It is clear that Mr. Staff Schwab went to the City Council with a plan to get himself a house at taxpayers expence. That is a Gross Conflict of Interest if nothing else.
It took 1 day to transfer the house from the Redevelopment Agency to the City of Grand Terrace then to Tom Schwab. Let's look at the time line.
July 12, 1999 the house was purchased from its owner by the RDA. Where are the authorizations to approve the RDA's Purchase of the House? Who began the negotiation? Where are the records of the public announcment the house was to be purchased?
January 14, 2000 Mrs Schwab files for Divorce from Tom Schwab, City Manager/RDA Director
JULY 17, 2000 was the day the Council Approved the Employment Contract Change was Back Dated to be "EFFECTIVE ON MAY 11, 2000" to provide Mr. Schwab with a house. Was he living in the house prior to the City Council's Approval? This document was not drafted at the initiation of the City Council, it was Schwab who presented the document and resolution to his personal housing problem.
There is no record of a transfer of funds from the the City to the RDA for this particular transaction or transactions in terms of Money transfers from one bank account to another. Perhaps this is just one of those transactions from the RDA to the City that Mr Schwab had no intention of paying the RDA for?
JUNE 29, 2000 Mayor Byron Matteson Signed the Grant Deed transfering the property to Tom Schwab who listed his address as City Hall. Pror to City Council Approval but after the "Effective Date".
JULY 17, 2000 was when the City Council Approved the "Contract" to include Housing in Mr. Schwab's Compensation. Back Date of Effectiveness to May 11, 2000
Auguest 1, 2000 Brenda Stanfill Notorizes Mayor Matteson's Signature on Grant Deed, much after it was signed. This is after Council Approval on July 17, 2000, but much after the actual signature date of June 29, 2000
Auguest 9, 2000 The Grant Deed was filed with the County Clerk it states information that is incorrect at the time Mayor Mattesen Signed it or Brenda Stanfill Notorized the Mayor's Signature.
Tom Schwab, then City Manager was not single on June 29th, 2000 or on Aug 9, 2000. The City did not own the property untill Aug 8, 2000 so the Mayor's signature was pre mature. Tom Schwabs Divorce was not final untill Aug 18,2000. He was not single.
There is no support document offered showing the transfer of the house from the RDA to the City when it was filed and who it was signed by. Perhaps some one can dig up that document.
THIS GRANT DEED SIGNATURE PREDATES THE CONTRACT RENEGOTIATION DAY OF APPROVAL. WHY PRESENT IT TO THE OTHER COUNCIL MEMBERS IF THE ACTING MAYOR HAS ALREADY SIGNED THE GRANT DEED MR SCHWAB?
The Aug 9, 2000 House Grant Deed is transfered to Tom Schwab a "Single Male" from "City of Grand Terrace" that is clearly a document that should be checked for its official record as it looks tampered with or white out was used. If nothing else Mr. Schwab was not a Single Male on Aug 9, 2000. His Divorce Judgement was August 18, 2000. There is reason to question the record provided.
Aug 18, 2004, Mr Schwab Refinanced the house and paid off the city their cost, at the height of the market and no doubt experienced a capital gain in the value of the house. Did he declare added income? Did he continue to receive his Stipend for housing payment in addition to the market increased value as a bonus? (Of course now he may have more debt than house, but so what if the city was still paying the stipend every month, he figured that gravy train would not end.)
From the San Bernardino County Records on the Sale of the Property:
Documents of Record: Found: County Records
20040596977
08/18/2004 3 Substitution of Trustee
Reconveyance SCHWAB THOMAS (R)
GRAND TERRACE CITY COMMUNITY REDEVELOPMENT AGENCY (E)
08/18/2004 3 Substitution of Trustee
Reconveyance SCHWAB THOMAS (R)
GRAND TERRACE CITY COMMUNITY REDEVELOPMENT AGENCY (E)
20040596977
08/18/2004 3 Substitution of Trustee
Reconveyance GRAND TERRACE CITY COMMUNITY REDEVELOPMENT AGENCY (E)
FIRST AMERICAN TITLE INSURANCE COMPANY (R)
08/18/2004 3 Substitution of Trustee
Reconveyance GRAND TERRACE CITY COMMUNITY REDEVELOPMENT AGENCY (E)
FIRST AMERICAN TITLE INSURANCE COMPANY (R)
SCHWAB, THOMAS J SO 100.B 08/09/2000 08/09/2000f
NONE 20000286267
NONE 20000286267
CITY OF GRAND TERRACE SO 100. B 08/09/2000 08/09/2000 08/08/2000 20000286266
GRAND TERRACE COMMUNITY REDEV AGENCY SO 100. B 07/12/1999 07/12/1999 08/08/2000 19990291878
MOYA, SANDRA J SO 100.B 04/23/1999 04/23/1999 07/11/1999 19990172870
GRAND TERRACE COMMUNITY REDEV AGENCY SO 100. B 07/12/1999 07/12/1999 08/08/2000 19990291878
MOYA, SANDRA J SO 100.B 04/23/1999 04/23/1999 07/11/1999 19990172870
SECRETARY OF VETERANS AFFAIRS SO 100. B NONE 08/04/1998 04/22/1999
Dates of Transaction of Interest are in BOLD
Where is the Bank Transfer of the Money From the City to the RDA?
HOW can the City Manager get a Second on a House that the City Had Conditional Ownership of? What is tha actual Finacial Trail and Accounting Standard Practices being used to record the Payment for the House?
This would be FULL DISCLOSURE, and then the correctness of the transaction could be evaluated in FULL. Not over the phone.
Divorce Proceedings that Caused Schwab to "Need" a new home in GT where he was already living with his eventual x-wife and daughter.
| ||||||||||||||
| Party Number | Party Type | Party Name | Attorney | Party Status | ||||||||||
| 1 | PETITIONER | LINDA S SCHWAB | Pro Per | JUDGMENT 10/18/2000 | ||||||||||
| 3 | CLAIMANT | CALIFORNIA PUBLIC EMPLOYEE'S RETIREMENT | Unrepresented | |||||||||||
| 2 | DEFENDANT | THOMAS J SCHWAB | Pro Per | JUDGMENT 10/18/2000 | ||||||||||
Schwab House Post: Contract and Investigation by Friendly DA's Office See Link:
There is reason to question the procedure by which this transaction took place. City Property should not be transfered to an employee or any one without proper public notice and competitive bidding for Surplus Property.
Perhaps this is OK with Mr. don't pay taxes, halt criminal investigations Schwab. But do we really need to have this on our City Council? Haven't we paid him enough?
