I didn't say I was right, I asked what you believed were the issues.
If Kerri is the ONE council member sweeping it under the rug, does that mean the other 4 are investigating or even talking about it? She surely wasn't the only one who approved the sale.
I am no expert on land entitlements, and I don't know what the city's plans were for that land, but if the issue is that the city should have done the entitlements first, thus increasing the value of the land, and it is a simple and easy process, then I agree that it should have been considered.
I remember a few years back there was the story of a family, I think they were in Hayward or Fremont, who sold their late grandfather's grazing land to a buyer who then went to the city and got the land re-zoned for from rural to residential use and sold it to a developer for a profit. The family was pretty upset that they hadn't thought to get that land re-zoned prior to them selling it.
How far do we go, though? Land has more value when utilities and sewers are in place. Should they have had that done? It has even more value with homes built on it.
There may indeed have been mistakes made. Why is Kerri the only one you are holding accountable, though? Why doesn't it disqualify all of those who were in office at the time, or who are in office today but not making a stink about it?
Aren't you the one always calling people out for perceived double standards?
stevethedad: The crux of the issue is just as you indicated - the city allowed this developer to purchase the property before the entitlements were granted at a value based on it not being entitled. On the surface, it doesn't sound as though there is anything wrong with this, other than the city sounded stupid for not selling the property after it was entitled for a greater amount. The real problem is that this particular developer prearranged (through his personal ties with council members) to have essentially exclusive right to
secure purchase of the property (and I'll get to this detail in a second), and to receive entitlements from the city. He secured the purchase upfront, but did not actually purchase the land until the entitlements were in place. (This was a condition of the sale.) After the city granted the entitlements, he then transferred funds to the city to complete the purchase, and then turned right around within days and sold the property to a home builder for a quick 300% profit. He technically purchased the property at a value that didn't reflect the property being entitled when it actually was at the time.
Governmental agencies are required to sell assets at fair market value. In the case of land, they are required to have an appraisal done to determine this value. Standard practice (and it may be law as well) is to value the property not based on potential value in the future but current value. The pre-arranged price was based on the current value at the time (unentitled and undeveloped), but the purchase actually occurred when the property was entitled. If assets are sold at less than fair market value, which occurred in this case, then it is considered a "gift of public funds," which is illegal.
This whole deal reeks of corruption. The first developer was able to secure purchase of the property without going through a legitimate competitive process. Then, he was allowed to purchase it for 1/3 of its fair market value at the time. Sure he had to invest some money to prepare tentative maps and prelimiary grading and utility plans (not final plans), but it was nowhere near $14 million, which is what his profit reportedly was. And, he was able to accomplish all this through his close personal ties with at least three of the council members at the time. Out of fairness to Ms. Howell, three of the other four current council members voted on this, and I believe it was a unanimous vote. However, she was certainly part of this.
Again, this all occurred because some of the current council members, including Ms. Howell, have far too many close personal ties with developers. And, if you think this was borderline criminal, wait until you see what happens with the SOI (unless changes occur on the council as a result of this upcoming election). This is just another good reason why Folsom needs term limits.