The Public Policy Institute of California in it's 1998 study proved that cities with RDA's show little or no gain in revenue over those cities without RDA's. We are now yearly issuing Redevelopment Agency Bonds to pay off Redevelopment Agency bonds. Our budget this year has exceeded $24,000,000 from according to Mr. Schwab in a news article $3,580,000 Does anyone see $24,000,000 in improvements in this city? This is no different than a check kiting scheme where you keep writing bad checks to cover bad checks. This is your property taxes in essence going into the pockets of developers like Jacobson and scam artiest like The Corp. for Better Housing that if anyone looks at them, it is very plain, they use their charity status as a means to avoid paying taxes.
We were told by Schwab and Jacobson that no city or RDA funds would be used to pay the lease of $7500 a month on a new library we don't need. Two days later Schwab reversed himself in the press and said that the city or the RDA would make the lease payments. We have learned about Mr. Schwab that the old adage "when his lips are moving" holds" true" and I hate to use that word in the same sentence that bares Schwabs name. Now they say the library will be it's own free standing building. What they have not told us is how much more will this cost the tax payers of Grand Terrace over the $7500 a month which equates to $90,000 a year. One can only surmise, that no doubt, there will be an increase which will lessen even more the projected revenue of the Town Center. Now the library is going to be located on Michigan across from the skating ring. I'm sure the day laborers will find this much too far to walk to use the rest room or take a siesta on the lawn. On the other hand it will be,according to plan 43, FORTY THREE? This whole thing should be put on hold till there is a definite plan by someone. It appears Jacobson can't figure out anything except he wants Ms. Stringfiels and Pit Stops property. He owns four parcels and the City owns the rest, but he wants the city to buy the rest and sell them to him at an unknown rate per square foot. Show us the money Mr. Jacobson , Please.
My suggestion to the City is that they require of Mr. Jacobson an escrow account of all the monies that it will take to buy the property and build the Town Center. Show us that he is financially capable of such an undertaking. We are aware that he could not make the escrow payments to those that where threatened with eminent domain if they did not sell to him. Looking on the Internet all the projects he has undertaken have gone up for sale before completion. Some before he even broke ground.
Unfortunately I have the feeling that the City Council's right hand does not know what the left is doing. Councilwoman Garcia, in my opinion, should not have had to ask so many questions at the council meeting. She should have been able to give the citizens answers. Councilman Miller, by his indignant comments, as not being informed as to what Schwab and Jacobson were working out between themselves and the three council members that were informed and two weren't should turn on some light bulbs in the community as to were the money is going and to whom. I challenge anyone to try and follow the money trail of this city.
By design the book keeping will prevent you from doing so. Grand Terrace will no longer be the sleepy community we have loved these many years, except for the citizens that are not paying attention. They have been warned.
