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Your Tax Dollars At Waste, AGAIN!
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Council Member Beckham Attends League of California Cities
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Here’s an update for you from Monday’s City Council meeting. In the past we have discussed Mitigation Fees. That Blog has disappeared, so I’ll redefine. Mitigation Fees are the impact fees that the City collects on new construction to offset the cost of water, sewers, new roadways, etc.

 
Until recently under David James’ management, mitigation fees were NOT collected up front from the developer because there was some convoluted formula for calculating those fees based upon whether a retail space was going into a new development or a restaurant as each would have a different impact on the infrastructure.
 
Because these fees were not collected upfront from the developers and the developers were not disclosing these fees to their new tenants UNTIL AFTER the tenant had spent considerable money in tenant improvements, there have been three separate occasions where we as the City have made arrangements for the tenants to repay the City on a contract basis for these mitigation fees.
 
The two most recent instances were Que Pasa and Don Pericos. I argued during the council session that we, the City, were not a bank and the developers were pulling a fast one, to which Mr. Garrett agreed, and that we should not be loaning money even at 0% interest. Even the City Attorney agreed that he did not think the City should be in the business of loaning money. We wanted the developers to pay the fees and work out the situation with their tenants.
 
However, my esteemed colleagues, Mayor Grimes (at the time), Debra Hand, Phil Smith and Linda Vernon, in their infinite wisdom voted 4-1 against me to allow the tenants to repay the City at $3,200 per month over the next 3 years or roughly $115,000. NOW, Que Pasa has filed for Chapter 11 bankruptcy. The City is not listed as a creditor even though notice was given. That means the City most likely will never recoup these fees unless David James can come up with a solution.
 
Also, note, Don Pericos wants to renegotiate with the City because, expectedly, the $3,200 per month is eating into their operating margin. If you want to put a stop to this madness, please vote out Mayor Hand and Ed Grimes in November. Their ‘business usual’ attitude is wasting millions of dollars and with the State budget shortfalls that are looming we can’t afford Mayor Hand and Ed Grimes’ way of doing business any longer. Check out www.StanBeckham.com for more information.
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posted by packerfan on Wednesday, April 9, 2008 at 10:10 AM
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