Category Archives: Alameda Point

SunCal Loses Fraud Claims Against Gray 1 CPB LLC

Court documents filed late last month in southern California show that SunCal has lost their counter-claim of fraud against Gray 1 CPB LLC and Central Pacific Bank over loans the bank made to SunCal for a development project.

Gray 1 CPB had purchased the loans from Central Pacific Bank in Hawaii, loans that the bank had originally made to Fillmore Sun LLC, and loans that SunCal CEO Bruce Elieff had personally guaranteed. Gray 1 CPB went to court to force Mr. Elieff to make good on the loan guarantees and a jury ultimately found Mr. Elieff liable for for $9 million. Gray 1 CPB is still trying to collect on the judgment.

Mr. Elieff counter-sued Gray 1 CPB and Central Pacific Bank alleging malfeasance on their part, alleging that the bank had acted fraudulent and the guarantees were not enforceable. But a jury disagreed and found that Central Pacific Bank had no intent to deceive Fillmore Sun and found that the Bank made no false representations to SunCal. The jury also found that the Bank intended to keep all promises made to SunCal and Bruce Elieff in the contract documents.

The case is number 30-2008-00112660 in the Superior Court of California, County of Orange.



City Fires Gallant

PRESS RELEASE

December 30, 2010
FOR IMMEDIATE RELEASE

Contact:
Lisa Goldman, Acting City Manager, 510-747-4700

New Mayor Marie L. Gilmore and the majority of the Alameda City Council opted for a fresh start Tuesday night, giving a “notice of non-renewal” to Interim City Manager Ann Marie Gallant and placing her on paid administrative leave. The move, in full accordance with Gallant’s interim contract, signals the Council’s desire to build an administrative team in Alameda that reflects the community’s desire for a permanent City Manager.

Mayor Gilmore and the City Council thanked Gallant for her service and for helping the City tackle its difficult financial issues. The City Council named Lisa Goldman Acting City Manager for the duration of the search process, which is expected to last several months.

Goldman has been with the City since February 2007 and is the former Intergovernmental Relations Manager for the City of Fremont. She has degrees from Harvard College and UC Berkeley’s Graduate School of Public Policy and is the right choice to direct City policy during this transition.

Gilmore and other leaders have promised to rebuild trust with the community. “Alameda must move forward,” noted Gilmore, “and that requires permanent staff and a total commitment to stability, transparency and resolving conflicts in good faith.” Gilmore pledged that the search process will set the tone for her administration. “It will be competitive and fair.”

The City Council majority hopes that all civic leaders and residents, regardless of their viewpoints, share this renewed commitment to open debate, civil discourse and public dialogue. “Alameda has a proud tradition and a bright future,” Mayor Gilmore said. “We need a team that views public service as an honor and respects the public’s right to participate in community affairs.”

For more information on the job posting or search process, visit the City of Alameda’s website, www.ci.alameda.ca.us.
# # # # #

So much about this is wrong.

Let’s start with the timing. “New Mayor” Gilmore and “new Vice-Mayor” Bonta have been on the job for a whole week now. They were installed after the nastiest election in our city’s history, filled with deceitful campaign tactics, incessant manipulation by SunCal (and its successor Argent) with waves of outrageous direct mail, robocalls, push polls, YouTube videos and cable TV ads.

The perception of Ann Marie Gallant as a polarizing figure in Alameda politics has mostly been generated as a result of two issues: investigating Lena Tam for BCC:ing emails against City interests, and advising the City that it was not in our best interests to pursue a relationship with SunCal. This was reinforced by many paid advertisements during the most recent political campaign, most notably this one:

SunCal mailer targeting Ann Marie Gallant

In this SunCal-sponsored mailer, she’s accused of “wasting tens of thousands of tax dollars on a personal vendetta” which was untrue; she was rightfully investigating Lena Tam’s violation of the Brown Act, whereby she BCC’ed City emails to SunCal and compromised the City’s negotiating position. Gallant is also said to be “the focus of a $100 million lawsuit” – lodged by SunCal.

Although having taken great pains to distance themselves from the bankrupt developer during the campaign, at the first opportunity, Gilmore, Tam and Bonta did exactly what their benefactors would have hoped: removed their greatest obstacle to Alameda Point. And they way they went about it, in the quiet of the Christmas holiday, with nobody around to notice or speak against them only adds the level of discomfort that their act has engendered.

The press release listed above was issued today, Thursday the 30th. But, as expected, the news was leaked almost immediately after the meeting Tuesday night, not by any official channel, but by CADC official John White, so instrumental in electing Gillmore, Tam and Bonta, who went running to crow on Twitter, Lauren Do’s blog and the SF Gate about it within minutes.

Interestingly, the message was as poorly received as the messenger. On sites where I would expect support and glee, there was suspicion and mistrust. On the SFGate, user KSmooth asked

Not sure what the real reasons are either, but I’m curious why the “Transparency Police” wasn’t all over this. This was done during the holidays when many people were out of town, including one of the city council members, and the way it was agendized, not many people knew who the agenda item was referring to. In fact, most people I talked to believed that the first city council meeting was not taking place until January, after the holidays.

I’m sure many people would have loved to speak out and show their support for the ICM before a decision about her contract was made.

This makes me believe that this whole “transparency” issue is a sham!

Simple Schmoe was more direct:

Why was Gallant put on admin leave until the end of her contract (i.e., fired without having to be officially fired)? The politics of compatibility. Gallants politics and ethics are incompatible with those of the new Mayor, Bonta, and most certainly, Tam… So, it’s not surprising they made Gallant’s ouster a priority; a bad decision and Alameda’s loss, IMO. Who will be next in their ‘purge’? Time will tell. The City is their’s to improve or screw up. That said, the ultimate responsibility for this Council rests with those who voted The Slate into office. I hope you made the right choice for Alameda.

On Patch, carol gottstein wondered:

It appears Gilmore-Bonta-Tam are indeed voting en bloc just like their opponents warned that they would! … city gov’t spending (e.g. this closed session decision) becomes more bizarre daily. I don’t know who the good guys are anymore.

And Jack B. asked on The Island:

John Knox White, I am curious… how did you get the story out so quickly last night? Was there an audience at City Hall waiting for the closed meeting to get out, or did they send out an announcement somehow?

That doesn’t sound like a resounding endorsement from our community, more like a “What? We weren’t expecting that?” Marie Gillmore was voted into office with only 36% of the vote, while SunCal was chased out of Alameda by over 85% of our residents. And she campaigned on a platform of excellent schools, and community unity, not immediately removing the ICM.

“Alameda must move forward,” noted Gilmore, “and that requires permanent staff and a total commitment to stability, transparency and resolving conflicts in good faith… We need a team that views public service as an honor and respects the public’s right to participate in community affairs.”

This statement could not be more true, and I am impressed that Marie understands this. However, with her first act as mayor, and her method of disseminating the information of her actions, it is clear that her administration so far has mastered anything but that.

We did have a good start underway, with a series of meetings soliciting community input for Alameda Point, let by ICM Gallant, but now I’m left to wonder what’s to come of the time and money invested in those meetings? New Mayor Marie Gilmore has already let the Golden Gate Yacht Club know she’s willing to provide facilities at the Point for use for America’s Cup, should they secure it.

But, as of now we have no reason as to why Gallant was let go from her job. Chances are we will never get an official reason other than our basic suspicions that the new powers-that-be are displeased by the ICM. None of her good work protecting us from becoming ensnared with SunCal and renovating our budget was enough to sway them, as it was me, despite my initial misgivings.

2011 will be an interesting year to watch the voting bloc of Gillmore, Tam and Bonta as they try to balance appeasing their benefactors and putting on a good show for the voters of Alameda, all while working out what office to run for next. As well as many important issues to resolve around the city, there are lots of positions to fill: Development Director, City Attorney, Fire Chief, and appointments to boards and commissions. I don’t think there will be many votes in City Council that won’t be 3-2, especially that for the next City Manager.

I hope we citizens will get a chance to “participate in community affairs” beyond commenting on blogs, or hearing about City decisions from anointed messengers who have the right inside connections.

Addendum:

I meant to include this sharp analysis from commenter BigAl at Blogging Bayport as to why the path to SunCal’s return has become even more worrisome:

The lawyer for Gray1 CPB, LLC, that creditor of SCC Acquisitions, Inc. and Bruce Elieff claims he has collected virtually nothing of the $10 Million judgment against them (including attorneys fees), because all of SCC’s and Elieff’s vaunted millions have been hidden. SCC and Elieff have now been sued for another $144 Million by a bankruptcy trustee. As a result, were they to show up in Alameda and claim to the new City Council that they are suddenly flush with cash to develop Alameda Point, word would ricochet down to the creditors down in Orange County that SCC and Elieff were claiming to have cash. That in turn would get them in major league hot water with the $10M unpaid creditor as well as the bankruptcy trustee who is suing them. The problem with being “too cute” about hiding cash in 150+ LLCs, like the judge in the Gray1 case ruled SCC and Elieff had done, is that when the cash reappears it disappears.Whether the current Council members are intelligent enough to see THROUGH Elieff and SCC’s re-emerging as an economically viable developer of Alameda Point will be interesting to watch.

Let’s hope that if there is a time all presentations by SCC and Elieff will have to be out in the open, in compliance with the Brown Act, and not in closed session. I was not thrilled with the City Attorney’s decision on that issue. If the Council insists on hearing an economic presentation from SunCal aka Argent aka SCC aka Elieff in closed session, the attorneys for the $10 Million creditor and the bankruptcy trustee will be able to drag the Council members and City staff into depositions to learn what b,s. the developer had peddled on its financial where-with-all.

What Do We Want?

Jobs and Adaptive Reuse! Where do we want them? Alameda Point!

Last night’s Going Forward meeting at the O Club, representing the residents of the West End that contains the area most directly affected by all this planning, was very well attended. There was a cross-section of community members on both sides of the Measure B issue, including the Sauses and the Sweeneys, with many new faces who had not come to previous meetings. Anne Marie Gallant was not in attendance because of a conflicting meeting, so Deputy City Manager Jennifer Ott ran the show.

This meeting was decidedly different than the previous one I attended at the Mastick Senior Center, in that there was questioning, right from the beginning, of the program’s emphasis on building housing at the Point. It seemed like every table made a point of saying how much more interested they were in the current structures being reused, and that jobs and income for Alameda should be created before considering housing.

I sat at Jennifer Ott’s table, which was one of the two that discussed land use, and we came to a consensus that we wanted to see something done with the Point that benefited Alameda’s current residents, that provided for more jobs, that took advantages of the resources of the site to generate income for the City, and that would integrate sustainable, renewable technology into any development. We also discussed the feasibility of businesses investing in long term leases, live/work spaces and the importance of infrastructure and potentially partnering with the VA.

The overall tenor of the tables’ reports was to keep Alameda Point much as it is. People were mostly  against building more housing, and preferred to reuse the available structures at the Point to augment the city’s coffers. There were some interesting alternative suggestions, including a Ferris wheel and an under-estuary BART station.

What I took away from this third “Going Forward” meeting, is what mattered most to those in attendance was their quality of life, the city’s economy, and Alameda’s character, not building houses at the Point.

Going Forward – Mastick Center

On Thursday evening at the Mastick Senior Center, the second in a series of meetings concerning the planning for the future of Alameda Point was held. Approximately seventy people were in attendance, including community activists Gretchen Lipow and Ash Jones, current City Councilmember Doug de Haan, and former Councilmember, Tony Daysog, both recent Mayoral Candidates.

Attendees were welcomed by Interim City Manager Anne-Marie Gallant, and asked to see, “What we can do as a community to actually take this back and see if we can move forward with a vision that works for everyone and reflects everyone’s interest.”  Deputy City Manager Jennifer Ott then introduced the planning team the City had hired and the workbooks to be used during the evening.

Six discussion groups were available: Transportation and Access; Land Use was so popular it broke into two groups; Historic Character, Preservation and Adaptive Reuse; Parks and Open Space; and Building Types and Neighborhood Character. Planners hired by the city worked with each group as facilitators, directing and guiding each discussion.

Each group worked for about an hour, discussing each specific topic, going over an agenda directed by the planner/facilitator, looking at options for Alameda Point. Although there was a lot of very direct and specific input from the community and individuals, it seemed fairly plain that the facilitator, at least at the table at which I was seated, was looking to get specific answers validated, not to get new input.

After the hour of discussion was up, a person from each group was nominated to report back to the general assembly as to what each table had discussed. Among the people nominated in their groups to speak, David Burton, speaking for one of the Land Use groups, mentioned the general discomfort most residents have with new building above three stories, and the need to maintain the current character of Alameda’s architecture. The other Land Use table recognized environmental concerns inherent to the area, including the habitat of the Least Tern and the incursion of toxic plumes from hazardous waste left behind by the US Navy that needs remediation.

Diane Lichtenstein spoke for the Building Types and Neighborhood Character table, and brought up the issue of scale for buildings and businesses proposed for the Point, as well as the issues regarding transit to and around the area. One of the most interesting ideas floated for building types by the moderator was that of a ‘Signature Building’ like SF’s Ferry building, or a hotel tower. Beth Greene represented the Adaptive Reuse table and mentioned issues concerning the practicality and feasibility of the subdivision of the NAS, and the importance of continued use of the buildings that are now in use.

The theme that was repeated by table after table, group after group was that if the Point is to be developed,  people want it to be developed with sensitivity to our existing community. People want something that adds to the City of Alameda, not that ruins it or overwhelms it.

As the ICM alluded to in her opening remarks, the Citizens are gun-shy about development after such nasty previous experiences with the Point. It will take a lot of community input to keep the plans for Alameda Point on track. The third in these series of meetings will be held at The O’ Club, 641 West Red Line Drive on December 8, 2010 from 6:30 – 8:30 p.m.