Economic Development 101

In my last post I introduced the topic of Fullerton’s latest foray into “Economic Development” a term that really refers to the idea that a city can generate more sales tax revenue through its ministerial efforts so that it can hire more people and pay them more money.

This is the old California Redevelopment mantra that was used by cities across California for decades to hand out land, cash, and favors to chosen developers and retailers. Nowadays, there’s really only land to give away as we saw in Fullerton with the abysmal “Tracks at the Tracks” project that ironically handed away millions of dollars in potential up-front revenue that might have balanced our budget in 2025 all by itself.

I thought I would spend some time reviewing the Kosmont Companies report and watching our esteemed City Council’s review of said “Retail Market Strategy.” To say that I was underwhelmed would be an understatement.

The report is 90 pages long. 95% of it is data mined from some source which tells us nothing an ordinary person couldn’t fathom all by himself – like on-line shopping is a big problem – and which seems almost disconnected from the recommendations on pages 11-13.

I have to wonder about the source of all this tsunami of numbers and even their validity. One side-by-side pair of graphs was particularly dubious.

Huh?

Somehow triple net rents in Fullerton spiked, even as vacancies soared. Meanwhile in the broader areas of Orange County, including neighboring towns, vacancies somehow dropped during the worst of the Covid pandemic. And in Fullerton the graph shows, rents stabilized, even dipped in ’21-’22 even though demand apparently skyrocketed. I’m not an economist but this sure looks like pure nonsenso-data to me.

Anyway, the recommendations are just a boilerplate laundry list of ways to spend money, and a lot of it, to hopefully make money. I’m sure Kosmont uses them over and over again in every “study” they perform. Here they are. Enjoy:

What a load of consultant bullshit-jargon leading to the inevitable conclusion that Fullerton needs to hire more people in order to pay for the ones we already have. If we look at these recommendation we see the old Redevelopment lingo writ anew – collaborations, outreach, improvement districts, façade improvements, “thematic” sidewalks, way-finding, public art. Don’t forget enhanced customer service! And of course collecting data (probably through the kindly and expensive offices of Kosmont itself). But is there a single mention of a public accountability program by which the people of Fullerton and their elected representatives can determine if money blown on this nonsense even paid for itself? Nuh-uh.

And of course Kosmont’s “study” diplomatically avoided mentioning Downtown Fullerton’s million dollar budgetary sinkhole, supporting the myth that it is an asset instead of a decades-old liability. Maybe they think thematic sidewalks will clean up the clientele.

The Council’s reaction to this consulto-gibberish was utterly predictable. Ahmad Zahra, who must have peed himself in excitement over Action Item 12 was completely on board and vocally supported the need to increase “staffing levels” to accomplish this laundry list of pabulum. He believes that art tourism, and all of Fullerton’s museums can pave the way to success. His accomplice in stupidity, Shana Charles was all giddy, too, and pointed out the inescapable link between economic development and Fullerton’s “urban forest” whatever that may mean.

Silence is golden…

Bruce Whitaker mentioned that he was a follower of somebody named Jane Jacobs and supported organic economic development. A wise position, but one completely at odds with his recent approval of the idiotic City-driven apartment/hotel boondoggle that flushed millions and millions right down the municipal commode.

In the end nothing specific was decided and the Council moved on, no one having bothered to find out, presumably because they didn’t care, what this 90 page report cost the taxpayers of Fullerton.

The Mantra of Economic Development

No news is good news…

A Friend just forwarded an article in the Yellowing Fullerton Observer about the City’s latest foray into something called economic development – an effort to create more tax revenue, somewhere, somehow, sometime. The good folk in City Hall are alarmed at the looming budget deficit they forecast in the next few years. And they know full well that another attempt at a sales tax like the ill-fated Measure S promoted by Ahmad Zahra and Jesus Quirk-Silva would be a shaky proposition.

According to the Observer the City hired an entity called Kosmont Companies to assay Fullerton’s future and determine where tax generating opportunities may lay. At the June 20th meeting of the City Council a report by Kosmont was submitted for general perusal.

Exhausting all options…

I note that Kosmont Companies is an operation whose sole raison d’etre these days is to work for Redevelopment Successor agencies and municipalities trying to gin up revenue to support the bureaucratic establishment. According to the staff report Kosmont was employed by “the City” in February 2023; since no agenda report exists for this contract, it must have been executed out of the public eye by our esteemed City Manager, Eric Levitt. I’ll address the report itself and the Council’s reaction in another post.

I often wonder why anybody thinks local government have any business promoting these types of endeavors. Government employees know little about business operations, nothing about the concept enterprise; they know defined benefit pensions, their union agreements and petty, make-work bureaucratic stuff. These same chuckleheads just up-zoned and entitled a massive apartment project on land they sold to the developer for 10% of its new value. As far as the unknown amount paid to the “consultant” I wonder if even that expense will be recouped by their own work product.

Just as bad, the economic development concept is created and run, for and by, the same people who stand to benefit from it – it it were to even work at all. And of course there is never any accountability for public resources expended in the pursuit of this talisman.

Chaffee Screws Pooch

There are two kinds of lame-duck, termed out politicians. There are those who no longer care to appease the rubes who elected them and let their real character come out. Then there are those who maintain the same fat-headed, dissimulating personas that they always carried about with them.

An especially small hat was located…

It is rare indeed to find the sort of swine we have in County Supervisor Doug Chaffee – an individual who has left a remarkable slime trail in his wake. Chaffee seems intent on combining the two elements described above, and that ain’t easy.

But no pot of gold…

A week or so ago Chaffee voted with his colleagues Don Wagner and Andrew Do to oppose hoisting the Rainbow Flag at the County, the flag a symbol for all non-hetero folks to feel some sort of pride in whatever sexual orientation they have discovered for themselves. This has been a sticking point for the new right for a long time as they fight a rear-guard action in the culture war they have already lost.

Apparently, Supervisor Wagner got his political start as a Bible-thumping school district member. And Supervisor Do is just another sleazy mid-County scumbag trying to hang on to what’s left of the Viet-Republican coalition. So why did Chaffee side with this pair of trogs against the two Democrats on the Board of Supervisors? Same old garbage peddled by his intellectual forbearers: if we let them do it we’ll have to let the Neo-Nazis raise the swastika over public buildings.

I’m sort of sick and tired of this sort of disingenuousness on the part of our “honorable” politicians. But I got sick of the Chaffee crime family a long time ago and like many other obnoxious problems, we’re just stuck with this on for another two and a half years.

The Associated Road War of Attrition

Reinforcements are on the way…

So characterized by Councilman Nick Dunlap is the no-longer ongoing attempt by City staff and liberal virtue signalers who were working hard to put Associated Road on a “diet.”

Mr. Dunlap seems well aware of how things that the bureaucrats want never seem to expire, and that meeting upon meeting are sometimes used to thin the herd of opposition until just about everybody has given up.

This seems to be what was going on with the rather unnecessary attempt to modify Associated by adding parking as a buffer for bike riders, along with the elimination of two vehicular traffic lanes. Meeting upon meeting were held to shore up support for the plan to get rid of two traffic lanes on Associated Road.

Here’s what happened at the council meeting study session on Tuesday. The City’s traffic guy announced that he had given up on the proposed new on-street parking, used to create a Class IV bikeway. Even staff could see the handwriting on the wall. The few citizens who were present (see herd thinning, above) still commented on the parking, but also remarked on the need for 4 traffic lanes. Those in favor of the project were all about big picture ideas that, in the context of this short stretch of road, seem sort of comical.

Dunlap says no…

When the council finally started chatting about the project, Nick Dunlap almost immediately made a motion to leave the damn thing the way it is – tabling the item for good. Shana Charles fought a losing rear-guard action as she tried to waste more time and effort on this scheme. Bruce Whitaker wisely pointed out that the total daily traffic counts don’t reflect peak hour traffic when having four lanes might actually be useful. Finally, with the dubious assistance of lawyer Dick Jones of the I Can’t Believe It’s a Law Firm, the council finally just gave staff the direction to proceed with the planned repaving and to reproduce the existing lane and bikeway striping. And so without a decisive action by the City Council, the Associated plan in social engineering sputtered to an unceremonious demise, Whitaker, Dunlap and Jung seeming to agree to a collective adios.

They never go willingly…

Will this plan really die, despite the seeming death blow? This is Fullerton, where no idea, no matter how bad, really dies if staff really wants it to live.

OCPA Losing Juice. Fast.

The other night I was watching our esteemed councilcreatures meet so I could check out the Associated Road conversation and I stuck around for the discussion on whether to hire a “consultant” to figure out the cost for Fullerton to ditch the Orange County Power Agency.

Green and electric…

The OCPA was conceived as a way to provide “green energy” alternative electricity to people in orange County who wanted it. The idea was the brainchild of the City of Irvine who paid for the start up costs. Eventually Fullerton, Buena Park, Huntington Beach and the County signed on.

Don’t Ask Don’t Tell!

From the get go critics attacked the new agency for secrecy and incompetence and failure to deliver a competitive price. It was up to individuals who wanted out, to opt out, a backhanded way to get, and keep customers. Not a good start.

Flash forward to today.

The County has pulled out of the OCPA, Irvine has been talking about it, too. Last Tuesday the Huntington Beach council voted to do the same; on the very same night the Fullerton City, debated the merits of hiring a consultant to figure out what the financial ramifications might be for us get out, too, before Fullerton is left holding the proverbial bag.

I have no idea why City Hall doesn’t already know the consequences of leaving the agency and why the exact formula wasn’t know before we got into it. Anyhow, the discussion wasn’t all that clear.

Show me the money…

Ahmad Zahra, one of the people who voted for Fullerton to join this agency wasn’t there to opine on it. Bruce Whitaker and Nick Dunlap both expressed reservations about the whole deal, but went along with Mayor Jung’s suggestion of having the City Manager ask the agency to tell them what it would cost to bolt, instead of hiring a consultant to do it. That makes sense of course, but begs the question of why this wasn’t done a long, long time ago. Like on Day One.

Cost analysis is hard…

Shana Charles who comically described herself as a “cost analyst” was pushing hard to waste money hiring somebody to pry the information, somehow, out of the OCPA – no doubt a way to embarrass Jung who is now happens to be the Chair of the OCPA. Her motion died a very slow death.

So where will this all lead? The OCPA claims to have reformed itself, but has provided zero evidence to show it has. The board got rid of the first problematic CEO even as they showered him with praise. As far as I can see this shows that nobody there is serious about anything.

Getting out of OCPA may be expensive and may get more so as members drop out; nobody seems to know, and if they do, they ain’t a-talkin.’ And that’s not only embarrassing, it’s a dereliction of duty on the part of the people who got Fullerton into this mess.

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.

The Associated Road Saga. An Unnecessary Conflict

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

Yesterday I posted a letter from the Gingerwood HOA claiming that District 3 councilperson Shana Charles lied at a public workshop about having consulted them about the proposed re-alignments on Associated Road that are being proposed by Fullerton’s Engineering Department. That’s a pretty bad look for a novice politician.

So now, Friends, let’s explore what’s being proposed. It’s one of those ankle bone-connected-to-the leg-bone kind of things.

First, the City is proposing a sewer and water line improvements in Associated Road between Bastanchury and Imperial. When this is complete, our engineers reckon, it would be an excellent time to repave the street. And then, why not reconfigure the roadway and reduce the lanes from four to two, and add street parking that will act as a physical barrier for a “Class IV” bikeway. Here’s an example of what it would look like, courtesy of Caltrans:

They did what, now?

The City reasons that the reconfiguration is justified because the traffic “warrants” are low enough to re-designate this stretch of Associated Road to a mere “local collector” in traffic engineering terms.

The folks who live in the various condo projects along Associated, like Gingerwood, are up in arms about this, and who can blame them? They reason, among other things, that turning out into the one lane of traffic would become more hazardous as their lines of sight will be blocked by parked cars. They will also have to slow way down, in traffic, to turn into their entries. Then there’s the issue of strangers parking in their neighborhoods – overflow from nearby apartment inhabitants and visitors to Craig Park.

This entire situation smacks of social engineering on a small scale. I have no idea how many bikers use the existing bike path and if the new configuration is even safer using parked cars as a barrier. But this seems like an unnecessary battle for City Hall to fight against its citizens.

I can’t think of a convincing reason not to restripe the street the way it is and move on.

Anyhow, the discussion of this matter is on the City Council this week (Item #14) where we can expect a lively confrontation between the irate neighbors and the people, like Shana Charles, who are behind this.

Shana Charles. Liar?

Yes, apparently so, at least according to the Gingerwood Homeowners Association.

It’s only a lie if you get caught…

The topic of this alleged prevarication is the proposed reconfiguration of Associated Road that would remove a lane of auto traffic and permit on-street parking. I’ll be writing about the details of this “project” in a bit.

This proposal seems to have germinated within the walls of City Hall and was presented to affected parties along the road. One of them is the Gingerwood community HOA that wasn’t real pleased with comments made by their councilmember, Shana Charles.

Uh, oh. It appears the good doctor has been telling stories in order to pedal this project past wary homeowners who don’t want cars blocking their sight lines when they emerge onto the fast traffic of Associated.

Lying to constituents to push a project you like but they don’t suggests a moral and ethical vacuum.

Track the Tracks. They Said What?

I’ve been relating the newest bit of Fullerton nonsense lately, to wit: the unfolding, bureaucrat driven, unfolding the disaster now know by the funny name The Tracks at Fullerton Station.

So far, we’ve found out that the 141 unit density of the apartment half of this hermaphroditic monster was based on the entire site size, despite the fact that that the “boutique” hotel, all 118 units, sits majestically on the other half. In essence, the Transportation Center Specific Plan limit of 60 units an acre – which is already ungodly dense – has been multiplied by two-and-a-half times, and the environmental documents that have already been approved by the City Council neglect to address this incompatibility with existing governmental strictures.

But it gets even worse.

It’s axiomatic that government minions will invariably cough up “solutions” to non-existent problems. It’s called job security, and the results, as these pages have amply demonstrated over the years, are never subjected to the embarrassment of scrutiny and accountability. This concept is not different.

At the recent Planning Commission hearing we learned that the project in question involves the complete remodel of the existing parking area just north of the Santa Fe Depot, south of Santa Fe Avenue. This further elimination of parking is being proposed to accommodate a brand new bust lane and stop. Why? No intelligent reason was forthcoming. Here’s the site plan:

Because the current bus stop is so far away…

The existing OCTA bus stops and canopies are only a couple hundred feet away. Is this deemed too far for the scant few travelers who use both bus and train? Of course not. Obviously some “transit” dreamers are hard at work, making work – for themselves.

And now notice at the right of the site plan the proposed hotel juts into the existing Pomona Avenue right-of-way. This will require an abandonment of part of a public street which would require an official abandonment. This is being done to provide outdoor eating for the proposed ground floor café. In order to provide an alternative, our thoughtful staff floated the idea of non-permanent elements in the same area, only requiring the issuance of an encroachment permit. Here’s the architect’s vision looking south along Pomona Avenue:

Aw, Hell, just give it to ’em.

This wet, hot mess was all approved by the five gourds sitting on the Planning Commission dais. Soon it will make its way to the City Council. Will it pass, as the sale of the property did in December? Will the three who voted to virtually give away this useful public land – Whitaker, Charles and Zahra – vote to double down on their foolishness and approve the monstrosity, the unnecessary bus stop and the abandonment?

Let a smile be your umbrella…

My educated guess is they will do it cheerfully.