From the Email InBox: A Question.

Friends:

Am I the only one that is curious as to the whereabouts of the 8-9 million dollars that Schwab gave the Corp. For Better Housing. Should it not be in an escrow account while the Senior Villa's are being built, drawing interest for the RDA and released as the Corp shows that it needs X amount to construct each step? I'm no contractor but I believe that is how even two or three hundred thousand dollar houses are constructed. So all you folks that are smarter than me on construction pipe in here.

Gramps will start the answer:

All contracts should have a section called terms and conditions. One of those conditions relates to the price, and how the money will be paid and when. The specifics of this should be available in the Contract between GT Redevelopment Agency/City of Grand Terrace and the Corporation for Better Housing.

It would seem to most people that an escrow account would be appropriate or a performance bond of some sort at least. It may well be that the contract between the two is nullified and the City of Grand Terrace will have to pay a settlement of some sort to off set actual expenses up to the date of contract cancellation. These are the specific terms and conditions spelled out in a contract. Grand Terrace may be found not liable for these real costs or the costs may be discounted as the Corporation for Better Housing may be found to have been the cause or partial cause of the cancellation, and a court may even require the Corporation for Better Housing to pay punitive damages to the City / RDA and Citizens for having made a bad contract.

So it is back to the question what were the particulars of the DEAL. The City could have posted the contracts on the web site so the Citizens would know the particulars prior to the City Councils Approval of the Contract, but no the citizens are not so informed.