Home > Uncategorized > CA “clawback” of $2 million from Arcata redevelopment funds

CA “clawback” of $2 million from Arcata redevelopment funds


Let’s do some overseein’

The story is in the Arcata Eye: http://www.arcataeye.com/2012/12/arcata-ordered-to-pay-2-4-million-by-friday-december-20-2012/comment-page-1/

The Eye was also copied on a letter from architect Kash Boodjeh, who resigned from Arcata’s redevelopment “Oversight Board” after his dismay at what he saw at his first meeting: http://www.arcataeye.com/2012/12/kash-boodjeh-oversight-board-creating-alternate-realities-december-20-2012/

From Boodjeh’s letter, as presented in The Eye:

…The Counsel for the successor agency in that meeting went on supporting the staff practically scaring all members of the board into action approving resolutions that were neither totally clear or complete, against the warnings of the county auditor who made a presentation that day. I understood the oversight board to be an instrument of the state and found the counsel’s engagement beyond the explanations of the rules of conduct to be out of order.There were no follow up meetings for 7 weeks.

As an Architect, I am well aware of the abuses of RDAs, specially in larger cities. Our community is clean, I will be one of the first people in line defending any accusations to the contrary.

However our council, despite being warned to act as if RDA did not exist back in winter of 2011, has gone ahead and spent money it never had…

  1. December 22, 2012 at 9:32 am

    So, wouldn’t that be misappropriation of funds, a felony?

  2. SNaFU
    December 22, 2012 at 11:24 am

    Nothing more than the “big crooks” bullying the “smaller crooks” over a shell game from a tainted cookie jar.

  3. Anonymous
    December 22, 2012 at 2:37 pm

    at least Mitch is calling it a “billing dispute” like the journal. then you have the genius mayor quoted as saying they knew what they were doing was a risk. to me, that means they knew they were “transferring money without the legal basis to do so”. it sounds so nice when you put it like that.

  4. Anonymous
    December 22, 2012 at 2:38 pm

    correction: mitch is NOT calling it a billing dispute.

  5. Tax Payer
    December 22, 2012 at 3:08 pm

    As long as funds are misappropriated for groovy projects, no problem, send me the bill. What other ¨risks¨ could Shane been speaking other than someone calling them on their scam?

  6. Ogden Nash, Channelled
    December 22, 2012 at 3:37 pm

    “Nothing more than the “big crooks” bullying the “smaller crooks” over a shell game from a tainted cookie jar.”

    Big crooks have little crooks
    upon their backs to bite ’em.
    And little crooks have lesser crooks,
    And so on ad infinitem.

  7. December 22, 2012 at 3:50 pm

    sandpiper park used to have character ,I think the new development is ugly.

  8. Tax Payer
    December 22, 2012 at 4:31 pm

    Pretty, ugly? I don´t care. Scam the Tax Payers and send me the bill.

  9. Union pensioner
    December 22, 2012 at 8:32 pm

    It’s being done for the kids. That’s a comment that works for everything. We also have a saying and underlying principle we believe in, “If you don’t like it then leave! You are the type of people who are causing all the problems.” I’m taking my pension to Florida to play golf with the tiger.

  10. Fore!
    December 23, 2012 at 5:48 am

    Yeah, we be rippin you off, don´t like it? Go play golf with some Wall Street bums in Florida! They ripped you off too. Thanks for the Bailout Suckers!!!!!

  11. Anony
    December 24, 2012 at 8:59 am

    That is what happens when you put the Democrats in control of everything in state government. This is what you wanted. Are you happy now?

  12. Jarvis Gann
    December 24, 2012 at 11:13 am

    this is what happens, long term, when you put republicans in charge of taxes and revenues. Are you happy now?

  13. Just Watchin
    December 24, 2012 at 11:36 am

    Jarvis Gann :this is what happens, long term, when you put republicans in charge of taxes and revenues. Are you happy now?

    Please clarify…….were these Republicans voted into the positions that control taxes and revenues? If so…..how does that happen in an area that is dominated by democrats?

  14. I´m Laughing
    December 24, 2012 at 2:12 pm

    No questions!

  15. Anonymous
    December 24, 2012 at 2:42 pm

    In all the time the democrats have controlled ca politics, they have not had any time to fix something the republicans did….what’s it been now, 40 years of democrat controlled legislature? Try again.

  16. I´m only asking
    December 24, 2012 at 3:02 pm

    Jarvis Gann 11:13 Regarding ¨this is what happens, long term, when you put republicans in charge of taxes and revenues¨. The comment previous to your´s specified ¨state¨ politics. The California Legislature has been controlled by the Democratic Party since 1970 except during 1995 and 1996 and both of California’s seats in the U.S. Senate have been under Democratic control since 1992. Sincerely, how in the world can people blame the Republicans for the mess California is in? I ask this with trepidation as lately questions are often not well received here at the HH.

  17. Anonymous
    December 24, 2012 at 4:05 pm

    You’re asking the wrong people your question. Half of the Democratis in Humboldt are really Republicans who are smart enough to change parties and the other half of the Dems are suffering from battered spouse syndrome. They know the current system is abusive but they are too afraid to change it.

  18. Anonymous
    December 24, 2012 at 4:33 pm

    You will find a lot of Democrats in Humboldt who support this but try to get the HDCC to endorse it. That’s the problem

    FDR’s Economic Bill of Rights January 11, 1944

  19. I´m serious
    December 24, 2012 at 4:53 pm

    Thanks for giving me an honest and civil answer. I appreciate and agree with yor assessment. There is apparently a massive disconnect between the regular folks and the Central Committee. Nevermind Sacramento and Washington, they are about as close to my life as The Planet Formerly Known As Pluto.

  20. Just Watchin
    December 24, 2012 at 4:53 pm

    I’ll ask it again……..how do Republicans get elected to any office when Humboldt is overwhelmingly democrat voters ?. Could it be that democrats vote Republicans into office so that they have someone to blame if things go wrong?

  21. Steve
    December 24, 2012 at 4:58 pm

    Interesting that nobody has called attention to the question of why Kash felt called upon to rat out the City of Arcata to DoF. I mean, its fine if DoF decides it must claw back redev money already spent by the City of Arcata, and I can certainly understand Kash being disappointed that the Oversight Board was acting more as an advocate, but I’m not really sure how I feel about Kash deciding to nudge the claw-back process along. Frankly I see the Sandpiper as a very worthwhile low-income housing project for Arcata, and I’m not really convinced that the State of CA will find something better to spend the money on.

  22. I´m serious
    December 24, 2012 at 5:02 pm

    Not sure, one of the factors could be the massive disconnect between the Central Committee and regular folks who are registered Democratic. Just as there is a disconnect between the Polyticians of any party in Sacramento and anyone who lives on my street. Then again, not sure. Just my best assessment. The folks on my street don´t seem to vote the other party just to blame the other party when things go sour. But when reading some of the comments on some blogs, the Blame Game is alive and well in America.

  23. Anonymous
    December 24, 2012 at 5:09 pm

    The question is not whether or not Sandpiper is a worthy project. The question is was it legal.

    Apparently not.

    The next question is, did the city council know it was illegal and went ahead anyway?

    The third question is, was there any conflict of interest involved in these deals?

    There might be more.

  24. I´m serious
    December 24, 2012 at 5:21 pm

    This is so cool, people are asking questions and conversing. Shane said he ¨knew there were risks¨. Other than an asteroid or tsunami, the only risk I can see is the one Kash identified. I sat on a City committee in Arcata and I can tell you it was a surreal experience. RE: Conflict of Interest, Kash thinks there was one. We´ll see what the California Attorney General thinks, that is if a Democratic AG in Sacramento is willing to investigate a Democratic stronghold. Remember, Shane said we need to cobble together a Power Team to head off the Investigators at the pass. Not a quote, but that´s the essence.

  25. Anonymous
    December 24, 2012 at 5:26 pm

    The problem is downstate where huge chunks of money for Gov Browns plan will be recovered and where the redevelopment scams have been massive. Poor little Arcata whether right or wrong will be a Democratc Party sacrifice zone. In the big state ;picture they are a flea on the tail of the dog. If they let Arcata off the hook they will have to let the others off the hook.

    It ain’t happening so the mayor better go to plan B.

  26. I´m serious
    December 24, 2012 at 5:33 pm

    From the Eye:
    ¨Brinton said he was contacting Assemblymember Wes Chesbro to enlist his support. He also noted that former Assemblymember, Arcata Mayor and City Manager Dan Hauser is on ROP’s board of directors.

    The DOF, Brinton suggested, ruled by executive fiat, and might be able to reverse its decison if properly persuaded.

    “They could change their mind,” he said. “Hopefully we can cobble together a little group of power players and see what we can do in Sacramento.”

  27. Anonymous
    December 24, 2012 at 7:29 pm

    Hey don’t worry, Arcata gonna make so much from their shiny new grow tax that they can pay off 2 mil in no time.

  28. Anonymous
    December 24, 2012 at 8:07 pm

    contact wes, lol, he’s the scum bag that started it all in arcata, he was the budget chairman in state, all this phony bs is his brain child, the numb numbs like stillman, wooley, steward,fulkerson,lovelace,brinton are swine slop’n at the trough, wes is the swine master, any wonder ca is in the crapper, and yes shane what ever you put together in sac will be cobbled together, lol

  29. Anonymous
    December 24, 2012 at 8:37 pm

    Anonymous :
    You’re asking the wrong people your question. Half of the Democratis in Humboldt are really Republicans who are smart enough to change parties and the other half of the Dems are suffering from battered spouse syndrome. They know the current system is abusive but they are too afraid to change it.

    That half you claim were smart enough to change parties are not smart at all. They are cowards who lack the strength of convictions to stand up for principles. It is terrible that half the people in this country are so stupid as to believe the Democrat’s propaganda and message of hate. But what is worse is to know they are wrong but pretend & join their party anyway just to get ahead in the world.

  30. I´m serious
    December 25, 2012 at 5:53 am

    JW 4:53 You asked a good and my answer would not have survived review by a smart 5th grader. Let´s break it down. Arcata is a gimmie for the Dems as Fortuna is a gimmie for the Republicans. Eureka is the case in point: more registered Dems but the Reps keep winning. Could it be 1. The Dem Central Committee is clearly out of touch with Elm Street and keeps advancing nice but elitist candidates, i.e. Kuhnel who lives in a mansion and LaValle another well-heeled Eurekan. 2. The Republicans know they are the ¨minority¨ so they work real hard to advance ¨regular folk¨ to the ballot, i.e. a waitress from a Steak House, a manager from a hotel, and some guy who like baseball and is a ¨poop whisperer¨. 3. What I call the ¨blurred lines of politics¨, How else can one account for Mitt being Govenor of one of the most liberal states in the Union, MA? We´ve got ¨liberal¨ Republicans and Blue Dog Democrats out there. 4. Party Unity. The Republicans are well organized and fairly unified. Who was it who said ¨show me 10 Democrats and I´ll show you 12 factions of the Democratic Party´?¨
    I am sure this is not the complete answer but it is better than the answer I came up with yesterday. Stay ¨provacative¨ and ¨controversial¨ JW, but let us both try to be more civil and not nasty. It just stirs up the haters.

  31. Anonymous
    December 25, 2012 at 6:25 am

    Addressing the Eureka City Council last week, Tyson made clear that redevelopment’s demise would impact far more than projects and first-time homebuyer programs. He said many city employees’ positions — including his — are partially funded through redevelopment revenue. If — or when — that revenue disappears, Tyson said, the city council would face a sizeable hit to its general fund.

    ”Just about every facet of your government is funded through redevelopment,” Tyson said. “There is a significant ripple effect to our budget that this will have.”

  32. I´m serious
    December 25, 2012 at 6:33 am

    WTF? ¨Redevelopmet Funds¨ pays staff salaries? Why do some people think the Redeveloment Agency is just another Government scam?

  33. Anonymous
    December 25, 2012 at 6:43 am

    Arcata could print up some nice IOUs and use them to pay their employees and bills with the IOUs. As long as the COOP and all the Plaza merchants take them in good faith, oh and the banks will have to be on board too, you will be gold.

    You could call it “community currency.”

    This will work in Eureka too when the redevelopment SHTF.

  34. Anonymous
    December 25, 2012 at 6:54 am

    Any bets on Tysons 2012 compensation? I bet when he cashes out all his vacation and sick day time it will be over 300K. What do you think?

  35. I´m serious
    December 25, 2012 at 8:46 am

    300K? I doubt our Government will consider giving the public´s money to public ¨servants¨ to be public information. Good luck getting those numbers.

  36. Anonymous
    December 25, 2012 at 9:20 am

    The Times-Standard could file a FOI and get that compensation info for us.

    Let’s all hold our breaths.

  37. Anonymous
    December 25, 2012 at 9:49 am

    Can anyone explain to me how the Sandpiper affordable housing works? It looks like they cost about $100,000 to construct and they are selling them for $60,000? I understand that these might not be correct figures, if so what are the correct figures.

    We need more real information.

  38. Anonymous
    December 25, 2012 at 10:04 am

    Rent-to-own mobile home park to open soon in Arcata; ‘Sandpiper’ to offer 16 low-income homes
    Grant Scott-Goforth/The Times-Standardtimes-standard.com/
    Created: 08/29/2012 02:10:24 AM PDT

    Sandpiper Mobile Home Park is in the final stage of a years-long rebuilding project, with residents expected to be able to move in by Oct. 1.

    The park will offer homes for low-income people that are seeking to buy in Arcata.

    Maurice Priest, president of Resident Owned Parks, a nonprofit that owns Sandpiper, plans to transfer ownership of the park to its residents once the loans needed to build the park are repaid.

    He said for 50 years of Sandpiper’s existence, it was a mix of travel trailers and other semi-permanent homes, “none of which were particularly attractive in the community.”

    In 2006, the owners of Sandpiper approached ROP with the idea of selling them the park. They were ready to retire and had talked to the residents about ROP.

    ”It was kind of an unusual start,” Priest said, adding that most park owners are businesspeople looking to maximize their profits from any sale.

    ROP purchased the site but ran into delays while seeking approval for the project from the California Coastal Commission.

    Vacancies in the Arcata Mobile Home Park, which is also owned by ROP, were offered to residents of Sandpiper who planned to return after it was rebuilt.

    Arcata City Councilwoman Alex Stillman said that some residents were frustrated by years of delays in the rebuilding process.

    ”That’s just sort of how it is when you have to go through the different regulatory agencies,” Stillman said.

    The city first approved the project six years ago, Stillman said, and she was happy to see it near completion.
    With loans from the City of Arcata, ROP is putting 16 manufactured homes and an apartment building on the site.

    ”Housing in Arcata is expensive and there’s not enough of it,” Priest said. New homes at Sandpiper will cost $59,900, plus utilities and rent. The rental cost of park spaces will be regulated by the city.

    ”It just can’t get any better than that,” Priest said.

    According to the city’s home ownership program guide, qualified low-income applicants are based on income limits published by the California Department of Housing and Community Development each year. Under current guidelines, a one-person household would have to make $32,440 or less per year to qualify for the city homeowner’s program.

    Community Development Director Larry Oetker said Sandpiper Mobile Home Park is another part of the city’s ongoing first-time homebuyer program that helps low-income people get affordable mortgages on homes.

    Oetker said people will be able to get on an ownership path for approximately $550 per month.

    Oetker said the city loaned ROP $2.3 million from funds dedicated to housing. Resident rents will repay loans and when the mortgages are paid off, ROP plans to transfer the debt-free title to a homeowners association.

    Stillman expects Sandpiper will fill quickly.

    ”Arcata has really high prices on their housing,” she said.

    In addition, she said it’s a community-minded development in a good location, between the Arcata Marsh and the Plaza.

    ”I think it’s going to be a wonderful addition,” Stillman said.

    Anyone interested in applying for tenancy at Sandpiper Mobile Home Park can contact Pamela Thomas at Resident Owned Parks at 800-655-6600 or via email at ropadministration@att.net.

  39. I´m serious
    December 25, 2012 at 10:05 am

    If the Government didn´t get the money under dubious circumstances and if they weren´t selling them below cost, it wouldn´t be a Government Program. Let´s be honest here: The Private sector would have got the money under the regular ´ol dubious circumstances, government susidies coupled with paying their employees as low as possible, and then they´d be selling them for as much as they could gouge their neighbors. Kinda like a pyramid con with a twist. There´s no middle ground: rent keeps going up, gas keeps going up, utilities keep going up, health care costs keep going up, the deductions on my paycheck just went up, the deficit keeps going up, the City Manager´s pay keeps going up, the Billionaire Banksters got a sweet trillion dollar Bailout, and the Middle Class will pay for it all. Real enough?

  40. Anonymous
    December 25, 2012 at 10:13 am
  41. I´m serious
    December 25, 2012 at 10:25 am

    Based on the Arcata model, I doubt this a truly ¨private sector business¨. The whole ¨Redevelopment Agency¨ trough has spawned lots of ¨non-profit¨ companies. There´s a revolving door between government and business. Big Government has become Big Business and Big Profits. Most truly independent private businesses wouldn´t touch this stuff with a 10 foot pole. Alex Stillman is quoted in the article saying the permits were approved 6 years ago. I have family who work in Construction, they wouldn´t get near this Mount Everest of Red Tape, because there are businesses which have been created just to wade through the trough of red tape at City Hall. Of course, they aren´t going to announce on their website that they specialize in dealing with wading through the trough, doesn´t look good in print.

  42. anonymous
    December 25, 2012 at 2:17 pm

    Sounds like the city screwed up big time and instead of accepting responsibility, are blaming the Department of Finance… FYI, Department of Finance works for Jerry Brown, a Democrat. How did Chesbro vote on the original legislation? Chesbro voted for it! All of the politicians are to blame… but watch them all run to avoid responsibility. The City Council, they took a “risk” with your public dollars for their pet development projects, and pet developers. Those are dollars that could have gone to fire services, schools and the sheriff. Arcata tax payers will be stuck footing the bill for the Councils huge mistake here. Is anyone paying attention? Will the mayor and these other people in positions of power be held responsible? If redevelopment is gone, when is the city going to downsize its staff that works that area – or are we going to see the same council that made the mistake take out the cost on the police department or line staff? Come one people, wake up! This is a BIG mistake here!

  43. Anonymous
    February 5, 2013 at 8:24 am

    This is an amazing story. The City officials are now guilty of conspiracy, misappropriation of funds and being bullies. Shout it out Kash. Louder so that the big guys in Sacto hear you.

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