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Local Radio Station Reports Warne makes 4th appeal to DoF

By   /   May 14, 2012  /   5 Comments

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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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About the author

Dan OBrien


Cactus Thorns has been online in one form or the other since 2001. What started as a personal blog documenting the corruption and lack of Due Process of the 29 Palms Community Development Department has turned into over these many years into a hugely popular Independent Alternative News Media Outlet. We have partnered with other media including The Desert Star Weekly, Joshua Tree Star, other blogs, indie media and an incredible staff of volunteer Reporters, Commentators and Opinion Makers to create one of the most read, honest and dependable alternative to the Local traditional Media services in the country. Thanks to you the reader we are in the 5% of most read sites in the World.


  1. Mark Clemons Mark Clemons says:

    Rogue city manager, come on you know he has the oversight boards and the councils blessings, any disdain should be towards the voters. It is they who created this mess, it is the voters who are the only cure. Our local populace likes shinny over value, and that’s what they will have. if we don’t ilke it we have two choices educate the voters or get out of town.
    The lawyers consultants and staff are doing what they do best and that is extract the wealth, and if the majority approves we the minority has not done a good job of educating, we get the shaft we deserve

    • Dan OBrien Dan OBrien says:

      If he has their blessings, then it better be in the Records of the meetings of the boards and council. Like I said, you are not the only one calling for recall Mark, I have talked with three other groups that have had it with this Council and are talking about recalling some to recalling the whole lot. The Council needs to take a look at their losses and make some survivalist decisions.

      This time it is not Dan O who is calling for the recall, it is some of the Councils best friends that have come to me quietly to ask for my support.

      You know me Mark I’m always up for a good fight. But I am not going to be leading the charge. If you groups what to recall then you in those groups need to take the steps and do the paperwork… I’m not going to be anyone’s sacrificial Goat.

      • Mark Clemons Mark Clemons says:

        I here you Dan, HOWEVER you and only you are the man to lead such an important endeavor. Not only is this blog the center of reliable info in the basin, your charisma and knowlage of the shakers, tit suckers and the rest dictates you the man. As I said before I would put up a little seed funds and a couple hours of staff a day.

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