CITY OF RIVERSIDE: COLLATERAL FOR CASH: THE FOX TO THE HYATT SLEIGHT OF HAND!

Posted: July 13, 2011 in Uncategorized
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Just as a Poker game gone astray, and you began to use the pink slip of your car, or the deed to your house to bank roll the chance that the gamble you are about to take  won’t be the worst decision of your life.  Who’s fault will it be? The taxpayer or City Council? or was this the unsustainable continuation of Brad’s Guccism of Downtown Riverside?   The Casa Blanca Library and the Arlington Library were both given to the State Redevelopment Agency by the City of Riverside in order that the Redevelopment Agency would provide funds to the developer of the new Hyatt Place Hotel. Sounds unbelievable, it’s not, it only gets better. We forgot to throw in Firestations 13 and 14 for good measure. Believe it, and here is the proof in this Memorandum dated March 2, 2010.  In return, the city of Riverside now leases the libraries and firestations from RDA. But the City of Riverside is accustomed to bad deals, when it’s not their money.  Ultimately, you, the taxpayer is responsible after they have left the picture and enjoying their high yielding pensions at your expense.   

What originally appeared to be happening was that if you invest taxpayer money for one particular project, but then the money was used for another project, you no longer have the money for that first project.  How would you feel as a taxpayer when you consider the bonds were created to raise the money for the Fox Parking Garage then with a sleight of hand, the funds are in the hands of the developer of the Hyatt Hotel via the Redevelopment Agency? Don’t forget, the Riverside City Council sit on the Redevelopment Agency Board. That’s right, again, the usual suspects!  And of course, if there is anything left of the funds it will, of course, go back to the Fox Parking garage.  Foremost, I wonder how the investers who bought the bonds feel? A bit sleighted?  Well according to the the City Council, Redevelopement Agency and Public Financing Authority Memorandum, there would of course no fiscal impact to the General Fund. But the city expects to make money on this deal to the tune of $525,000.00 the first year of operations and $660,000.00 by 2014.  Well if you believe this, I have bridge in Brooklyn to sell you……but it gets better. If the Hotel underperforms, the developer is required to fund any deficiencies. If the developer defaults, the Redevelopment Agency will assume ownership of the Hotel and become responsible for its operations.  Well, the taxpayer owns and operates the Fox Theatre at a loss according to Annual Budget of 2010-2011, are you ready to own and operate a Hotel?  Has anyone been to downtown Riverside, where the owners of the Mariott and Mission Inn state their occupancy not at full capacity, and struggling.  But again you the taxpayer will ultimately have to pay for the bad decisions of the Riverside City Council and Mayor, who have breached their fiduciary duty to the taxpayer.  This in part, to their failure of oversite the actions of the City Manager Brad Hudson.  But critics say redevelopment is a way for cities to basically bankroll commercial and residential developers. Controller John Chiang, in a review of 18 redevelopment agencies including Riverside County, Palm Desert and Desert Hot Springs, found Palm Desert used redevelopment money aimed at curbing blight at a luxury golf resort.  San Jose’s redevelopment agency was paying portions of city salaries with the funds, according to Chiang’s report. Was this happening in the City of Riverside?  This is part of the travesty to the taxpayer, and a travesty that ultimately needs and calls for a forensic audit of the books. Redevelopment was created for urban blight, but has been abused significantly over the years, has it made your downtown better? Does Downtown Riverside look as if it had 2 Billion in redevelopment? And how is panning out, are any of the projects beginning to pay for themselves?  These are the questions one must ask, because you, will utlimately be responsible for paying for it…

UPDATE:07/14/2011: SIAVASH BARMAND OF METROPACIFIC PROPERTIES,  IN CONJUNCTION WITH MARK NICHOLSON OF PINNACLE INVESTMENTS PARTNERS ARE CURRENTLY THE DEVELOPERS AND PARTNERS OF THE NEW HYATT PLACE HOTEL CONSTRUCTION ON MAIN STREET UNDER THE NAME OF METRORIVERSIDE AS INDICATED IN THIS DOCUMENT.   PINNACLE HOTELS USA HAD PURCHASED THE MARRIOTT HOTEL FOR 19.3 MILLION IN 2009.  CURRENTLY 35 PEOPLE HAVE BEEN FIRED INCLUDING THE MARRIOTT’S HEAD CHEF, LUIS MARTINEZ!  THE CLINCHER, THE CITY RAVES ABOUT BRINGING NEW JOBS, BUT INSTEAD THIS  TRANSACTION HAS COSTED THE COMMUNITY OF RIVERSIDE 35 JOBS!  INTERESTING NOTE, METRORIVERSIDE RECIEVED  FUNDING VIA CERTIFICATES OF PARTICIPATION BONDS, SOME TAX EXEMPT, FOR THE CONSTRUCTION OF THE NEW HYATT PLACE.  THE HYATT PLACE HAS NO CENTRAL KITCHEN AS WELL AS NO PARKING, AS THE MARRIOTT DOES. THE CITY AT THIS TIME IS CONTEMPLATING CREATING IT’S OWN CITY BASED REDEVELOPMENT AGENCY,  AS OPPOSED TO THE CURRENT STATE BASED.  IS IT POSSIBLE THAT METRORIVERSIDE OR ONE OF IT’S AFFILIATES SUCH AS PINNACLE INVESTMENTS PARTNERS ARE CONNECTED TO PINNACLE HOTELS?  CURRENTLY,ON MAIN STREET, WE ARE NOW SEEING WHAT THE COMMUNITY IS SAYING AS A “MERCHANT CLEANSING”, DUE TO THE CITY’S PLAN TO TRANSFORM DOWNTOWN INTO AN ENTERTAINMENT MECCA WITH THE FOX THEATRE AND THE NEW FOX EXTENTION.  OUR WE NOW SEEING AN “EMPLOYEE CLEANSING” AT THE MARRIOTT OF AN UNCERTAIN MODUS OPERANDI?  IS THE FIRING OF 35  PEOPLE AT THE MARRIOTT SETTING THE STAGE FOR A DIFFERENT SCENE?  WILL THE HYATT PLACE HAVE A CORRESPONDING HOTEL WITH PARKING AND A KITCHEN?  AS EVERYTHING ELSE, THE TAXPAYER WILL MOST LIKELY HAVE TO SUBSIDIZE, SINCE NO ONE IS MAKING MONEY DOWNTOWN.  AGAIN, TO THIS DAY WE’VE YET TO RECEIVE CITY MANAGER BRAD HUDSON’S RESIGNATION LETTER.

UPDATE:07/19/2011: MARRIOTT HOTEL, FIRES 35 PEOPLE INCLUDING HEAD CHEF!  IT APPEARS THAT THE PRESIDENT BHARAT “BARRY’ LALL OF PINNACLE HOTELS USA, OWNER OF THE MARRIOTT RIVERSIDE, CHANGED MANAGEMENT COMPANIES, THIS WOULD INDICATE THE CHANGES THAT ARE OCCURRING IN EMPLOYEES AND MANAGEMENT WITHIN THE MARRIOTT, INCLUDING THE FIRING OF 35 PEOPLE.

UNKNOWINGLY PUSHING THE ENVELOPE, KEEP CONNECTED WITH TMC, RATED RIVERSIDE’S MOST “SLANDEROUS” AND MEZZSPELLED, “MISSPELLED” AND “OPINIONATED” BLOG SITE!   TMC IS NOW EXCLUSIVELY ON FILE WITH THE COUNTY OF RIVERSIDE’S DISTRICT ATTORNEY’S OFFICE, AND PROSSIBLY POSSIBLY ON FILE WITH THE CITY OF RIVERSIDE’S POTENTIAL SLAPP SUIT LIST…  AGAIN, THANK-YOU COMMUNITY OF RIVERSIDE AND THE CITY OF RIVERSIDE EMPLOYEE’S FOR YOUR SUPPORT!  COMMENTS ALWAYS WELCOMED, ESPECIALLY SPELL CHECKERS!  EMAIL ANONYMOUSLY WITH YOUR DIRT!   THIRTYMILESCORRUPTION@HOTMAIL.COM  BY THE WAY, COMMENTS ALWAYS WELCOMED!

THANKS FOR YOUR SUPPORT, KEEP CONNECTED WITH TMC…

Comments
  1. kaptalizm says:

    I didn’t see anything in the Press-Enterprise about Metropacific’s purchase of the Marriott. Where can I find this story?

  2. kaptalizm says:

    Pinnacle bought the Marriott TWO YEARS AGO! Read the date on the linked article.

    Is there any documentation showing a connection between MetroPacific and Pinnacle? I don’t think so. You need to do a better job of getting the facts before you post these kind of stories.

  3. thirtymiles says:

    Yes, you are right, it is actually a 2 year story, but we were not aware of the purchase! Pinnacle Hotes purchased the Marriott in 2009 for 19.3 million. Metropacific and Pinnacle Investments are currently involved with the construction with the Hyatt Place Hotel as indicated in this document by the link, which are signed by both firms, under the name MetroRiverside. This wasn’t clear, will clarify. The bigger issue that PE hasn’t reported are the 35 people fired from The Marriott Hotel.
    https://thirtymilesofcorruption.files.wordpress.com/2011/07/metropacific1.pdf

    • kaptalizm says:

      Yes, my bad on not reading thru the whole document to see Pinnacle Investments in there. I’m not sure Pinnacle Investments and Pinnacle Hotels are related. They have different addresses, but that doesn’t necessarily prove anything. Keep digging. If there is a connection, that could be a huge story.

  4. […] happen to the City of Riverside?  Afterall, we have place in collateral are fire stations and libraries, and have been assured by city officials that this scenario could not happen.  What? Even […]

  5. […] During Earley’s reign many of our fire stations were placed as collateral for city loans, this is no way show protection and a defense of taxpayer assets.  Remember folks, there were other instances of fire stations used for collateral.  Such as the time when Firestations #13 and #14 were given to Redevelopment as collateral in order t… […]

  6. […] UPDATE: 10/26/2012:  THE DEVELOPER OF THE HILTON TO SUE THE CITY OF RIVERSIDE..  WITHIN THE CONTRACT, IF THE DEVELOPER DEFAULTS, THE CITY IS NOW IN THE “HOTEL BUSINESS.”  FOR THIS TRANSACTION, TWO FIRESTATIONS AND TWO LIBRARIES ARE USED AS COLLATERAL..  […]

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