HomeMy WebLinkAbout10/31/2001 - STAFF REPORTS (2) Jim Jones
P. O. Box 8294
Palm Springs, CA 92263
Phone (760) 327-6801
Fax (760) 327-8274
Cell (760) 333-1747
General Counsel Luisa Menchaca
Fair Political Practices Commission
428 J street, Suite 620
Sacramento, CA 95814
Dear General Counsel Luisa Menchaca:
At the October 24, 2001 meeting of the Palm Springs City Council Mr. Steve
Payne appeared and read the public statement which I have enclosed. He concluded
by saying he had referred his charges to the FPPC and demanded that I recuse myself
from any future matter involving Mr. Payne, his partners or his business.
This is pure fiction and I believe Mr. Payne is motivated by the fact that the City
has a municipal election in two weeks. Although my term is not up, Mr. Payne is fearful
that persons with political beliefs like mine who question the giveaway of taxpayer
monies to developers without a good clear need will be elected. I think he is attempting
to intimidate me and create a cloud over me to influence the election. I know that the
FPPC process is often used this way to create election controversy. I request that the
FPPC investigate this matter as soon as possible and publish its conclusions as
speedily as possible.
I have not seen Mr. Payne's complaint to the FPPC but judging from his public
statement, there is much he has not told you. I have no financial interest in
Mr. Payne's project nor his business associates. In addition, I own no property and
have no business in any proximity to Mr. Payne's property. The nearest property I have
is over ''/: mile away. I know that the FPPC governs financial interests and since mine
are hot affected by Mr. Payne's project that should be the end of it. However since Mr.
Payne is attempting to smear my good name, I would like to tell you some other facts.
Mr. Payne has previously received almost $200,000 of assistance from the agency and
was asking for$200,000 more to expand his facility.
The present owner participation agreement did not require a public hearing. I
called Mr. Payne to obtain information and to find out what his need was for the money
since the staff report did not fully explain it. Mr. Payne told me he could do the project
without the public assistance. I told him that I had trouble supporting giving away
taxpayer money to an obviously successful developer who told me that he could built
his project without our help. I don't think my attempt to get information or my position on
public assistance is improper. Mr. Payne obviously feels that Council Members who do
not believe in public giveaways should be recused from considering his project.
Mr. Payne has now asked that his project be delayed so he can generate
information which obviously was not available when the project was first considered last `l.
week. If my questions had no merit, would he have asked for delay? However delay at
this point has not altered Mr. Payne's statement, repeated publicly, that he can build the
project without public assistance.
Mr. Payne's tactic is to cloud the issue by attacking me. I value my name and
would very much appreciate the FPPC's immediate and public rejection of this
complaint, which clearly has no substance, thus removing any influence Mr. Payne's
charges can have on our election. In addition, I want to know if you think a Council
Member who does not believe in the giveaway of taxpayer funds should be recused
from considering giveaways to developers, if you can please comment on that .
Finally I want to know if the Redevelopment Agency can give public assistance to
a developer who is also a Planning Commissioner under 1090 of the government code?
In addition Mr. Payne's architect Mr. Chris Mills who is a Candidate for the City Council,
was Chairman of the Planning Commission when the project was considered by the
Planning Commission, although Mr. Mills did not participate and is no longer on the
Planning Commission. Does this create a problem under the section 1090, alleged by
an attorney named James Markman in the enclosed letter?
Your immediate attention to this request will be greatly appreciated.
Jim Jones
Palm Springs City Council Member
2
1533 CnAPARRAL ROAD,PALM SPRINGS,CA 92262
To: City of Palm Springs
From: Desert Shadows III
Subject: Request for Recusal by Agency Member
Date: 10-23-01
I am writing this letter as the General Partner of the Desert Shadows III Lp a California
Limited Partnership. I am requesting that on all matters concerning this Limited
Partnership as well as all other entities in which I am an officer that Council Member Jim
Jones recuse himself from any participation in any matters that come before him as either
a City of Palm Springs Council Member or a Representative of the Redevelopment
Agency of Palm Springs.
On Wednesday October 16, 2001 at about 9:00am I received a phone call from Mr. Jones
informing me that he would not support our request from the Redevelopment Agency for
Tax Increment funds for offsite improvements for our project in Palm Springs.
This phone call lasted for approximately twenty minutes during which time he told me
that he would forward angry emails from individuals opposed, not only to assistance from
the Redevelopment Agency, but also to our project.
When I attempted to explain how the funds would be used he cut me off by saying, "I
know how it works, and you don't need to explain it to me." The conversation ended
with him asking me if the project would still be built without the money? I told him it
would, but also that it would be a different project, because we would have to cut back in
many areas. 1 started to explain and he indicated that it didn't matter. If the project could
still be built, he wouldn't support our request for offsite assistance from the
Redevelopment Agency.
This phone call was both disappointing and intimidating, as my partner and I were to
appear that night in front of the Redevelopment Agency, to request assistance. The
situation only got worse when later that day a candidate for City Council, Jim Franklin,
faxed out a press release to KM1R quoting (inaccurately) portions of the supposedly
private conversation I had with Mr. Jones earlier that same day. I had no reason to ever
suspect that my conversation with a Redevelopment Agency member was going to be
passed on to a candidate for city council.
I find the actions of Mr. Jones appalling and totally inappropriate considering he had
made his decision prior to our presentation to the Agency.
It is frightening that a City Councilman and Redevelopment Agency Member would not
only decide on issues prior to their formal presentation, but also call an applicant to
advise them of their decision. For either of these bodies to function ethically, a citizen
must have faith that their elected representatives will give them and others a fair and
public hearing.
I have no other alternative than to not only ask for the recusal by Mr. Jones on any issue
involving Desert Shadows III, but also on any other issues involving businesses hi which
my partner and I are directly involved.
Further, I have sent a copy this letter to the FPPC and asked them for their review and, if
warranted, to take appropriate disciplinary action against Mr. Jones, so that others will
not be subject to the same type of gross misuse of power that he displayed with us.
Sincerely,
ephen Payne
eneral Partner
DSI 111, Lp
OcY-23-20U1 02:Oupm From-RICHARDS, WATSON 4 GERSHON
714 630 6230 T-243 p 002/004 F-610
RICHARDS, WATSON & GERSHON
ATTORNEYS AT LAW
CLENN R.wATFOn T.rETER PIERCE AFROF UWONAL CORPORATION RICHARO RICMA,[OB
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VTCVEN L.DORSEY OEBOOAH R.HAKMAN
WILLAM L.IBAunZ WILLIAM F.CURLEY PI P.O, Box 1089 ----
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KAY."O.eVME ROUERT W.WA19ON OF COUNSEL
PETER M.THOABON PATRICK K.BOSKD HARRY I GER.HON
JAM-9 L.MARKMAN MARK E.MANPELL MARK L LAMKEN
e11IG A.GTEeLE MATYHEW A.pOFYNOFI'" SAYRE WEAVER
WILLIAM K KRAMER
Jim C.GRAYBON
sCOTT I.BAI.CR
MARYHA M.ESCVTIA
VIA FACSIMILE TO (760) 323-8207
AND U. S,MAIL
David H. Ready, City Manager, City of Palm. Springs and
Members of the Palm Springs City Council
3200 Tahquitz Canyon Way
Palm Springs,California 92262
Re: Desert Shadows Project—Proposed Redevelopment Agency
payments for"infiastructure"
Dear Mr.Ready and Members of the Council--
Mr.Frank Tyson has brought to my attention the fact that the Council is now
considering funding the construction of"infrastructure"to support a 17-unit condominium
project to be connected by a bridge to a nudist resort, all purportedly in conformance with the
requirements of Health and Safety Code Section 33445. My clients believe that payments
proposed actually are meant to defray some of the costs of the bridge itself. I believe this is the
same project which we previously brought to your attention as to which a member of the
Planning Commission is an architect designing the subject bridge. I believe we also suggested
that the City Attorney be asked whether the City even agreeing to give an easement for the
construction of the bridge would constitute a violation of California's conflict of interest laws,
particularly Government Code Section 1090. if the Redevelopment Agency decides to partially
fund the bridge project,that is yet another reason for the City Attorney to opine as to the
implications of Government Code Section 1o90.
In any event,what appears to be obvious to Mr. Tyson, as well as other concerned
citizens, is that this is yet another example of the Council straining to not only approve but to
fund a project for the benefit of Council cronies,whether developers or architects- I am
informed that no substantial evidence was presented to support any of the findings required
by
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Oc(-23-2001 02:6apm From-RICHARDS, WATSON A GERSHON
714 990 6230 i-243 P.003/004 F-610
RICHARDS, WATSON & G'ERSHON
David H. Ready, City Manager, City of Palm Springs
and Members of the Palms Springs City Council
October 23, 2001
Page 2
Government Code Section 33445 to support Agency funding of publicly owned infrastructure
required by the project
Health and Safety Code Section 33445 contains many requirements obviously not
met with respect to the subject project. First, it is questionable that one could snake a finding that
the bridge or other infrastructure is a benefit to the project area or even the immediate
neighborhood in which the project is located_ This project specifically benefits only the owner of
the nudist resort and/or the 17 condominium units which obviously will be sold to people who
wish to cross over the bridge to utilizc the facilities at the nudist resort. Does the Council really
consider causing that to occur being a benefit to the redevelopment project area or even the
immediate neigbborhood?
Second, it apparently was admitted on the record by the owner of the project that
the project could financially support the construction of the bridge and all other infrastructure.
Accordingly,the Council cannot make a finding that there is no other reasonable means of
financing the project available to the community. The means which should be used,namely,
funding by the people who benefit froin it, apparently is available to the community. I also
understand that, when this was stated on the record,the City Attorney said words to the effect
that"I wish you had not said that_" This is particularly disturbing. Our view is that the staff
ought to be unbiased and objective in respect to reviewing projects and making
recommendations. Statements such as that attributed to the City Attorney would indicate that the
staff is attempting to promote a project which does not meet legal criteria. It certainly would
have been more appropriate for the City Attorney to indicate that since the project proponent has
stated he could afford to build the project,including the bridge and other infrastructure,the
Council could not legally proceed to approve redevelopment funding for any part of the project.
It also has been related to me that no evidence was presented indicating that this
project will eliminate any blighting condition. For the Agency to fund any infrastructure,a
finding as to elimination of blight must be.made. The location of the condominium project is
simply an undeveloped area which is in no way blighted. It cannot be said that the area cannot
be expected to be developed through the utilization of private financing. Further,the
condominium project obviously could be built without the bridge connecting it to the nudist
resort_ In short.there is no evidence sustaining a finding of"elimination of blight." For that
reason alone, the Agency cannot legally fund the project.
Finally,Health and Safety Code Section 33445 may require that any public
facility paid for by the Redevelopment Agency needs to be specifically identified in the subject
redevelopment plan. If that is required in this instance, and the bridge or other project
infrastructure is not identified as a potential public project,redevelopment funding cannot
support the project. �/��.'
act-23-20'01 02:69pm ,From-RICHARDS, WATSON A GERSHON
714 gg0 62a0 i-24a P.0041004
F-610
RICHARDS,WATSON & GERSHON
David H,Ready, City Manager. City of Palau Springs
and Members of the Palms Springs City Council
October 23, 2001
Page 3
It would be refreshing for Mr.Tyson and my other clients who vigilantly keep
track of Palm Springs affairs to find the Council and management reacting objectively and
favorably to points in this letter so that the outcome is the withdrawal of any notion of the
Redevelopment Agency funding a bridge which leads only from a few condominium units to a
nudist resort or any other public facilities involved. Hopefully,that will be the end result of this
particular process.
Very truly yours.
RICHARDS, WATSON& GERSHON
James L. Markman
JLM:sjk
cc: Frank Tyson(Sent by Facsimile—760-325-8610; 8)8-995-8268)
David Aleshire, City Attorney, City of Palm Springs
(Sent by Facsimile—949-863-3350)
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