This morning Gary Daigneault has reported on KCDZ-FM that Warne has commissioned yet another Appeal to the Department of Finance to pay for Project Phoenix.
It swings from ridiculous to sublime, as the Staff and contract consultants of the City of 29 Palms seem to make it clear that their loyalty is not to the people of 29 Palms but to the revenue stream of the now defunct Redevelopment agency.
The Department has repeatedly stated in letters and emails to the city’s Manager, Attorney and this RSG bunch that (DoF wrote this in Red):
Finance’s position on line items 11 and 12 above remain. To clarify, DOF did not question the tax allocation bonds nor did we question related principal and interest payments due on those bonds. However, we did question the use of unexpended bond proceeds to carry out the project. HSC section 34163 (b) prohibits redevelopment agencies from entering into contracts. Given that there were no contracts in place prior to June 28, 2011, the projects are not enforceable obligations and the use of tax increment or unexpended bond funds is prohibited. Further HSC section 34177 (i) states bond proceeds shall be used for the purposes for which bonds were sold unless the purposes can no longer be achieved, in which case, the proceeds may be used to defease the bonds. ABx1 26 requires agencies to expeditiously wind down the affairs of the dissolved redevelopment agencies and provide the successor agencies with limited authority that extends only to the extent needed to implement a winddown of redevelopment agency affairs.
The argument it seems floated by McCleary of RSG is the proceeds can only be used for Project Phoenix and any other use would put in jeopardy the bonds tax exempt status. This is poppycock and goes against HSC section 34177 (i). Think about this folks the bond proceeds are going to be used to repay the bonds. The bonds remain tax exempt. The only loss is to the city in the tax increment that might well have flowed to the city coffers now flows to service the bond debt. If per chance the proceeds were used by an other government agency they would still remain tax exempt.
What the hell do these boobs not understand? THE STATE IS NOT GOING TO PAY FOR PROJECT PHOENIX. Get over it and move on. These guys need to know when to hold them, Know when to fold them and Know when to walk away. It is time to Fold and walk away from the table.
We seriously have a problem with our City Manager running rogue. If the City Council does not rein this guy in and put a stop to this insane brinkmanship with the State the People of Twentynine Palms will. Believe me this is not an idle threat. Several serious groups have contacted me about recall.
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