(January 2, 2009) -- Councilwoman Gerrie Schipske, who represents the 5th Council district in which LB Airport is located, has issued a following statement following the agendizing by city management of a Jan. 6 "closed session" Council item for "a conference with the City's real property negotiator [city manager Pat West] regarding LB Airport -- with "negotiating parties" listed as "City of Long Beach and Barclays Capital; Citi Group; Goldman Sachs; JP Morgan; Merrill Lynch; Morgan Stanley; Fieldman Rolapp; Gardner Underwood; and Public Financial Management" -- to discuss "Terms of Lease of Acquisition" listed as "under negotiation."
The City Charter clearly states that only the City Council has the authority to direct the City Manager and so I would like to know under what authority the City Manager has contacted and discussed with financial investors, such as Goldman-Sachs, CitiGroup, and JP Morgan the potential sale or lease of the Long Beach Municipal Airport?
With budget deficits looming, the idea to sell city assets -- an asset by the way which was paid for by the residents of this city -- is focusing on the wrong solution. The only discussion this City Council should be having right now is how we plan to live within our means and what steps we will take to reduce spending.
The disposal of city assets is a decision that must be made by the city council in public, not behind closed doors.
Moreover, a decision of this magnitude should have the approval of the voters because of the consequences this action will bring such as the lack of local control over the amount of flights. The financial investment community won't be interested in a noise ordinance after purchasing our airport if it keeps them from making more money on their investment.
What happens when the City can't make a lease payment? We lose the airport. What if the investors of Goldman-Sachs decide to sell the Long Beach Airport? What about the extensive gas and oil reserves under the airport?
The City of Long Beach just lost $20 million because we relied upon financial investors. The financial community, which just had to be bailed out because of its mortgage schemes has now found another sucker -- local government...
We need to send a message that Long Beach is not for sale. The Council has a fiduciary responsibility that goes far beyond our limited terms in office, to protect the assets of the City. Once we sell the airport, we will never get it back and we will expose our residents to the expediencies of corporate profit instead of the exercise of local control.
