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On Second reading City wins nothing

By   /   April 10, 2014  /   2 Comments

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gavel-judgeWe forgot what the questions the City asked the Court…. and Expected the court to answer questions never asked by the city. They asked a question that no one ever contested.

The City wanted to know if their bonds where legal…. Actually no one ever questioned that in any of the States pleadings… and in fact agreed the bonds were good…. It seems that the Judge agrees…. And that is all.

What the city seems to have won is it can keep the Bond Money, but since no contracts where signed Project Phoenix is in the air.  Also while the court says that the bonds are indeed enforceable obligations to the “City” it does not mean it is an Recognized Obligation to the DOF. In other words While the Bonds are good and the money can be diddled away…. it does not mean that the DOF is obligated to make the interest and principle payments.

You live by the Writ die by the Writ. A careful reading of the ruling saves the State a whole lot of money in that they do not have to pay for 29 Palms folly. Sure 29 ends up with the proceeds of the bonds, but is held to their use by the very language that they used to fight the state with. Pretty funny when you think about it.

I am pretty sure this is not a win in the real sense of the word winning. The State can and will deny the interest payments to the bonds because the bonds belong to the “City” now and not the Successor to the RDA.

Congratulations City you got the question answered but in the end you just hosed yourselves. The Bond money will not buy much, but the principle and interest will eat you up.

Second look.…. the City is worse off than when it started.

 

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About the author

Dan OBrien

Publisher

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.

2 Comments

  1. Well at least Dan has the brains to analyse the opinion.

    I haven’t had the time to read it yet but I believe Jay Corbin is the only one on the council that could understand it without Munoz telling them what he wants them too believe and how to think.

    The Following is Off Topic. Question: Who has the most power in this city Munoz or Daigneault. Answer: flip a coin. The latter is directly responsible for the city’s 30 year bond debt. That will not go away. Munoz negotiated a contract with the council in which he has a big financial stake that earned him million dollars. The council’s incompetence bought into it like toddlers and now the city has three generations of property owners paying $30 million to clean up their mess.

    It’s election year but everyone is playing the game to keep a low profile. Good god, get out there and campaign like blood is flowing through those tubes. Be real… don’t play games.

    • Dan OBrien Dan OBrien says:

      Well actually I had the assistance of a couple of lawyer friends of mine who called me up and told me that the City did not win much.

      I would not be surprised if the Court will be asked to clarify its decision by one or more of the litigants. The ruling raises more questions than it answers.

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