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Fresno Republican News Archive

Monday July 27, 1998

- UpDated 0800 -

Grizzlies seven year slump

Supporters at hearing pitch curve ball to City & County

By Amy Williams, Staff Writer, Fresno Daily Republican Newspaper.

CITY DESK - In a lack luster pitch on Friday, Fresno Grizzlies owner, John Carbray, appeared before an unofficial and hastily organized State hearing presented by Fresno senator, Jim Costa(D), who had been thought of in Fresno as a fiscal moderate.

The apparent purpose of the Costa 'hearing' was to re-air the fire storm of controversy that resulted from the Fresno City Council's 5-4 vote to donate $8.5 million in public funds to Jim Carbray to underwrite his construction of a $30.5 million downtown baseball stadium. Behind the 'hearing' was, perhaps, an even less praiseworthy end.

Carbray has been unable to obtain a convential loan for the past seven years from any local lending agencies on the risky project. Local investors have been scant, as well.

In a bid to keep Carbray from leaving town empty handed, the Fresno City Council voted approval last month of a novel 'Cook' financing plan in which $8.5 million of taxpayer's money would be given to Carbray's investors. And additional $22.5 miilion would be 'loaned' to Carbray, as well.

The County Board of Supervisors and the County Office of Education would, [under the hot-wired City Council proposal] assume the liability of a possible default and go ahead with additional loans to Carbray and his investors, the Diamond Group for the amount needed to complete the stadium over and above the $8.5 gift from Fresno City Council members' largesse.

County schools superintendent Pete Mehas, indicated his immediate willingness to encumber the County schools special education program funds with a multi-million private loan to Carbray in spite of Carbray's lack of credit worthiness. Mehas is hyping his approvals of the shaky loan to Carbray's investors as an FCOE board loan of new tax monies, not otherwise committed to educational programs.

Juan Arambula, chair of the County Board of Supervisors is a great deal more cautious in his trusteeship of public monies. On Friday, Arambula apparently had not yet determined if such a loan to Carbray's investors from the public treasury was either 'sensible' or necessary.

Fresno City Council member Dan Ronquillo, of District 3 attempted to justify the Costa hearings to reporters. He said his purpose was to conduct an 'ongoing' investigation.

Costa has been criticized for misusing a public hearing forum for a transparent political purpose. Has senator Costa stepped over the line?

Costa's close personal ties with Dan Ronquillo created the appearance of misuse of public office.

The California Political Reform Act of 1974 requires state and local governments officials to publicly disclose their personal assets and income. They must also disqualify themselves from participating in decisions which may affect their personal financial interest.

The Fresno Republican has obtained verification from the City, County, and State documentation that reveals, Fresno City Council member, Dan Ronquillo [chair of the Fresno Redevelopment Agency] and Fresno senator Jim Costa may indeed have undisclosed personal financial interests constituting a material conflict of interest for each of these politicians.

The two are part owners in common of condominium apartments at 2890 East Huntington Blvd. in downtown Fresno. A residential area built on top of private property obtained by use of the Redevelopment Agency's condemnation power.

The land had been a historic Fresno neighborhood with some homes going back to the 1890's. Those homes were taken from private property owners because City Hall had a 'higher and better' use in mind. That was the Fresno Redevelopment Agency's South Angus Street Project for renewal of downtown Fresno. That project was the 'brain child' of City Council members in the 1960's.

Fresno urban renewal, a downtown baseball stadium, and improvements over which these men exert influence or control including renovations on the Mall will directly impact the bottom-line of their personal financial stake and should have been fully disclosed years ago.

Following required disclosure of a personal financial interest, each man should have abstained from voting and participating in any decision making process or 'hearing' that could materially benefit their own financial stake.

Fresno County Elections Department announced on Tuesday afternoon that the Recall petition against Fresno mayor Patterson partly based on ground that the mayor opposed City Hall making a gift of $8.5 million to Carbray's investors was invalid due to fraud and insufficient signatures.

Following that announcement senator Costa began preparations for a 'public hearing' three days later.

Neither Costa nor Ronquillo could be reached for comment over the weekend.

The recall campaign has been cited for its deceptive tactics in obtaining some signatures under false pretenses. Many of the signatures submitted on recall petition forms appeared to have been collected from persons who are not even residents of the City of Fresno.

In addition to irregularities connected with recall petition signatures, these columns reported the petition leveled a series of improbable charges at mayor Patterson.

The unwarranted partisan accusations against the mayor turned-away most registered voters in Fresno.

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