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Department of Finance Denies RDA Loan to Fontana by SB County

By   /   January 24, 2013  /   Comments Off

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California Steel, California Speedway (Kaiser Steel Site), Fontana 2002

Fontana, Ca.,- The California Department of Finance are a knowledgeable team sitting in the driver’s seat to look at requests for payments by the 400 dissolving RDAs, Redevelopment Agencies. I will post these cases for our readers to stay informed of the continued denials by the DOF of  requests for ROPS, Recognized Payment Obligations.

In the case of Yucca Valley, the DOF continues to deny payment of the submissions to their Department.

In order for Town Manager, Mark Nuaimi, to keep the “illusion of future payments” he has requested certain language be added to the ongoing denials by the DOF and then hangs his hat on that wording alluding to future reimbursements. Story Link.  

Another Nuaimi RDA financing scheme was recently denied by the DOF in Colton’s attempt to be reimbursed for the land acquisition loan from the Water Department dating back to 2007, leaving the City of Colton out the almost $2.1 million dollars and the ratepayers on the hook for Nuaimi’s “Creative Financing Boondoggle.” Story Link

San Bernardino County will sue state to try to recover loaned money to RDAs, The Sun

“County spokesman David Wert said the county is trying to recover roughly $10 million it loaned the Cedar Glen Redevelopment Agency near Lake Arrowhead and $4.9 million it loaned the San Sevaine Redevelopment Agency in Fontana for an infrastructure project.” Read more: The Sun
Background:
The San Sevine project area started back in 1983 with the bankruptcy of Kaiser Steel Corporation. The mill was shut down and thousands of workers were laid off.  In 1985, the United States Environmental Protection Agency (EPA) and the State Department of Toxic Substances Control became involved with remediation the rest of the site; the EPA required Kaiser to remove the hazardous waste from this part before it could sell the site…..the contaminated dirt was removed, the surface was sealed and the Nascar Racetrack was constructed on this site…See pages 12-13. San Sevaine Implementation Plan.

“The City of Fontana had expressed a desire to annex certain parcels of the unincorporated County territory south of Interstate 10. This resulted in a second amendment in 2005 to remove approximately 565 acres from the Amendment No. 1 Added Area. The removal of these properties allowed compliance with the Agency’s practice that generally prohibits the Agency from conducting a redevelopment program in areas that are anticipated to be annexed into a city. The City of Fontana completed the annexation process in 2006.” Source: San Sevaine Implementation Plan.

Nuaimi was Mayor of Fontana from November 5, 2002-June 14, 2010, while working as Asst City Manager for Colton for 3.75 years. He reports he “laid himself off in a cost-cutting plan that he devised and implemented.”

 

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About the author

Margo Sturges

Yucca Valley Editor

Note: Margo Sturges has written many articles for Cactus Thorns and is the founder of Citizens4Change.info. Email contact: MargoSturgesYV(at)aol.com "In a time of universal deceit, telling the truth becomes a revolutionary act."- George Orwell

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