fast). Win or lose, he’ll still be paid. If Oderman is really so confident about winning the long legal blight fight ahead, then pay him on a contingency!

Please, City Council–hire a lawyer to represent you–not defend staff boondoggles. Until then, the money keeps rolling in for Rutan and Tucker! $400 per hour for 15 years of bad advice.

Thanks suckers!
Thanks suckers! J. O.

Roscoe Finally Comes to his Senses

Rosco
Roscoe's illegally constructed outdoor patio

Dear Friends, a few weeks back Friends for Fullerton’s Future filed an appeal of the appalling decision by the Fullerton Planning Commission to grant a bogus “special event” permit to Roscoe’s in order to legitimize the ongoing violation of the City ordinance regarding outdoor live amplified music in the C-3 Zone. The appeal was based on the fact that playing live amplified music outdoors is detrimental to the health, safety, peace, comfort and general welfare of persons visiting, residing or working in the neighborhood and is injurious to property or improvements in the area.

We are pleased to inform you that as a result of our appeal, Roscoe’s has withdrawn their application, therefore no public hearing on Roscoe’s appeal will be necessary.  calm

Redevelopment Hustlers Undermine Own Credibility on Expansion Plan

Loyal Friends, on June 16th the city council again demonstrated why the process behind selecting the boundaries of the proposed expansion area are almost completely arbitrary. The council voted 3-1 to remove 7 selected properties from the area.

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The criteria employed in the deselection are these:

  • the properties are on boundaries,
  • they are not necessary
  • and the owners simply ask to be removed.

Now some cynical folks might surmise that these exclusions were just done to shut people up,  including former Congressman Bill Dannemeyer, in fact we have already suggested that very same thought.

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What is inescapable is the conclusion that if these 7 properties are not necessary than they never should have been included in the first place. How many haphazard lines drawn on a consultant draft table include non-blighted properties?  The statistics presented by the lone dissenting vote, Shawn Nelson suggest very many  indeed.

We suspect the city staff and their consultant are pursuing an age old strategy:  grab all you can, get, and then hang on to as much of it as you can.

squirrel1129

The Fullerton Fabricator & City Hall Apologist

did anyone see where I put my barbeque sauce?
Ronald, where did you put my barbecue sauce?

The Fullerton Observer continues to sink to new lows in its coverage of important Fullerton issues. Or lack of coverage.

In its most recent edition it published a redevelopment article which was simply an interview with RDA Director Rob Zur Schmiede, whose very job depends on RDA expansion. Wow, that’s cutting edge investigative journalism!

The Observer has totally ignored the RDA’s $6 million McDonald‘s move
. An evil corporation making kids fat, a giveaway to the rich, money intended for blight going to promote junk food! Fast Food Nation was written by muckraking journalists that the Observer should emulate. $6 million to help McDonald’s make high school kids fatter!

McMore please
McMore please

The Observer has completely ignored the story that has excited even usually tepid reporter Barbara Giasone. They will NOT embarrass the council majority that it helped elect with their endorsement. Jones, Bankhead, Quirk, Keller were all backed by the Observer.

Could it also be that the Fullerton RDA–is paying for quarter page ads in the Observer?

The Observer has published two pieces by Supervisor Norby expressing the County’s opposition to the RDA expansion, but only after leaking both articles to city staff in time to write rebuttals. The rebuttals themselves are not fact-checked by anyone and are filled with lies.

In the current July 2009 edition (Page 4) Kennedy bewails the 1994 recall of Bankhead after he “voted to support a ½ cent utility rate increase to keep the city from going bankrupt”. Three wrong statements in one sentence!

is that you Molly?
is that you Molly?

It was NOT a utility rate increase, but a utility TAX on gas, water, electricity and cable TV. It was NOT a half cent but 2%. It did NOT keep the City from going bankrupt.  In fact, it was repealed soon after the recall and has saved us Fullerton tax payers over $ 100 Million dollars over the past 15 years and the City is just fine!

True to form, the Observer has supported every city, county and state ballot measure that increased taxes, most of which went down in defeat. It especially likes sales tax hikes, which disproportionately affects the poor–the supposed constituents of a “progressive” paper.

If there is Blight in Fullerton, Who’s Responsible For It?

The proposed redevelopment expansion in Fullerton hinges upon on the city councils ability to discover “blight” in this vast area. Two of the biggest cheerleaders for this expansion of government power are councilman Dick Jones and Don Bankhead who are happy to make the necessary “finding” of blight.

u mean to tell us that blights been going on?
you mean to tell us that blights been going on?

Let us reflect for a moment on the irony of the situation. Bankhead has been on the city council for over 20 years, and Jones has been on it since 1996, 12 years and counting! So what have we got going on here? According to Jones and Bankhead “blight” has been proliferating at a record pace on their watch! So what does this suggest about their competency to fight blight, are these the guys we want  running even more redevelopment?

The whole thing would be sort of comical if the potential consequences for the property owners in the proposed expansion area weren’t so serious.

hey, who's been in charge here anyway?
hey, who's been in charge here anyway?

Make Work Project: Expand Redevelopment

 

Run for the hills, them damn taxpayers are on to our scheme
Run for the hills, them darn taxpayers are on to our scheme

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.burgers-and-books45735106

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.

What Has the City Council Accomplished?

Once a bold master planned development and site plan
Once a bold master planned development with a pioneering spirit
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Now, the pioneers are gone and so is their spirit

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.

So Who’s Responsible For Downtown Fullerton’s Amerige Court Turkey Project?

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Classic Circus Mid-Evil Revival

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?

George knows all about turkeys
...a turkey from day 1