Rebecca Unger was informed on Wednesday evening at the Water Board meeting that the State Department of Finance had, once again, denied the city of 29 Palms the ability to proceed and build Project Phoenix using the 30.8 million dollars in bonds that the city sold.
When I told her that information she had that sound of “Oh really” in her voice and told me that she would have to read the letter herself and then also contact Richard Warne. She was concerned that perhaps the letter from the State was not as clear as I was making it seem to be. Well, I guess she read the letter and perhaps even spoke to Richard Warne.
This morning she published a story online with the headline “Project Phoenix may be doomed”
TWENTYNINE PALMS — For more than a year, the city and its legal counsel have been trying to protect Project Phoenix redevelopment money from seizure by the California Department of Finance. The downtown revitalization plan could go down in flames if the DOF rules the project’s $31 million in bond proceeds are not enforceable obligations under RDA dissolution legislation.
A letter to City Manager Richard Warne from DOF consultant Steve Szalay, dated Dec. 18, could be the match that ignites the Phoenix funeral pyre.
Szalay argued that Project Phoenix is not an approved enforceable obligation, even though the bonds were issued for Project Phoenix.
I think we all can agree that being told time after time and time again that the State just does not understand and that they are confused and overwhelmed and just do not know what to do or what they are doing wears a little thin after using those same old excuses for about the 10th time of being told “NO”.
Almost like the boy who cried wolf too many times who is going to believe city staff anymore?