Public's Money, Public's Business, Unbusinesslike Mayor/Council Response To Public

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Entering 2017 / Perspective

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(Jan. 4, 2017) -- LBREPORT.com has previously commented on what we consider taxpayer-unfriendly, unbusinesslike City Council conduct amounting to corporate welfare and croney capitalism downtown. We cite below behavior that happens to involve the uptown end of the city in North Long Beach. In our opinion, both raise the same troubling issues entering 2017: (1) what we consider unbusinesslike conduct by Long Beach City Councilmembers and the Mayor in handling taxpayer money (not unlike Council conduct in recklessly approving the costly and needless 2015 Civic Center transaction); and (2) dismissive and disrespectful treatment of taxpayers who raise businesslike questions and substantive policy issues about such actions.

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On December 6, 2016, city staff sought City Council approval to sell city-owned property (acquired from the vanished LB Redevelopment Agency) along on the western side of Atlantic Ave. at 61st St. to a corporate entity for $655,578. The agenda item was accompanied by this city staff memo which noted that "the fair market value of the property is $1.2 million, as determined by broker opinion of value."

But missing from city staff's agendizing memo was any mention of the highest bid received for the city-owned property.

Prior to the Council meeting, Long Beach taxpayer Laurie Angel emailed all Council offices, noting that the proposed sale price was 46% lower than the property's fair market value and said the buyer's proposed uses for the property (supported by city staff) were inconsistent with the area's redevelopment guidelines. Ms. Angel, the former chair of the North Long Beach Redevelopment Project Area Committee, backed up her postion by attaching a copy of the 2002 North Long Beach Strategic Guide for Redevelopment and emailed it to all Councilmembers. To view Ms. Angel's emailed correspondence (visible among online materials accompanying the agenda item), click here.

When the item reached the City Council, Vice Mayor Rex Richardson (made motion to approve the sale) spoke two sentences in support, followed by Councilwoman Stacy Mungo (seconded the motion) who spoke one sentence in support. Neither of them even bothered to acknowledge the issues raised by Ms. Angel's thoughtful correspondence.

Prior to the Council vote, retired Deputy City Attorney Jim McCabe came to the Council Chamber speakers' podium. Mr. McCabe noted the sizable disparity between the property's fair market value and city staff's recommended sale price, and pointed out that city staff's agendizing memo didn't mention the highest bid received for the property. Mr. McCabe then publicly challenged Councilmembers to make public the highest bid received for the property. .

Not one Councilmember asked city staff to disclose the highest bid received for the property. When Vice Mayor Richardson asked city staff to respond, a city staffer simply recited parts of city staff's agendizing memo which didn't disclose the highest bid received for the property.

Vice Mayor Richardson then launched into a defense of the proposed sale that didn't ask and didn't tell the highest bid received: and ended with a slap we believe was aimed at taxpayer McCabe: "I encourage you to ask some better questions":

[Vice Mayor Richardson:] What's probably most special about this project is that the city only owns one half of the block and the adjoining property owner has come forth and is willing to make deep, dramatic improvements creating a full city block of development. No other project do we have that type of leveraging in our redevleopment properties. Now we will have a full city block of development, signalized intersections, amenities that we simply do not have in North Long Beach, and I'm really excited about this project...There was community engagement and community meeting here, where the residents came to the table, talked about their highest and best use and needs for this project...I stand behind this wholeheartedly and I encourage you to ask some better questions.

As Mr. McCabe walked away from the speaker's podium without an answer, Mayor Garcia ignored his question called for the Council vote. It was 9-0 to approve the sale with no disclosure of the highest bid received. Those voting "yes" were Councilmembers Gonzalez, Pearce, Price, Supernaw, Mungo, Andrews, Uranga, Austin and Richardson.

Regardless of one's opinion of the new owner's development plans for the property, Mr. McCabe asked a perfectly fair businesslike question. He -- and taxpayers citywide -- deserved a businesslike answer...and not a Councilmember's verbal slap.

We think it's fair for taxpayers to recall actions like this the next time LB's Mayor and Councilmembers insist they're being fiscally prudent in failing to restore essential police and fire services for the public.

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