RIVERSIDE REDEVELOPMENT: THE 2 BILLION DOLLAR MISTAKE

Posted: May 15, 2011 in Uncategorized

As result of the 1.6 Billion as stated in the Press Enterprise, the figure is really 2 Billion per Councilman Mike Gardner.  This we incurred through the famed Redevelopment Agency.  Every Man, Women, and Child in the city of Riverside will be left to pay for the Riverside Renaissance in increased Sewer , Water, Electric, Parking, and General Fund Replacement.   The 2 Billion breakdown is as follows:, The Principal is $1,084,051,402 and The Interest is $979,022,581.  Today, the cost to each individual will be $6,660, or a family of four will have to pay out $26,400.00.   If you are wondering why your utility bill has gone up so much, it is direct result of the 2 Billion Dollar mistake.  The idea that the Reanaissance Project was a success depends on which way you look at it.  When was the last time you went downtown to admire the almost 12 millon dollar concrete Mainstreet Mall that will add enormous increases to your Utility Bill.  Another example is that the city will be voting on a new water plant that will add an additional $5.00 to your bill.

Of over 270 projects, you the taxpayer have paid for:

  1.  The Freeman Co. building on 6th and Main, purchased at 4 million, continues to remain empty.
  2.  Fourteen Million plus Land to Mark Rubin for Raincross Promenade Condos.  Now turned into rentals with the majority sitting empty.
  3.  Three Million plus for land to build the new City Owned Hyatt Hotel, which will more than likely run at a loss as well.
  4.  Land and Houses on Olivewood and Mulberry: 3.8 Million: originally purchased with Measure G money for the new Firestation, then switch-a-rooed back to original location.
  5.  Ian Davidson Architecture almost 12 Million for “Concrete”  Downtown Main Street Mall.
  6.  Marcy Library on Central Avenue.
  7.  Raincross Café  within city hall, continues to run at a loss.
  8.  Fox Entertainment Plaza: Fox Theater, 32 Million, continues to run at a loss.
  9.  Fox Parking Garage: in progress,  32 Million.

The reasons these projects were built was to attract new residents and visitors.  The question is,  will they come?  Not Yet!  The Main Street Mall continues to be a ghost town.  But council people continue to praise Brad Hudson for making the Renaissance a reality, even Steve Adams praised Brad, but no one dared talk about the cost to taxpayer.  Now, we have the up-keep and maintenance on all newly acquired city properties.  City of Riverside now competes with the private sector; they sell real estate, they are in property management, they are in entertainment and in the restaurant business.  Was that the intention of government, to compete with the free market?  And at what cost?  Simply, they are not good at it.   Did they completely forget about their public service duties to the community in lieu of now becoming City Hall, Inc.?  Can we afford to keep paying the deficit on The Fox, the many city owned buildings which remain empty of tenants and The Raincross Café, owned by ProviderFoods/Market broiler?   Can we keep on paying Rodney Couch, owner of the Raincross Café, if he doesn’t make enough money at the café in City Hall.?   Are we in business with the Raincross Café, (Provider Foods/Market Broiler)?  Yes!  If the city supported Raincross Café  makes over $100,000,  we share in the proceeds.  IF they don’t make $100,000 you the taxpayer will make the difference.  Sweet deal? Absolutely.  So how come others are not privy to this same deal?  Preferential treatment?   The CFO of the city has stated to me in an e-mail that The Raincross Café/Market Brolier  has never made over $100,000.  So how long does the taxpayer have to continue to pay for the incompetence at City Hall.

The bottom line is as long as we continue to stay asleep at the wheel, your utility bill will continue to escalate due to the city’s increasing interest cost, rising development cost over-runs and project and development change orders.  Today each individual owes $6,660.00 to pay off city redevelopment debt, next year you will owe $7,000.00, all in Brad Hudson’s attempted “Gucciism” of Downtown Riverside.

Comments
  1. Jason says:

    “When was the last time you went downtown to admire the almost 12 millon dollar concrete Mainstreet Mall that will add enormous increases to your Utility Bill.”

    Just the weekend before last actually, and I was pleasantly surprised by how much more foot traffic there was on the mall. Seems like more and more people are using it every time I’m in downtown. My wife and I grabbed a couple of tickets to see Burn the Floor next week (beats buying tickets through Ticketmaster and driving out to L.A. for a show), and then we stopped at Casey’s cupcakes before heading home. We’ll probably go to dinner before the show next weekend, maybe to Phood on Main or Bella Trattoria.

    “The question is, will they come? Not Yet! The Main Street Mall continues to be a ghost town.”

    Dude, you should try visiting during the day, only the bars are open at 2 am 😛 .

  2. cat says:

    How is your link to Utility costs and Renaissance projects connected? Can you show the data that you used in this assertion. Please provide a link for us.

  3. Anonymous says:

    The voters passed the bond request, did they not? Hopefully they understood that all debt comes with interest costs.

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