The Tax Meeting

There it goes…

The City is meeting tomorrow to to talk about putting a sales tax on the November ballot.

The staff report wrongly states that the City Council requested this item, which is an intentional lie. The matter was placed on the agenda by the minority of Ahmad Zahra and Shana Charles, two individuals I wouldn’t trust to run a lemonade stand.

Show me the money…

These two fought long and hard to discuss the issue on June 4th, even though no public notice of a tax was on the silly revenue-grab agenda.

Tomorrow we will see a small army of Fullerton Boohoos crying out for a 13% sales tax increase on the ballot. Obviously they want to go for a general use tax because that only takes 50%+1 to win, whereas a special use tax requires 66% – an almost impossible hurdle.

But there’s the rub. A general use tax requires a 4/5 council majority to put it on the ballot, and the pro-tax Zahra and Charles don’t seem to be able to manage the simple majority required to put a special use tax on the ballot.

So what’s the point of this charade? We’ve seen this Zahra act before: mobilize his coterie of “underserved” residents to harangue the Council, and thus embarrass Jung, Whitaker and Dunlap.

Put your money in the bucket over there!

But this is not the ludicrous Trail to Nowhere, and bullying won’t work. There’s only one meeting available to get this done, and tomorrow won’t be it.

“Appetisers” for all…

The only question I have is whether District 4 candidate Vivian Kitty Jaramillo will stand up and support the tax.

Boutique Fun and Games With Johnny Lu and Larry Liu

FFFF has already reported on some of the colorful financial background of Johnny Lu of TA Partners, our City’s stand-up partner on the so-called “boutique” hotel project at the railroad tracks. This hot mess even has a name: The Tracks at Fullerton Station. The development has morphed into a monstrous minotaur by adding approval for a massively dense apartment – an amalgamation which gives us a shocking 130 units per acre, overall.

Well, anyway, we previously shared the news that Johnny was in default on massive construction loans he somehow finagled for projects in Irvine a few years ago. The lender on those has foreclosed on those properties.

That can’t be good…

And here’s some even more recent news. It seems that Johnny has waded out into more legal problems over in LA, according to The Real Deal, a real estate news source. Here’s the thrust of the complaint by bamboozled investors on a “project” at Playa Vista:

The investors — who form an entity called RUC14 Playa LLC — sued Lu, Liu and TA Partners, alleging commingling of funds, fraud and misrepresentation, court records show. Attorneys for TA Partners, which have requested for arbitration in the case, did not respond to a request for comment.

Johnny and his partner, Larry Liu, declared their bankruptcy on the Playa Vista project. But let’s give the misunderstood boys a break. A little contrition goes a long way, right? Said Larry:

“We would like to offer our apology for the non-compliance during project execution,” Liu wrote in the letter. “Self-reflection is needed and I would like to apologize.”

Whatever any of this means to “TA Westpark LLC.,” the corporation that was awarded the Fullerton project entitlements (without any competition) remains to be seen. But now Johnny and Larry have equity – and boy have they got equity; see, Councilmembers Zahra, Charles and Whitaker handed them a bonanza – a plot of land available for hundreds of units – for a mere pittance: $1.4 million less associated costs.

Ms. Charles happened to mention at a council item about raising funds for Fullerton’s fiscal disaster, that the boutique hotel plan was moving along. But there was no mention of the fiscal disaster facing Johnny and Larry Enterprises. Does she even know? Does she understand what is happening? Does she care? Probably no on all three.

The plan here is crystal clear. At this point nobody is going to lend Lu and Liu a bent nickle. But these fine fellows will have entitlements worth tens of millions on this project; a project that never should have happened in the first place – an unsolicited proposal by a local guy who had no chance of building a birdhouse.

This project will be reassigned to a third party, someone the City “business development” expert bureaucrats will be sweet-talked into recommending. And then Johnny and Larry will quietly disappear from Fullerton with millions belonging to us.

Fullerton being Fullerton.

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.

Oops, They Did It Again

Looks likes Fullerton’s cops have dispatched another wacked out trouble-maker. A few months ago they performed the same duty at the McDonald’s over on Brookhurst St., although that fellow was only wielding a belt.

Here’s the FPD statement, another self-serving literary effort, short on details, but clearly suggesting that the police ‘feared for their safety.”

Fullerton Police Dispatch received a 9-1-1 call on June 15, 2024, at 5:04 am regarding a male armed with knives and threatening people in the 200 block of E. Imperial Hwy. The reporting party told the call taker he was a victim of weapon brandishing and to send multiple officers due to the male’s dangerous behavior.

Fullerton Police Officers arrived on the scene and contacted a male adult, matching the provided description, holding what appeared to be a knife in each hand. The male was directed multiple times to drop his weapons; however, he was uncooperative with the commands. The male suddenly began running towards officers with the knives in his hands and failed to comply with commands to stop. An officer-involved shooting then occurred.

Officers began life-saving measures while paramedics responded. The suspect was transported to a local trauma center, where he was later pronounced deceased. At this time, we have no information about any injuries to witnesses or potential victims of this incident. No officers were injured.

A knife and a boxcutter were located at the scene in close proximity to the suspect (pictured below).

Photos of the knives recovered at the scene of a Fullerton PD Officer Involved Shooting.

As standard protocol, the Orange County District Attorney’s Office responded to conduct an independent investigation into the actions of the officers during this officer-involved shooting. Fullerton Police Crimes Against Persons Detectives will investigate potential criminal acts committed by the suspect.

Per State Law, we will release all relevant videos, recordings, and images via a Critical Incident Community Briefing Video within 45 days.

The deceased suspect’s identity will be released by the Orange County Coroner.

This investigation is ongoing. Based on the initial 9-1-1 call, we believe there may be others who may have witnessed or been a victim to the suspect’s actions leading up to this incident. We encourage any additional witnesses or victims to contact Fullerton PD Detective L. Ramirez at (714) 738-5334. Those wishing to provide information anonymously can call the Orange County Crime Stoppers at 1(855) TIP-OCCS or can visit their website at http://www.p3tips.com/913.

Last time the police wasted the perp with the ironically named “less lethal” projectiles. Here, no mention is made of the weapon that killed the man.

Oh, well, with our dynamic DA Todd Spitzer, the cops’ best friend we may be sure a complete investigation will be performed with attaboys all around.

New Well. Same as Old Wells

A new testing well has recently appeared on Walnut Avenue next to the source of trichloroethylene contamination at 311 South Highland Avenue. Friends may remember that this contamination has been monitored by the Feds and the State agency responsible for tracking such things. Here’s the drill rig crew hard at work installing the well casing.

Of course FFFF has already noted the existence of the contamination of the property and its neighbors in the context of the dismal $2,000,000 Trail to Nowhere, pet project of Ahmad Zahra and his colleagues on the City Council; FFFF also identified ten testing wells on the trail site, plus a couple more in the middle of Truslow Avenue. Apparently testing is now taking place to the north, on Walnut Avenue, too. That’s not very good, is it?

The City of Fullerton claimed and still claims that there is no problem with their trail site and apparently the State Natural Resources Agency, the bureaucracy that doles out grant money, remains incurious as to why no mention of trichloroethylene has ever been made by Fullerton’s environmental consultants in their reporting.

Meantime the City continues its silence about the growing plume that could be moving northward, too.

Of course public employees are indemnified for their activities, no matter how incompetent or based in misfeasance. It’s the public that gets to pick up the check.

I Wanna Paint It Black

So somebody noticed that a new downtown “club” called Kalaveras is opening. Looks like they have painted the rear of their building black.

Apparently they have also expanded their business into an adjoining property.

The trouble is, according to our correspondent, their Conditional Use Permit is only for 122 W. Commonwealth and work is being done next door – at 120 W. Commonwealth – which is not covered under the CUP. Oops. It looks like they’re actually putting in underground plumbing.

Black is the new black…

I don’t know if this information is accurate, but I know if it is, the City will likely do nothing about the scofflawry, Fullerton being Fullerton.

As far as the black exterior is concerned, it’s hard to believe that the City actually approved of this since elevations must have been submitted along with the CUP application, and yet Fullerton’s Planning Department has been so inept and careless in the past that maybe it seemed okay, Downtown Fullerton being all about coolness and hipness and a wonderful, vital, -$1,500,000 per year success, and all.

It’s entertaining to recall that the location of this operation is the same place that Slidebar, DTF’s Nexus of Nuisance used to occupy. That owner, Jeremy Popoff, went years operating without a CUP, breaking just about every rule in the book.

A Shameless Hustle

A good Friend received an interesting piece in the mail the other day, and sent it in to FFFF.

It’s a solicitation from Scott Flynn, President of the FPOA – Fullerton Police Officer’s Association – the cop’s union in Fullerton.

It seems your support of the police union “has been a beacon of hope that has helped fuel many initiatives to make our community a better place.” Somehow your donation helps the cops with their “support” of all sorts of philanthropic efforts. What that support might be is left to the imagination of the reader.

If you give them some big money you will get incredibly valuable gifts as a “VIP.” An “engraved” tumbler and a “custom donor plaque” will be yours for the low, low price of $1000.

Of course the solicitation is based on the idea that the giver isn’t very bright. The obvious first thought is that if you put the FPOA’s decal on you car somewhere, you might just avoid getting that next, expensive, moving violation. Could that be true? I don’t know, but the thought obviously crossed the minds of the solicitors and the donors.

Second, if you look closely at the piece you notice something interesting.

Of course this operation isn’t a non-profit and you can’t deduct your donation. In fact the FPOA exists for only two reasons: first, to use its political influence electing councilmembers to squeeze evermore higher wage and benefits out of the citizenry; and second to remain as unaccountable to the civilian authority as possible.

The whole thing is hardly different than any other mail scam trying to get people to part with their money. There is no charitable purpose here, just a way to get people to support a public employee union by pretending to be doing good works.

Why wouldn’t any intelligent person simply donate to the real and worthy charity of their choice, and get a tax deduction, too?

Just How Muslim is Ahmad Zahra?

The other day I found a communication in the FFFF In Box. It was a note and a picture.

It wasn’t a good year…

Apparently Fullerton’s District 5 Councilman Ahmad Zahra was seen at a recent fundraiser for some kids’ art program drinking the red wine that was being proffered to paying guests. And maybe even non-paying guests, since tickets went for $75. Anyway, I always believed drinking alcohol was a violation of Islamic Law.

Will not work for new clothes…

Zahra has peddled his “first gay Muslim elected official” brand and I’m wondering if he is even practicing the tenets of Islam at all. Word from City Hall sources is that he was seen serially violating the fast mandates during Ramadan – Sawm – observation of which is one of the 5 Pillars of Islam.

Of course Mr. Zahra’s religious beliefs, or lack of same, should be his own business, but like the Christian politician who uses his/her faith as an instrument of electoral salesmanship, we are justified in wondering about the veracity of the claim.

Zahra has made up a lot of stories about himself, and has left out some pretty interesting facts about his ever-morphing origin stories – like having a (female) wife in Arkansas, and the people he represents have the right to know if he ever tells the truth about himself.

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.