The Abdication

Lots of Indians, but no chiefs…

I’ve been watching Fullerton politics and governance for for a long time – since 2008 or 2009, in fact. One thing that has consistently struck me is the way in which Fullerton’s elected officials have completely and almost happily abdicated their responsibility to determine the direction of policy.

It has always been the goal, in principle if not in practice in modern representative democracy, that policy would be established by electeds, and administrated through a protected civil service bureaucracy.

Determining policy – the philosophical direction you want the town to take – isn’t easy in the “City Manager” form of government, a form deliberately created to remove any sort of executive authority from elected representatives. But with that set-up came something else, too: the difficulty of people’s representatives in establishing policy direction, and doing it without violating the Brown Act strictures on open meetings.

Nevertheless, the responsibility is still there, even if it easier to have photo ops, and ribbon cuttings and the like. Sadly our electeds have failed; failed with remarkable banality and complacency. Former Councilman and Fullerton Police Chief Pat McKinley once illustrated the point when challenged for his “failure to lead.” He exclaimed that councilmen weren’t there to lead – that was the City Manager’s job.

Lately the policy role abdication has been seen with the regurgitated, spit out, re-consumed and regurgitated again noise ordinance, an ongoing embarrassment that has plagued honest citizens for over fifteen years. I read the staff report on the recent noise effort, a report that justifies a decision to actually increase acceptable levels, protect offenders by including an ambient noise mask, and locates the noise metering away from the source whence it can be muddled by an equally noisy neighbor.

The staff report is nothing but a list of events that have occurred since 2009 when the City Council last expressed a coherent position. Nowhere in the staff report is there any discussion on the policy decisions behind any of the activities. Why not? Because there weren’t any. In the same way that the incredibly costly, drunken binge known as Downtown Fullerton has escaped any intelligent policy conversation, the noise nuisance issue, a subset of the former, has evaded policy discussion as City staff – behind the scenes – has diligently avoided doing anything to enforce existing code, and worked very hard to reduce the requirements.

So what has happened is a vacuum in which each new action seems disembodied from policy conversation; that’s because it is. And our council steadfastly refused to have an open and honest conversation of what it wants, abdicating its responsibilities.

One size fits all…

There is a long list of issues that our elected representatives should be addressing from an overarching policy level and aren’t. This sort of thing takes thought; and some hard work in ascertaining whether your city employees are really doing the thing you want; or not, as in the case of the Trail to Nowhere. It’s easier just to ram through the Consent Calendar on the nod, rubberstamp the ridiculous, clean your plate like good kids, and move on to the photo ops and the trophy ceremonies.

I Think I’ve Seen This Movie

It’s real expensive, but it sure is short…

When thinking about the Trail to Nowhere it seemed to me that I had seen this same sort of thing before. Then it struck me. Of course.

An expensive and unnecessary project that dragged out for years, and that was supposed to be paid for with other people’s money, “free money” as it is known in City Hall, I recalled.

It may have been expensive, but it sure was unnecessary…

I remembered because I wrote about it, here. The second elevator towers at the Fullerton train station, a project so ridiculously over-engineered, so expensive, so reliant on phony ridership projections and so expensive and mismanaged that it ended up raiding Fullerton’s own Capital Budget to the tune of $600,000. In the end no one knows how much was actually spent on that boondoggle when everything was said and done. But one good thing that came out of it was teaching me to appreciate how things are done in Fullerton, and how there isn’t one cent’s worth of accountability on the part of anybody.

If the Trail to Nowhere actually ever gets built but is way over budget, unused, unmaintained and falls into decrepitude, who will stand up to take responsibility? Not the City Council who approved it without question. Not City staff – the chief architects of this disaster in-waiting are already gone – nor will the City Manager, who will be gone as soon as his pension formula tops him out. None of the people stirred up to insult and harangue the City Council will be in evidence and the proprietors of the Fullerton Observer, if they are still around annoying people, will not be searching for those accountable. No one else will be, either.

Maybe the less said, the better…

Remember the multi-million dollar Poison Park intergenerational fiasco? Has anybody ever taken responsibility for that poster child of bureaucratic incompetence and political indifference? Of course not. That would be a horrible precedent. Fullerton.

The Sound of Music

Business is booming…

Over the past two decades FFFF has documented the mess our City government has made of the financial sinkhole know as Downtown Fullerton; how laws and rules have been ignored to help the myriad bar owners, and how what is undoubtedly a fiscal municipal liability continues to be characterized as some sort of wonderful accomplishment.

Matt Foulkes. The spin out left casualties…

Planning Directors and Redevelopment Drones came and went: Dudley, Zur Schmied, Zelenka, Haluza, White, Foulkes, each one as useless as the one that came before, and each willing to put the scofflaws’ interest ahead of the citizens.’ To be fair, the political interference was there, too, nowhere better exemplified than in the case of our now-departed Mayor-for-Hire, Jennifer Fitzgerald, who had a for sale sign on her back. And of course City Attorney Dick Jones was there every step of the way to add obfuscating smoke into the downtown atmosphere.

dick-jones
Staying awake long enough to break the law…

Nowhere is the Fullerton downtown dysfunction better seen than in the complete hash the bureaucrats in City Hall have made of the noise situation. At first, the noise ordinance was simply ignored by the cops and by code enforcement. And for the past 15 years the City has made a concerted effort to allow amplified outdoor music downtown, to delay action (we’re still studying it), and to water down whatever official rules were on the books.

For the past four years nothing has happened and of course the nightclub operators have continued to take advantage of Fullerton’s de facto unwillingness to enforce anything.

And now the issue has finally resurfaced yet again, and once again the effort is likely not to work for us, but essentially, to admit defeat and allow the raucous free-for all to become official.

In December a new stab at a noise ordinance addressing outdoor music was placed on the table in front of the City Council.

Evidently the proposed ordinance was so bad that the our otherwise malleable City Council turned it back for rework. I don’t know what was in it because the City Clerk’s webpage doesn’t work. But supposedly the thing will be coming back on Tuesday the 29th and hopefully we will be able to see what sort of surrender our staff is coming up with.

The Strange Tale of Johnny Lu’s Grant Deeds

Enhanced with genuine brick veneer!

By now Fullerton City Hall is aware that their partner in a boutique hotel/apartment high-rise on Santa Fe Avenue, TA Westpark LLC, is in trouble. TA Westpark Fullerton., AKA Johnny Lu has defaulted on a massive loan, previously borrowed to complete projects in Irvine.

Why is Johnny smiling?

The fallout from this embarrassment remains unknown, although there are plenty of questions that need to be answered, and sooner rather than later.

One of the questions involves the transfer of the public property ownership at the site to TA Westpark Fullerton, LLC before proper project approval, a desperate, and of course, totally unnecessary act. And the actual documents supporting ownership of the land in question need to be examined, too.

On December 22, 2022 the City sold the land at a huge discount to Lu. Check out the grant deed:

By now Craig Hostert, whose brain-child the boutique hotel was, is scratched out and TA Westpark Fullerton, LLC, a Delaware corporation, is the proud owner of the land and the transfer is signed by a “managing partner” of a whole other entity – “TA Partners.” Looks like Hosteret was bought out or walked away, abandoning his baby.

But, as they say in the infomercial, wait, there’s more. A quick check of the State of Delaware’s corporations roster doesn’t turn up any results for TA Westpark Fullerton, LLC. Hmm.

No responsive records…

And here’s something else. A few months later a new grant deed was promulgated and recorded at the County of Orange. Here, the hard to find Delaware corporation deeds the land in question over to TA Westpark Fullerton, LLC, a California corporation.

Something is odd here, and it’s not just the amateur hour handwritten changes on the original deed. Did the City sell this property to a non-existent corporate entity? If so, hasn’t some sort of fraud occurred? Why the shell game here, and could the original deed be considered invalid in retrospect?

No, I wasn’t asleep. I was praying…

We could ask these question of Dick Jones of the “I Can’t Believe It’s a Law Firm” law firm, because I doubt the City Council will make inquiries of their ace lawyer. Getting an honest answer from ol’ marble mouth? A rare and precious jewel.

Some might think this entire fiasco is going to get worse before it gets better. I’m not sure how that’s possible.

Bungled Boutique Hotel May Be In Big Trouble

Friends probably remember that FFFF has been relentlessly critical of the dubious scheme approved by our City Council to underwrite a downtown boutique hotel and uber-dense apartment project on a parking lot owned by the City and used by Metrolink commuters.

Here’s a reminder: three councilmembers Bruce Whitaker, Shana Charles and Ahmad Zahra voted to sell this property to a developer for a mere $1.4 million (less site material removal) while simultaneously time jacking up the value of the land by approving density 2.5 times the limit specified in the Transportation Center Specific Plan. It was a gift of public funds at least ten million dollars.

Here’s the fun part. The original and completely unqualified baby daddy of the project, Craig Hostert, didn’t have the wherewithal to make the deal. After years of failing to perform on his Exclusive Negotiating Agreement and numerous extensions, Hostert’s West Park Investments, LLC joined its non-existent forces with TA Partners Development of Irvine, Johnny Lu, proprietor.

Mr. Lu, the new face of the project, appeared at council meetings to seal the deal with a ration of gobbledygook bullshit.

Now it appears that Mr. Lu may not have been the best choice of partner according to the Real Deal Real Estate News.

Why is Johnny smiling?

It seems that Johnny has gotten himself in over his head on two projects in Irvine, including second bridge loans that he has now defaulted on. And of course Sunayana Thomas, Fullerton’s crack “business development” director seemingly failed to inform the City Council of Mr. Lu’s impending financial embarrassment, something that should have been revealed in even a cursory perusal of TA Partners’ asset to debt ratio and its balance sheet.

And then, of course there is the problem with the completely incompetent concept of rushing the approval to transfer of title to the land, before the deal had received final approval.

By now the Council has possibly, though not necessarily been informed by the Fullerton City Manager, Eric Leavitt, of the problem, but where does the deal stand? Title to the property has been transferred from the City to and through Lu’s companies*, presumably for the original sale amount. But if TA Partners can’t perform, will the City get its now very valuable property back, or will it be encumbered by bankruptcy receivers? Will the City, in order to save face as it always has, permit Mr. Lu to assign his rights and interests to another party as a face-saving strategy? If that happens, will the original bad idea still go forward, or will the Council approve something even worse as a sop to a new developer so to avoid admitting their horrible mistake in the first place?

You can try asking Whitaker, Charles, or Zahra, the architects of this inexcusable and completely avoidable mess, but don’t hold your breath waiting for a response.

* Topic of future post

Part II: Is the “Trail to Nowhere” Poisoned?

It could be. Last post I described how the the UP Park was contaminated and shut down for remediation just after $2 million were sunk into building a park. Nobody in the City bothered to do an Environmental Analysis.

I asked, rhetorically, whether the rest of the long UP right-of-way had been subsequently tested for toxins in light of the fact that trichloroethylene (TCE) had been detected on the property at 311 South Highland Avenue, a property adjacent to the proposed Trail to Nowhere. It seems that some years ago the Hughes Corporation used the solvent to clean up the circuit boards they made at this location, and the EPA still regards it as an active site.

A trail runs through it…

A little digging uncovered the fact that ground zero seems to be the west end of the property where testing has been periodically done in the area of a likely dump site for the nasty TCE toxin. Apparently there are several monitoring wells located in the yellow areas circled in red in the image below.

Please note the proximity to the Trail to Nowhere of the wells in the lower left. 15 feet? 10 feet? 5ft? Surely somebody in the Parks or Engineering Departments gave thought to this when the Trail to Nowhere concept was developed; when the grant application was made; even when the proposed project budget was laid out. No? If not, why not? How could they not have known? The EPA has recognized this as a site of TCE ground water contamination where a toxic plume is heading southward – under the proposed trail.

At this point questions are starting to pile up. Questions that may have uncomfortable answers.

We are fortunate that Messrs. Dunlap, Jung and Whitaker have put the kibosh on the silly and wasteful Trail to Nowhere proposal for other common sensical reasons. And yet there remains the problem about lack of disclosure to our elected officials in their decision making process, and perhaps even in the grant application itself.

Fullerton’s Fiscal Ship About to Take on Water. Nobody Has a Clue What to Do

Gulb, glub, glub…

A few weeks ago the Daily Titan published an article about how, in a few years, Fullerton is going to be running in the red. Deep red. City projections point to being upside down $19 million between 2024 and 2028. Now that’s not very good, is it?

Here’s the grim forecast:

Going the wrong way…

Naturally, the article quickly devolved into a vehicle for advocating the hiring of more people and paying them more, replete with completely fraudulent comparative pay statistics. On hand were Ahmad Zahra and his helper Shana Charles to bleat about unfilled positions and service deficits, always the first opening salvo in a new tax proposal – like the one Zahra pushed hard in 2020.

The head and the hat were a perfect fit.

Doug Chaffee, the senile Fourth District Supervisor of Orange County and a former Fullerton mayor contributed this gem to the conversation: “I think I would have been a little heavier on keeping our staff because they are the lifeblood of the city. They do the work.” Uh, huh. He failed to mention his own inept culpability in mismanaging Fullerton’s budget for years.

Gimme some of that do-re-mi to waste…

Hilariously, Zahra seems to think the phrase “economic development” has some sort of talismanic quality, as if there were anything City Hall could do to produce it. It never worked during the heyday of Redevelopment and it won’t do anything now. It’s just a shiny distraction that can’t even pay for the bumblers who are paid, and paid very well, to pursue it.

What economic development really means is a focus on increasing tax revenue to pay for the salaries and benefits of public employees and their bloated, guaranteed pensions. It would be refreshing if just once elected folks thought about less about raising revenue and more about living within budgetary constraints.

Mayor Fred Jung calmly opined that Fullerton has adequate reserves to handle the tsunami of red ink coming his way, but this is not reassuring. Fullerton went through the same crimson bath during the Fitzgerald/Chaffee/Quirk-Silva/Flory/Zahra regime, and anybody who thinks Fullerton is better off for the deficit spending it is a damn fool.

A Massive Gift of Public Money

In December, as the Friends will remember, the City of Fullerton sold a public parking lot to a so-called developer for $1,400,000. The “developer” had the task of building a boutique hotel and an apartment block. FFFF has already documented the ridiculous density the City has bestowed upon the project. So let’s revisit the topic of land value, a calculation based on the number of residential units a developer can cram onto a parcel of land.

Look, it even has the café the bureaucrats demanded!

In this case we know precisely how many units are proposed because the development agreement tells us. There are going to be 141 apartment units and 118 hotel rooms – rooms that will undoubtedly be converted to low income housing when the hotel concept fails. Dividing 259 units by $1.4 million gives us $5400 per “door” as they say in the biz.

Does that number seem low? I didn’t really know, so I contacted some pros at Land Advisors who informed me that a more typical number is in the range of $60,000 to $65,000 per unit in these parts, which produces a land value of about $15.5 million and above.

So the “economic development” geniuses in City Hall got the City Council to agree to a massive reduction in value for the sale of the land, a reduction that could be in the neighborhood of $14,000,000.

Now we all know that government and its agents shield themselves (or try very hard to) from accountability for this type of incredible giveaway. It’s not a crime to be stupid, and so there the issue of legal malfeasance can be fuzzy without proof of corruption. But here there is the issue of misfeasance that in this case justifies the initiation of a recall of the elected representatives who voted for this evident gift of public funds.

Mother’s milk…

And those three representatives are Ahmad Zahra, Shana Charles and Bruce Whitaker.

Now, undoubtedly, these three politicos would argue that they had great reasons for “subsidizing” this boondoggle, and that those excellent reasons are well-worth the $14,000,000 they happily pitched at the developer, an individual, we must remember, who brought this unsolicited proposal to the City. But the City, remember, never did its due diligence by opening up this concept (or any other) for a submission of qualifications by those who might have been interested. No. Not even after several years had gone by and the proposer had been granted several extensions of a Exclusive Negotiating Agreement and the proposal kept metastasizing.

Are a “boutique” hotel at the train tracks and yet another overbearing apartment block so important that they justify the $14,000,000 giveaway? Well, I would challenge Charles, Whitaker and Zahra to prove it to voters in their districts.

Track the Tracks. It’s all Based On a Con Job

The plan had problems…

So last time I resurrected the disaster of the proposed “boutique” hotel at the Transportation Center and noted that the land had already been sold – even before the so-called entitlements were in place. It was all crammed into the end of the year to avoid compliance with the new State requirements for getting rid of “surplus” land. The fact that the land in question is not surplus – it provides much needed parking for commuters and our esteemed downtown revelers – doesn’t seem to have entered any decision makers’ noggin. Common sense be damned, this is The Tracks at Fullerton Station.

Yes. I could do that job.

But I discovered the real travesty while watching the Planning Commission hearing on the proposed site plan and conditions for a hotel use.

See, the hotel concept somehow metastasized over the past five years to include a standard, massive housing block – yet another cliff dwelling – giving indication that not only was the new developer trying to cram his pockets with all he could get, but that that this new element may have been needed to ensure success for the whole endeavor.

And here’s where the swindle comes in. The density of the apartment block was developed using the entire site area. So our sharp planners took the 1.7 acre site and multiplied it by the Transportation Center Specific Plan limit of 60 units per acre. That’s 99 units. Then, because the developer was proposing 13 “low to very low” units he got a “density bonus” of another 42 units, per State law. If you’re counting, that’s 141 units.

But wait! Those 141 units sit on only 60% of the property, the other 40% being dedicated to the hotel.

Think about that. The whole site is being used to justify the massive density on only a portion of the site. Meantime the hotel proposal has an additional 118 rooms on its part of the site. Friends, let’s do some math. 118 plus 141 equals 259 units for the entire site, or a jaw-droppingly massive 152 units an acre, 2.5 times the density allowed in the Transportation Center Specific Plan!

How do I know the percentage of use for hotel and apartment block? Because the developer is asking for, and getting, a legal parcel division that shows separate parcels for the hotel and apartment. And here’s the Tentative Parcel Map submitted to the Planning Commission:

Based on the developers own Tentative Parcel Map, the land underneath the apartment component amounts to 42,684 square feet, which is 98% of an acre. This entitles him to only 59 units per the Specific Plan. Adding the State density bonus of 40% brings the allowable total to 83. But he’s getting 141. And a hotel with another 118 rooms on the same 1.7 acres.

Finally, I have to point out that the City Council itself – specifically Zahra, Charles and Whitaker already approved a Mitigated Negative Declaration for this half-baked obscenity in December, even though it clearly violates the Specific Plan that all the planners kept nattering about. That isn’t legal, although this, is Fullerton, meaning that nobody gives a damn.

I would like to report that the Planning Commission was all over this scam and was outraged. But of course I can’t. Instead the 5 commissioned turnips quibbled over electric car charging stations and other gnats on their way to swallowing this camel whole. Honestly, you could take five average people off Harbor Boulevard and you would end up with a more intelligent and sensible commission.

Well, that’s enough of that. My next post is going to be about the idiotic solution to a made-up bus station problem.

A Disaster in The Making

Yes, I am more qualified…

There are all sorts of names for boobs and knuckleheads that keep making the same sorts of mistakes over and over again. Boob and knucklehead just sprang to mind first.

And so there are many descriptive terms for the collective known as the City of Fullerton, an entity that just can’t seem to help itself avoid the avoidable.

Quick, get clear of the impending collapse…

Exhibit A for the prosecution: the idiotic “boutique” hotel at the Transportation Center, brainchild of the corrupt and fortunately departed Councilcreature-for-hire, Jennifer Fitzgerald.

FFFF has followed the 5 years-long trajectory of this nonsense as it has metastasized into a giant tail-wagging-the-dog embarrassment that leaves a sensible person almost speechless. As the remote plausibility of a hotel brought forward, unsolicited, by an unfunded “developer,” Westpark, became obvious to even the densest observer, a new consortium including TA Partners proposed another prison block apartment attached to the hotel.

In use, apparently…

In December 2022 there was still no concrete plan, just promises of this and that. But time was running out for people in City Hall who are addicted to this deal. See, it involved the disposal of public property that had been developed as parking for Metrolink riders; this meant declaring it “surplus” despite its obvious utility, and starting in 2023 the State of California was requiring surplus land be offered up to the low-income housing cartel. What to do?

Get rid of the property ASAP was the City’s solution, before the end of 2022 – even though there was no final plan or entitlements in place. There was no approved site plan and project density details to hold to the sale – either by the City or by the “developer.” The development agreement protected the City’s interest in the property – up to a point, but created an entanglement of interests during and after escrow and incrementally pulled the City into a potential morass of unintended consequences.

Oops.

If I knew what I was talking about this wouldn’t be Fullerton!

So the sales agreement and the deeding of the City property was approved before the end of the year. Fred Jung and Nick Dunlap wisely opposed this fiasco, but were in the minority. FFFF just posted the story of Shana Charles’s dumbass rationale for approving, and of course Ahmad Zahra was all for this because he probably believed he could squeeze some cash out of TA Partner’s Johnny Lu along the way. The third vote? It came from none other than Bruce Whitaker, who seems mostly just confused, and even less inclined to show diligent energy that ever.

I swear to pay attention from now on, but I could be wrong…

All along, Whitaker seems to have bought into the nonsense that this property was legitimately surplus, despite its obvious utility to the people of Fullerton. Not wanting subsidized housing, he was willing to go along with the stupid hotel concept; but even he should have balked when the mess ran of the highchair and spilled on the floor. But he didn’t, doubling down on his own incompetence and in the end getting what he didn’t want in the first place.

So the sale went though, followed in the next few months by land use discretionary review and approval instead of all this happening at the same time which is the way it should have happened. Any problematic results of this mismatch may become apparent soon.

The finalized proposal came before the Fullerton Planning Commission last week. I’ll be describing that in the next post.