By: Libi Uremovic | Original Article at patch.com
Last year the Citizens of Stetson presented over 100 signed Petitions requesting that their Mello Roos Bonds are not extended or refinanced. Their Petitions were ignored by Beaumont Staff and Council.
On May 5, 2015 the Stetson Area 5 Bond was put on the Agenda for Refinancing. Council passed a Motion that read:
202:30 Pinkney: The Motion is to approve the Bond Issuance and you had two items; one was to have Rod Gunn and ass to provide a breakdown of the Cost of Issuance BEFORE issuance of the Bonds.
Orozco: Yes.
Pinkney: And once the Bonds have been issued to direct Staff to come back with proposed uses for the Bond Proceeds for the facilities.
Orozco: Once they’ve been issued, yes.
However; the May 5, 2015 Minutes Read:
Rod Gunn and Ass. will bring a full disclosure report to Council AFTER the issuance of bonds.
The Stetson Area 18 Bonds started trading on May 15th.
Agenda Item 7.c.1 is titled: ‘Cost of Issuance – CFD’, but list the Area 18 Bond’s Sources and Uses of Funds. This does not state how much everyone with the finger in the pie will be receiving.
The 2004 Series A Bond clearly states – as required by law – “ Expenses include fees of Developer Counsel and expenses, Market Consultant, Appraiser, Special Tax Consultant (Kapanicas), Developer Consultant, Project Engineer (Moorjani) including preliminary Engineering fees and other cost of issuing District Bonds.”
This Bond refinancing is not only is a slap in the face to the property owners of Stetson, but is defrauding the any potential buyers of the securities.
John Dyson speaks about the Stetson Area 18 Bond Scam: https://plus.google.com/u/0/115709538227369445511/posts/Kcpa7J9rUmb?cfem=1
Listen to Council Transcripts Here: http://www.ci.beaumont.ca.us/index.aspx?NID=212