By: Libi Uremovic| Original Article at Patch.com
Beaumont Council Agenda Item 4.a Increases Developer Mitigation Fees. One might ask why Developers would continue to pay mitigation fees to a city that’s stolen all of the mitigation fees for the past 20 years and never built the infrastructure. It is illogical that Developers would ‘invest’ in a City that has no assets, over $100 Million in judgements pending, and has to build a $70 Million recycled water plant.
Why would anyone want to build houses on land with no water in an area where the housing market has been flooded?
The answer is simple; Beaumont City Manager Alan Kapanicas has mesmerized the Developers with the fantasy of Bond Money. There are seven (7) attempts to acquire bond debt on the December 16th agenda, but a money fantasy is all it is.
Attached is copy of Page 16 of the 2013 Series B bond. It was the last bond the City of Beaumont acquired in April, 2013. This is called a “Junk Bond”. It was a $10,875,000 bond, but only $130,500 was actually paid out.
Even if Kapanicas could get a bond; there would be no money for developers, but Kapanicas can’t get any more bonds.
Not only were State and Federal laws broken by issuing a a Junk Bond to a government agency, but the 2013 Series B bond also illegally attached liens on the property of private citizens without their knowledge.
The Junk Bond was issued before the Western Riverside Council of Government’s $42 Million Judgement against the City citing ‘Fraud by Clear and Convincing Evidence’. It was before the City, Union Bank, Rod Gun, and O’Conner Securities were reported to the State and Feds for issuing illegal bonds, fraud, and embezzlement.
The Bond was issued before it was documented that the City Staff and Council embezzled all the mitigation fess and defrauded the Public into believing a ‘state-of-the-art’ wastewater treatment plant was built. It was issued before the City’s 2001 Wastewater Bond was Revoked because Urban Logic and Union Bank embezzled all the money.
It doesn’t matter if Council approves the bond debt at the December 16th Meeting, there will be no more bond debt issued through the City of Beaumont.
Kapanicas is a bond salesman. His only concern is to personally profit. It only cost a few thousand to pay-off Council, but developers have been promised big bucks. Kapanacas knows that even if he got a bond – it would never generate the amount of money he’s promised to each developer.
It doesn’t matter what story Kapanicas tells the developers; if the developers/property owners allow bond debt to be attached to their property the developers/property owners will be responsible for the bond debt.
The 2013 Series B bond Premium and Interest payments are $1 Million/year for 30 years. Beaumont Developers need to set aside the fantasies that Kapanicas has whispered into their ears and ask themselves if their property is worth the $30 Million in property taxes that Kapanicas is attempting to attach.
Agenda Item 4.a; http://www.ci.beaumont.ca.us/DocumentCenter/View/19628