Stater Brothers & City of GT Insult Free Enterprise

The contract between Stater Brothers Market and the City of Grand Terrace lists as one of the justifications for the contract and gift of $1.2 MILLION Dollars, was that the current location was charging Stater Brothers higher than market rates for their lease.

What city desk do I as a consumer approach to get financial assistance when Stater Brothers is over charging for groceries? Look at the price of produce in Stater Brothers, compare that with the prices at Cardenas, and Fiesta Market.

While Nero Jack Brown played his hypnotic tunes of Poor Little Stater Brothers... TapouT is moving out of Grand Terrace. All most all of the 140 jobs mentioned in the news paper will be gone from Grand Terrace. Most of the people will not be offered jobs in Orange County or be able to afford to move to Orange County or Commute to OC for work.

Will these displaced workers be hired by local businesses? Or will Grand Terrace give each of these individuals a loan to start a business? After all they are going to see harder times than Stater Brothers is having

TapouT Taps Out of Grand Terrace

TapouT will be leaving and over 100 of the local employees will lose their jobs as the company moves from Grand Terrace as the result of being bought by a Canadian Firm.

Two Faces of Ferre and the Rest of the Triad:

Mayor Ferre now clings to the advise of the City Attorney Mr. Harper that the Non Payment of Payroll Taxes (Employee and Employer Contributions), for the past 30 years should be an issue discussed behind closed doors. This is one of those cases that much of the discussion could or "May" be discussed in public when it is in terms of the generality of the situation or the Management Decisions made that perpetuated that oversight in proper Accounting Practices.

HOWEVER, this time Mayor Ferre is using the "May" as a MUST... and she is taking the advise of the Council of the City Attorney.

Sure she does when it may be covering her own POCKET BOOK. ( I bet you thought I'd say some thing that sounds like ask.)

Recall that Same "Trusted City Attorney" advised this council recently that the Code limiting Political Signs and Speech has been found UNCONSTITUTIONAL Restraint of Political Speech. That the City could be taken to court and the law suit could be costly.... OH no matter, the Mayor Ferre and the other members of the TRIAD Garcia and Cortes don't care about the possible law suit cost, or the rights of citizens to speak or have political signs in their own yards... They would not even second a motion made by Walt Stanckiewitz to vote on the recommendation of the City Attorney, and the Staff Prepared Revised Code.

BUT, let the Triad and their Buddy Schwab and Berry risk facing the Audit and Penalty of a Court or IRS Audit and a State Franchise Tax Audit, the Citizens have no right to know about the shenanigans that they have been up to behind closed doors in the past or what they are collectively in collusion to do now.

Is your tong forked in addition to you having two faces Mayor Ferre?

So lets make it simple.

The City's Mayor Signed a Document of a Grant Deed prior to the Contract Negotiation being Approved, and Prior to the House being transferred from the RDA to the CITY.

IF the City Council had rejected Mr Schwabs request for a house would the CITY have gone on with the property transfer to the City for the House to be sold as Surplus Property on the OPEN MARKET? IF that was the case why the fancy paper work folks?

Mayor Matteson signed over a Grant Deed prior to the City "Owning" the house.

City Council Approved the HOUSE DEAL prior to the City Owning the House.

Thus the house that Mr Schwab received was owned by the RDA at the time of the Negotiation, it was not "Surplus" City property. The only "NEED" for Mr Schwab to have a house in GT came about because he was losing his other house in Grand Terrace as a result of his wife divorcing him. Are the taxpayers responsible for that? Gee where do all the men sign up for that perk of being a Grand Terrace Citizen. Most of us going through a divorce have to move into a man cave of an apartment or live on a friends couch until the property settlement is resolved. NOT Mr. Schwab. he can's suffer the indignity of life the rest of us do.

The Requirement to Live in GT was not a stipulation prior to his "Personal" issue. It was not a stipulation for Mr. Berry. It was not and is not an issue for Betsy Adams.

It this smelling like a DUCK YET FOLKS?

Mr. Schwab maneuvered him self into a Formerly VA Financed/ RDA Purchased/ home that was intended for low to moderate income people to be able to purchase. Rather than sticking to that civic obligation of providing perhaps a discounted house to a struggling vet or individual or teacher, he decided his need was more important. He had sufficient income to purchase his own home in GT while he was married. His income was hardly Low or Middle Class. But, he wanted more, more more.. Aren't we quite done with that type on our city council.

He is equal to Bea Cortes with her Me Me Me... You made me cry, or your going to meet my friend the DA...

Schwab House Transaction Dates Quick Review

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)

20040596977
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

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

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.

Case SBFSS49111 - SCHWAB -V- SCHWAB

Complaint Number: 1 Complaint Type: PETITION Filing Date: 01/14/2000 Complaint Status: Judgment Entered 10/18/2000
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

Case SBFSS49111 - SCHWAB -V- SCHWAB

Schwab House Post: Contract and Investigation by Friendly DA's Office See Link:

http://grandterracenews.blogspot.com/2006/09/progress-on-schwab-house-investigation.html

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?

Have You Had Enough Grand Terrace?

Grand Terrace City Council silent on tax liability

Ryan Hagen, Staff Writer

Posted: 09/05/2010 09:58:13 PM PDT

Grand Terrace officials say confidentiality agreements still prevent them from discussing possible repercussions of the recent discovery that elected officials have never paid taxes on their stipends, and it is unclear when those agreements will end.

The Internal Revenue Service defines elected officials as employees of the city they serve, required to withhold part of their income. Members of the City Council and Planning Commission have not done so since Grand Terrace was incorporated in 1978.

Noting that they had inadvertently violated the law, the City Council voted Aug. 24 to require current and past members of the Planning Commission and council to pay the previous three years' taxes.

Because they were meeting in closed session, city representatives said they could not reveal why they decided to pay only for three years or whether the IRS could require further payments or criminal penalties.

Councilman Walt Stanckiewitz, who uncovered the problem when he asked his accountant how to handle his city income, said he wants to go public as soon as possible.

"My intent is that at the next City Council meeting we raise the veil and let the people see," he said, suggesting that the council waive attorney-client privilege.

That requires the consent of his colleagues, however, and those who could be reached were more guarded.

"The council decided to take this into closed session with the advice of the city attorney, so we'll do it," Mayor Maryetta Ferre said. "We will go through the correct process, and we'll do it transparently."

Ferre declined to predict when closed sessions would end or to respond to Stanckiewitz's suggestion.

At the Aug. 24 council meeting, Tom Schwab, the city manager and finance director, suggested that Stanckiewitz magnified the issue as part of his political campaign. Stanckiewitz is running for mayor; Schwab is running for City Council.

Grand Terrace "never reported it as wages, and I don't know any city that reported it as wages," Schwab said.

However, local cities - and Schwab's former employer, Porterville - all report council wages using either IRS forms W2 or 1099.

Schwab later said he had never looked into the issue but would have dealt with it if there had been any question.

"We were audited every year by our auditors, and they never brought it up," he said.

Closed Doors, Lies, Profesional Liability and Fuduciary Responsibility of Schwab, Harper, and Council Members Past and Current.

Gramps Says:

The IRS PAYS for INFORMANTS on People who don't pay their taxes. I think the Franchise Tax Board may also have a reward system. So folks it is time to get a copy of the minutes and file a report of unpaid taxes at both the State and Federal Agencies. Not for 3 years but for 30.

Schwab and the City Attorney hold the professional and fiduciary responsibility for the legality of the actions of the City of Grand Terrace and it should be their necks on the line along with the former and current council members who avoided paying taxes or reporting the income vs expenses on their tax forms.

If there is an employer contribution to FICA SSI and SDI there are some of these taxes that the employer pays into and the employee pays into. Will the Council Members be audited 7 years back like we peons would.

As far as the "Confidentiality Agreement" some one needs to get a copy of that to show the Citizens of Grand Terrace just what the Council Members Agree not to disclose to the public. In addition the "Confidentiality Agreement" that Tom Schwab and Steve Berry signed upon their termination and their entire payout for their terminations should also be made public. We have had enough of those closed doors being used when they "May" rather than "Must" be.

Schwab has already been proven a serial falsehood teller, he said in the San Bernardino County Sentinel, that he had worked for just 2 cities prior to Grand Terrace and neither of them paid taxes on stipends. Porterville was one of his past employers and they paid taxes. Next lie Mr. Schwab... we are waiting.

If it were not for the honesty of Walt Stanckiewitz wanting to abide by the tax laws this would be just another horse trade that Schwab would have allowed to go un-detected, un-changed, and be damn with the liability of the Council Members, and Citizens past and present. The thought of him on the City Council should make the Citizens of Grand Terrace wretch with heaves that start so deep in their guts their toes cramp from the effort to purge his poison from our collective system..

Mr. Schwab, you hired the "Auditors" that let the non payment of taxes continue year to year to year. Their report says "No Significant" problems. That statement is in itself an admission on the part of the Auditor there are problems, that they are aware of but are not bringing out to the light of being included in the audit report. You would know this if you spoke Accountantees.

In Boo Hoo Bea's World

In the Contra Costa Times Article Bea Cortes said one of her qualifications or attributes that should be attractive to the Grand Terrace Voter is her appointment to head SANBAG.

Don't let her pull the bag over your heads. Her elevation of status in that organization was in no doubt an effort to give her a resume boost as the other members know she is on her way out. They may have done this to be nice to Ms. Boo Hoo who had her feelings crushed by a citizen's disapproval of her performance on the City Council, or she may be pulling or threatening to pull strings like she did to Jim Miller. Could it be that she has threatened to Miller all or some of the other members of SanBag?

We'll never know... the truth,.. That is why she should not be on the City Council of Grand Terrace or any other position that comes with it as our representative. It is time that Cortes and Schwab ride off into the sunset and take their horse-trades, and political string pulling with them. Grand Terrace should arise above that sort of contemptuous conduct.

Sylvia Robles is the only one running for that seat who seems to have the best interest of Grand Terrace Citizens in the forefront of her mind and efforts.

Stanckiewitz In the NEWS...............

Stanckiewitz Seeking Elevation To Mayoral Slot

San Bernardino County Sentinel

Friday, September 3, 2010

Councilman Walt Stankiewitz, who was first elected to the Grand Terrace City Council in 2008, is upping the political ante, vying for mayor in this year’s election.

Stankiewitz hopes to succeed Maryetta Ferré, the mayor for the last four years who is not seeking reelection and retiring at the end of the year. Stankiewitz is being opposed by planning commission chairman Doug Wilson, Sally McGuire, and Denise Centy-Sternberg.

Stanckiewitz said he believes there have been major errors and shortcomings in the way the city has been run in the past and is particularly critical of the managerial practices of former city manager Tom Schwab and the willingness of past city councils to allow him to run the city without what Stanckiewitz said is proper oversight. Schwab, who retired from the city last year, is now seeking a position on the city council. So, though Stanckiewitz and Schwab are not running against each other, both are carrying out electioneering efforts where they at least appear to be campaigning against one another.

Stanckiewitz listed “maintaining a balanced budget while paying off the $4.6 million debt due to systematic ‘borrowing’ for nearly 20 years from the redevelopment agency with no intention by our past city manager to pay it back” as the major issue facing the city.

The solution to this challenge, Stanckiewitz said, “is open and transparent government that involves public discussion of the issues and solutions along with the ‘hands on’ involvement of the mayor and city council.”

Stanckiewtiz said the city further needs to come to terms with “the lack of viable commercial development for over ten years and a lack of youth activities, programs, and facilities.”

Stanckiewitz says he represents a superior choice to serve as mayor because of his nearly two years of experience on the council gives him a better understanding of how City Hall functions and “My large and small business employment experiences give me a business perspective on operating the city.”

Stanckiewitz said, “My vision for the city differs from my opponents in that I believe we must acknowledge the mistakes of the past in order to move forward. Positive results can be easily destroyed by old habits.”

While Stanckiewitz said he is interested in progress, he said there is no need to aggressively develop the city and disrupt the comfortable tempo of life residents currently enjoy. “Grand Terrace is nearly built out,” he said. “Our population growth will be minimal. However, there will be significant growth around our small town.”

He said the city must endeavor to put the proper infrastructure in place to avoid the onerous impacts from the aggressive development he anticipates will take place just beyond the city limits.

Where develop inside the city will occur, it will generally involve mercantile and business operations, he said. “I am in favor of smart well planned commercial development with the emphasis on maintaining our small town, village environment,” Stanckiewitz said.

The infrastructure improvements that should be prioritized, he said, include, “streets, sidewalks ,and storm drainage. We need to facilitate the traffic flow along Michigan Street due to completion of Grand Terrace High School.”

Recently, the tension between Stanckiewitz and Schwab manifested with a public confrontation

at a recent council meeting where the subject of the city having failed to pay federal payroll taxes on city council members’ and planning commissioners' monthly stipends over the last three decades was raised.

The Internal Revenue Service maintains that elected and appointed officials are city employees and as such are subject to federal payroll taxes. Schwab, who had been the city’s finance director before he was city manager, had contended that council stipends were not wages.

The council stipend, Schwab said, was in reality nothing more than compensation for the expenses council members accrued while working on city business, and the amounts members were paid just barely covered the cost of travel, phone usage, internet access, photocopying and the like.

Grand Terrace council members are currently paid $250 a month for their service on the council, which normally entails two meetings. They also receive $150 a month for attending the city's redevelopment agency board meetings, which are held during the council meetings, They are provided a $200-a-month car allowance. The cost of travel to and accommodations at conferences they attend in the capacity of representatives of the city are also reimbursed.

Schwab said that under his guidance as city manager and in the years prior to that, under former city manager Seth Armstead, “The city just didn’t consider that to be wages and it was never reported as wages. It merely offset their expenses. They could have reported it as income if they chose to do so, but the city did not.”

Stanckiewitz begged to differ, stating that Schwab needed to “look at a dictionary under the word stipend. It is not an expense. It is pay." Accordingly, in a rebuff to Schwab and a repudiation of his policy as city manager, the city council last week voted to make $14,000 in payments to the United States Treasury to cover three years of the unpaid payroll taxes related to payments to the city council and members of the planning commission, who are given a $50 per month stipend.

According to Stanckiewitz, a certified public accountant has told city officials that the city needed to pay payroll taxes related to its elected and appointed officials.

Schwab said Stanckiewitz is grandstanding on the issue and seeking to use it as a political cudgel to vault into the mayor’s post.

Stanckiewitz said there is more to the issue at stake than his own political advancement. He said he believes he can be cooperative and work with the remainder of the council, but that being cooperative does not mean that he will compromise on his principles.

“Building consensus with other members of the council can be achieved by open and honest communications,” Sanckiewitz said. “We all do not need to be in agreement before the issue is discussed. Each member should be committed to determining what is in the best interest of the residents on any issue.”

Stanckiewitz, 60, was born in Munich, Germany of US Military parents. He graduated from Wilmington High School in Wilmington, Illinois and obtained a bachelor of arts degree in sociology from Southern Illinois University in Carbondale Illinois. He served six years in the United States Army, achieving the rank of captain. He has owned and operated the La Pasta Italia restaurant in Grand Terrace for over twenty years and has lived in Grand Terrace for three years.

He and his wife, Monique, have one child, Lindsey, age 22.

Grand Terrace Political Round UP...

4 run for Grand Terrace mayor, 6 seek council seats

Ryan Hagen, Staff Writer

Contra Costa Times

http://www.contracostatimes.com/california/ci_15996961

Posted: 09/04/2010 10:32:36 PM PDT

GRAND TERRACE - Experience and transparency are emerging as major themes of the elections in Grand Terrace.

Four candidates are running for mayor, four for the City Council seat held by Bea Cortes, and two for the remaining two years of Jim Miller's council term, which he resigned in March before pleading guilty to charges related to voting with a conflict of interest.

Against that backdrop, several candidates contrast their approach with what they call years of mismanagement by former city manager and finance director Tom Schwab.

Schwab resigned in 2009.

Now, he says his unique understanding makes him the best-qualified for Cortes' seat.

"I worked for the city for 24 years, and I've made some mistakes to go along with the good things I've done," Schwab said. "I have more experience, have the ability to help them maintain our policies, particularly through the redevelopment agency. Nobody understands the redevelopment agency as much as I do."

Schwab's record plays heavily into the mayor's race.

"There's just so much that has gone on in this city kind of under the radar that I don't think residents are aware of, and this stuff needs to stop," said mayoral candidate Walt Stanckiewitz, ticking off issues he said Schwab handled sloppily in recent years: borrowing money from the redevelopment agency, resulting in $4.6 million in debt; no taxes paid on stipends for council or planning commission members; donating a scoreboard without seeing if a park needed it.

Hands-on management would prevent many of these missteps, said Stanckiewitz, who owns La Pasta Italia restaurant and was elected to the City Council in 2008.

"You have to ask questions and dig a little deeper than the surface," Stanckiewitz said.

Planning Commission Chairman Doug Wilson, another mayoral candidate, said the city deserves a full-time mayor with deep local understanding.

"I don't want to dismantle the operation, I don't want to rebuild, I want to build on what's good," said Wilson, who has been involved in the construction business for 40 years.

Wilson said the transparency issue was overblown, as City Council and Planning Commission minutes are available online. He said he encourages people to speak at Planning Commission meetings and often waives time limits.

Sally McGuire said she would make a good mayor because her experience as president of the Grand Terrace Chamber of Commerce and diverse volunteer organizations would help her harmonize sometimes disorganized community members.

"I think I'm good at building relationships," she said. "I think we need to reinforce some of our volunteer organizations."

Denise Sternberg said her 20 years of real estate experience would help her plan where stores could go without driving each other out of business.

"It's important not to have everything overlap: church on top of church and doughnut shop on top of doughnut shop, so they choke each other out," she said.

Cortes emphasizes her experience as she fights to maintain the council seat she first won in 2002.

"The reason I'm running is to continue all my work in strengthening the Grand Terrace economy," Cortes said.

She said she has brought development and name recognition as the first representative of Grand Terrace to serve as vice president of San Bernardino Associated Governments, a transportation planning agency that allows her to lobby for the city in Sacramento.

The position would not transfer to her successor if she were defeated.

Council candidate Bernardo Sandoval, director of technical relations for a regional health care provider, said the city needs clearer measurements and checks for officials and developers.

"We need to hold people accountable," he said. "What are the commitments, what are the performance metrics, who's responsible. Make that clear to everybody - this is what you can expect for your tax dollars."

Richard Loder said the council favors businesses over residents or sports fields, because none of its members have young kids.

"I'm a family man," said Loder, a business owner and member of the chamber of commerce. "In my experience, the city always voted for business, because they're so concerned about revenue coming in. I'm really big on everyone being heard, respect for everyone."

Sylvia Robles is pushing to finish Miller's term to simplify government.

"We need to change the paradigm, and stop having cities compete for sales tax revenue, because what that is doing is wasting scarce fiscal resources," said Robles, an outspoken critic of inducements paid to Stater Bros. and to rebuilding efforts run through the redevelopment agency. "It's been empirically proven that RDAs do not create jobs or sales tax."

Darcy McNaboe also is contending for the two-year position, arguing that her roles on the Planning Commission, chamber of commerce and various businesses will help her bring groups together during tumultuous times.

"There are a lot of people in our community that are willing and able to pitch in," she said. "It's just that there's not a lot of coordination of the effort."

She also would aim to attract new businesses to raise tax revenue.

Stater Bros Press Machine at Work...

Grocery chain to build own retail plaza

STATER BROS.: The Grand Terrace shopping center will become one of 40 owned and maintained by the company.

09:27 PM PDT on Thursday, September 2, 2010

By TIFFANY RAY
The Press-Enterprise

Stater Bros. is building a shopping center in Grand Terrace that will include a 43,000-square-foot supermarket and additional retail space for other tenants.

It will be among dozens of shopping centers owned and managed by the San Bernardino-based company, an unusual business model among grocery chains.

Jack Brown, chairman, and CEO of Stater Bros. Markets, said the company already owns about 40 of the shopping centers it operates in, and manages about 50 others on behalf of the owner. The company also handles development and construction of new stores in-house.

Skip Crane, senior vice president of Grubb & Ellis Retail Services in Ontario, said Stater Bros.' in-house real estate development may help keep costs in check, and taking ownership of the centers is a way to ensure they are clean and well maintained.

Stater Bros.' business model is similar to a formula previously employed by Safeway, Crane said, but it's a rarity among other chains. "Stater Bros. is more unique in the grocery industry in that respect."

David Livingston, a grocery industry consultant based in Wisconsin, said there are other grocery chains that own shopping centers but they are more likely to lease store space.

Owning and developing the property means you can call your own shots, Livingston said, but it is expensive in the short-term, so it could restrict the pace of growth. Most grocery chains are publicly held and have to worry about short-term profits, whereas privately held chains can manage for the long term.

Stater Bros. is privately held. It is purchasing 8 acres for the $17.5 million Grand Terrace center, a project Brown said the city brought to him as early as 2001 when Stater Bros. was still headquartered next door in Colton. Since then, land and construction costs have escalated, he said. (Brought to him by Schwab/Jacobsen)

CITY INVESTS $1.2 MILLION

The new store will replace an existing 26,000-square-foot Stater Bros market, offering a full-service deli, hot bakery, large fish and floral departments, a pharmacy, expanded produce and meat departments and wider aisles, Brown said. It will make better use of natural light during the day, cutting down on energy use.

The city has agreed to contribute $1.2 million to the project over five years in exchange for a guarantee the store will generate at least 140 construction jobs and will employ at least 77 people full time. The new store is expected to generate $105,000 a year in additional property tax revenue, and 22 percent more in sales taxes than the current store. ( that is under 200.00 more sales tax revenue to Grand Terrace).

Brown said the city would recoup its investment in less than five years.

Brown said the company has not determined how much additional retail space will accompany the store. Work will begin once permits have been obtained, he said.

The grocery store is scheduled to open in October 2011, which is Stater Bros.' 75th anniversary month.

"We'll probably have signs on the property very soon announcing we're coming," Brown said.

The company has operated in Grand Terrace since 1974.

Stater Bros. has 167 stores and more than 19,000 employees throughout its footprint. The company's 2009 sales totaled $3.77 billion.

Reach Tiffany Ray at 951-368-9559 or tray@PE.com.

Why All Of The Sudden: 5 Plus Years

Many letters to the Editor in the Grand Terrace City News will say "why all of the sudden is all this bad news, or controversy or distressing news coming out about City Hall and the past Schwab/Berry Administration.

Well, readers of this same blog often start out saying why are you so negative about what is going on in Grand Terrace. This can't be true if the issues haven't been heard of before this.

Well, this it the truth of the matter. Citizens have been addressing their concerns and issues with City Hall at City Council Meetings. Those issues were voiced and then forgotten. Most Citizens don't watch or attend City Hall Meetings. The Press does not cover the City Council Meetings well. So the information was hidden by virtue of the process and intent of the City Manager to obscure the free flow of information and transparency of the horsetrading he was doing behind the closed doors.

This blog has been the repository of many of those citizens work and labors at digging out the information. Thus this blog has been a pain in the side of Schwab/Berry for years. If a citizen or news agency wanted to know now the information was recorded and available on line.

The city's web page at the time of the beginning of this blog did not contain Minutes, or Agenda records. Nor did it offer any documents on line, or the Council Packet information. Much has improved in terms of information available to the public from the City's own web page. In part this improvement came about because if the Blog could do it, the City Could.

The blog makes no money, and it costs zero to put it on the web other than the labor and efforts of the citizens who bring issues to the City Council. These people give their name and address at City Council Meetings, and they are not heard by the council, but put it on the blog unsigned, and all of the sudden it can't be so because there is no name associated with the post, or the blog. HA!

Grand Terrace can be a great place to live and do business. However, the City Hall has been run like a Kingdom with Knights and Ladies given special privileges due to class or political position. It is time that era is ended and cleaned up. It may have taken Walt Stanckiewits some time to get his Light Bulb Goes On Moment, the Miller arrest flipped the switch. Thank goodness that he began to see clearly what was and is behind the stench in City Hall. Years of Schwab/Berry horsetrading and lackadaisical management for the benefit of a few select individuals and developers has finally been declared unacceptable. The other council members are party to the stench or they have no light bulb to go on. The Triad still are defencive and supportive of their excesses and past errors.

Sure we have to go forward from the point where we are. But, future development and RDA transactions should be done in the open, and not excessively supported by the taxpayers.

Schwab entrapped Miller with the city taking adds in the Grand Terrace City News. Schwab hire Steve Berry and Bea Cortes may have been the ones to trigger the trap, but it was Schwab who set Miller up.

Schwab entrapped all council members by not paying taxes or deductions on stipends, (there are employee and employer shares on those payments). Schwab over paid RDA stipends, in the past so will that mean the RDA members who were overpaid will have to retroactively pony up the over payments?

Schwab made the staff recommendation that the RDA house was sold to the City and the City provide him a house. There was no reason that the City Council would have known he was homeless and needed a home because he was getting a divorce. He already lived in GT with his wife and family just prior to the "Need" for a house.

We don't need Schwab on the City Council. We need to purge ourselves of his management style and decisions where ever possible. Let's hope more of the past City Council Members are not threatened with felony charges for the miss deeds he directed or involved them in.

After reading the blog this AM I am sure that zero of the residents of GT will complain. After all, they got exactly who the majority of residents of GT wanted as mayor. Can't take back your vote, nor install another person right now to act as mayor. How many have a bumper sticker or lawn marker proclaiming "I proudly voted for...."

Between City and Stater Bros: Public Keep Out of IT.

Mayor Ferre cuts off public comment.

Neighbors of the project also criticized aspects of the project, such as the 6-foot wall designed to separate their houses from the Stater Bros.' noise and lights, but Mayor Maryetta Ferre said that wasn't part of the night's agenda.

"The (Town Square) project has been approved," she said. "The wall falls under that project. I'm going to leave that to (Powers) and Stater Bros. to work out. For tonight, this is strictly between the city and Stater Bros."

Here is the problem with that thought. If Stater's was so cash strapped to NEED to get 1.23 Million Dollars from cash strapped little Grand Terrace there was a last chance for the City Council and the Redevelopment Agency to say that there would be no additional taxpayer support for the building of a Stater Brothers. For those where are financial conservatives they would be satisfied. If Stater's refused to build without taxpayers funds then the folks wanting a better environment for their neighborhoods would also win. But, clearly the Triad on the City Council had no need to hear the public the decision had already been made.

"This is strictly between the city and Stater Bros"... public has no say so or additional input... in the faint hope of changing a council members mind, prior to a vote.

If Jacobsen over charged Stater Brothers 1.23 Million for the property or the total price of the "Deal" then that should have been resolved between them and not subsidized by the Grand Terrace Tax Payers.

Will the city have a city employee in the store keeping check on the 77 full time jobs or equivalent number of part time employees who will work with less benefits and at a lower wage? Will the city have a construction inspector to insure that 140 people are working on that site on the day it starts construction to the day it is finished? How do we know these are NEW Construction Jobs or Workers not "OLD" Workers? Staters owns its own construction company or didn't the City Know that?

The city should allow local restaurants to cater the construction site. Their businesses will be going down as soon as the Stater's Deli is open.

Well, it is a high price to pay to have a store come make money off of the community. It would be better if the City Planning Department found a business for GT that created product and sold it out of GT. This would generate REAL income increases for our community and local businesses.

Oh now that we know what Stater's is getting out of the deal from the city, will the existing shopping center be given an equal amount of funds to upgrade their facility? Perhaps a solar parking lot? So that their occupants have a lower energy bill could be purchased for about that amount of money.

So what happened to the right of the people to speak in Grand Terrace? I guess you have the right to speak but that is not the right to be heard and your issues considered or answered.

Read more: http://www.sbsun.com/breakingnews/ci_15967316#ixzz0yMrEiEU0

Stater Bros. wins OK to build store in Grand Terrace

By Ryan Hagen, Staff Writer

Posted: 09/01/2010 09:40:02 PM PDT

GRAND TERRACE - The City Council, at a special session Wednesday evening, unanimously approved a controversial and long-debated agreement with Stater Bros. to build a new store.

The city will pay the store developer as much as $1.2 million over five years, $962,500 of which is tied to Staters Bros. maintaining the equivalent of 77 full-time employees.

City staff predict tax revenue of $35,000 per year for the general fund and $70,000 per year to the Redevelopment Agency, although Joyce Powers, the city's community and economic development director, emphasized that property tax should increase when other businesses enter the Town Square, which will feature the Stater Bros. as a centerpiece.

She said businesses have shied away from the square because of the economy and the lack of a prominent store to attract business.

Jack Brown, chairman of the board and chief executive officer of San Bernardino-based Stater Bros. Markets, estimated his store will generate nearly $800,000 a year in sales tax that will be distributed to state, county and Grand Terrace coffers.

Some residents, including City Council candidate Sylvia Robles, argued that the city will pay more in economic inducement than it will gain from the store.

"I fully support Stater Bros.," Robles said. "I personally do not think Stater Bros. needs a taxpayer handout. It's a profitable enterprise."

Others said the store, which has been in the works for 10 years, was long overdue.

"Every city, every town, needs to have a big store as an anchor," said resident Thelma Winkler-Beach. "Staters is our anchor."

On Aug. 24, Mayor Pro Tem Lee Ann Garcia was ill and did not attend the regularly scheduled meeting when the issue was originally on the agenda.

Councilman Walt Stanckiewitz, who recused himself because his La Pasta Italia restaurant is within 500 feet of the project, forced Wednesday's meeting.

Neighbors of the project also criticized aspects of the project, such as the 6-foot wall designed to separate their houses from the Stater Bros.' noise and lights, but Mayor Maryetta Ferre said that wasn't part of the night's agenda.

"The (Town Square) project has been approved," she said. "The wall falls under that project. I'm going to leave that to (Powers) and Stater Bros. to work out. For tonight, this is strictly between the city and Stater Bros."

Resident Vince Bartman questioned that any development was better than the existing vacant field.

"You put up Stater Bros, with all that light pollution, you're going to take away my stars," he said. "You're going to take away my view of the mountain. That's all we have for nature in Grand Terrace."

ryan.hagen@inlandnewspapers.comRead more: http://www.sbsun.com/breakingnews/ci_15967316#ixzz0yMqNhjU

Walt Stanckiewitz Supporters on the Record

Need fresh start

We are committed to our vote for Walter Stanckiewitz for mayor of Grand Terrace. We sincerely believe Walt is the best candidate for mayor.

We also feel it is time for changes for council people. It's time for new and fresh ideas - out with the "old," in with the "new."

Times have been tough for our city - scandal, and political motivated charges, the "old" council didn't support one of their own, with the exception of Walter Stanckiewitz.

Come on, Grand Terrace, let's start fresh and give our new mayor and new council a chance to make things right.

WALT and LEE KURTZ
Grand Terrace

http://www.sbsun.com/letters/ci_15935421

Carved in Stone, Brown now Mosses?

What is not carved in stone is the Bribe or INDUCEMENT STATER'S is being paid to build in GT. Now it is up to 1,230,000.00 of TAX PAYERS MONEY. THAT's 1.23 MILLION FOLKS...

IS THAT A SCHWABTASTIC NUMBER OR WHAT?

Few issues resolved over Stater Bros. site in Grand Terrace

Ryan Hagen, Staff Writer

Posted: 08/31/2010 08:09:11 PM PDT

GRAND TERRACE - City staff, representatives of Stater Bros. Markets and residents met at Stonewood and La Paix streets Tuesday evening to contemplate an imaginary wall dividing a proposed store.

It's a store many believe will bring in valuable jobs and city revenue while residents say the development will ruin their views and their sleep.

Residents gathered behind the proposed Stater Bros. market with questions and complaints about the six-foot wall, truck delivery hours and other issues they wanted solved before the City Council votes on the project at 6 p.m. meeting today.

After an hour and a half, most residents had returned home with a few answers but without altering the proposal.

Joyce Powers, city community and economic development director, said many of the issues were already set in stone.

"They've already evaluated whether or not they can relocate the wall based on the grade and existing utilities, and they can't (put it anywhere else)," she said. "We are still working on the landscaping in front of it."

The four feet of trees, vines and bushes in the current plan is far from the pocket park that resident Cynthia Bidney wanted.

"Every morning, from my front door right there I just take a deep breath because it's so beautiful," she said. "Now they want a wall and trucks delivering 7 a.m. to 10 p.m. Monday through Sunday?

"We're not opposed to Stater Bros.. We're willing to negotiate, but nobody's giving anything."

Resident Greg Gardner, a former contractor and truck driver, said he knew from experience that the project would disrupt the neighborhood.

"A six-foot wall is just tall enough that you'll still hear the trucks, you'll still see the exhaust pipe spewing stuff out, but you won't see the truck," he said.

It would be nice if We had a THINKING COUNCIL

Jack Brown has in his power the ability to fill the City Council Chamber with employees who will mouth their support for the Building of the "New and Improved" Stater Brothers, and even support the City providing taxpayer's support of over 900,000 in "Incentives" to Stater's to build a store.

Fearing for their jobs some of the same people have said, sure they like the idea of the store, and the possibility of more work in Grand Terrace, however, they don't really support the idea of the City Paying Stater's any tax money as a bribe or inducement to build a bigger store. Of course they can't say that in public it would be their jobs to do so.

So it is not how many people show up that should determine the action of the City Council, it is what are the facts. Fact, Stater's should build like any other business at their own risk. If money is provided to Staters, others will qualify for the same support, that means more debt for GT Taxpayers to have to pay back, in one way or another it bites the taxpayer.

The claim that the "Added Sales Tax Revenue" will justify the 900,000 incentive has been proven to be fiction and not a justification for the expenditure and assumption of the debt. So what will it be City Council, more DEBT... a BIGGER HOLE for the RDA/City to dig out of?

The burden of the finances for the development should lie with and between Jacobsen and Stater Brothers. These were and are the principal drivers behind the effort to consolidate and develop that land. The citizens and City should no longer be their patsy, by offering them an "Incentive" to do the business they were determined to do in the first place.

Is the RDA in the financial position to offer every business in GT 110 Percent of their expected annual sales as an "Inducement" to do business in GT? Where does that line form, a lot of folks will stand in it.

Jocbsen/Stater's and the RDA/GT City

The land deal and building plans of Stater Brother's Market have been assisted by the Schwab/City/RDA sufficiently to this point and time. The land was acquired under the threat of eminent domain and or limited to a single purchaser (Jacobsen). The property owners were coerced, pressured and at times threatened to get off that land.

Now that the land has been acquired, Jacobsen and Stater.s are looking for additional help in building on the land. If Stater's needs 900,000.00 to build on the land to break even it could be said that the price Jacobsen is charging Stater's is too high, and Stater's should be looking to that negotiation not the RDA or City or Tax Payer to off set an inflated land price.

Why is this reasonable. All property is artificially inflated in its value when the RDA/City provides funds this way. Then it makes other businesses try to acquire property at the inflated costs and they don't get the same RDA Support. Or worse, they do get the support and the Tax Payer is supporting the bloated Real Estate Market.

Only Bankers and Realtors benefit from a bloated Real Estate Market.

Stater's is welcome in GT. But they should build on their own dime, and if the deal in total is too costly, they should look to Jacobsen to lower the cost of the land, not the City or RDA to make building less expensive or support them with RDA funds or City Fee Adjustments.

If a big business like Staters can't afford to pay city fees, then all fees should be lowered for all businesses, including existing businesses. If a code is waived for Stater's it should be waived for all businesses.

Citizens have had enough of Designated Favorates getting special treatment by the government at all levels.

Sylvia Robles

Candidate, Grand Terrace City Council

PRESS RELEASE August 30, 2010

FOR IMMEDIATE RELEASE

For More Information Contact: Sylvia Robles, 951-334-4104

Over 50 supporters gathered at Taco Village Mexican Grill last evening to officially kick-off the city council campaign of candidate Sylvia Robles, who is seeking the un-expired term of former Councilman Jim Miller.

The event was filled with lively discussion on city issues and making of new acquaintances between supporters. Guests enjoyed hot appetizers of taquitos, flautas, enchiladas, rice and beans and of course the traditional chips and salsa.

Candidate Sylvia Robles, discussed her goals to see that Grand Terrace utilizes the limited land it has left for the social and fiscal benefit of its’ citizens. She explained her personal motivation for seeing to it that Grand Terrace expands it library services, fulfills the need for little league ball fields, and restores organized youth recreational activities.

Of equal importance is the quest to end the culture of secrecy in city government. She discussed in detail her concerns since completing her graduate studies of local government abuse of Redevelopment Agency (RDA) powers. Mrs. Robles found it incredible that incrementally the past mayor and council placed the entire City of Grand Terrace in the Redevelopment Agency boundary. This is conditioned on declaring the entire city blighted. It also creates an incentive for the city to enter into commercial capital development and risky financial ventures best left to private investors.

Reputable “think tanks” such as the Public Policy Institute of California, have proven that redevelopment activities do not increase tax revenues nor create jobs. Redevelopment activities create huge debt. The costs of borrowing to entice development are exorbitant and have contributed to California’s budget crisis and the decay in local government illuminated by the recent City of Bell scandal.

Mrs. Robles affirmed her support for a new Stater Bros. Market, but not for the extension of the current inducements from the City of Grand Terrace. Mrs. Robles challenged those who said such sentiments were anti-business. Mrs. Robles, further explained how the current city culture operated with little substantive information provided by staff, allowed and encouraged the lack of transparency and avoided educating citizens via the media and or any other city efforts.

If the citizens understood the complicated RDA debt process and expenditures, said Mrs. Robles, they would show more restraint in encouraging projects that actually cost the taxpayers. They would hold the Mayor and Council suspect for actively pushing and rushing to approve the development agreement with Stater Bros. Markets. There has been little public education of the costs or perceived benefits to the general public.

Mrs. Robles shared with her supporters her shock to recently discover that projected increased sales tax revenues were insignificant. Promised new sales taxes could range from $7,000 a year to a low of $181.00 dollars. The jobs promised are part-time and as is customary in the grocery business, likely permanent part-time positions. Mrs. Robles summarized that the RDA Stater Bros. Market project, if approved, will cost taxpayers $1.23 million over five years and will generate only $105,000 annually in new property taxes; factoring interest costs could further negate how much actual new revenues the city would realize.

Mrs. Robles questioned how we could provide an expanded library, ballfields youth services and more parks with no meaningful increase in revenues. She re-stated her motivation to educate citizens on Redevelopment agency abuses, to work for a more open government and to move the city to a culture of leadership that serves citizens not private enterprise first.

Guests included: Councilman and Mayoral candidate, Walt Stanckiewitz and his wife Monique, council candidate, Bernardo Sandoval and his wife Francine and Mayoral candidate Sally McGuire and her daughter. Mike Morrell, Assembly Candidate and Republican nominee for the 63^rd District (which encompasses the City of Grand Terrace) was in attendance with his wife Joanie. Among other notables were, Frank and Eloise Reyes, Ms. Reyes is a resident of Honey Hills and an attorney. Her husband Frank is the Director of a foundation associated with Arrowhead Regional Medical Center. Dr. Tom Rivera, Cal-State Professor and his wife Dr. Lily Rivera, also long-term Grand Terrace residents attended in support. Dr. Tom Rivera is a finalist for a seat on the California Redistricting Commission. Colton School Board member Mel Albiso with wife Diane, Ray Abril Jr., former Colton school board member came to show their support and fidelity to Grand Terrace. Mel Albiso has pledged his continued full support to complete the new high school in our city and work to fulfill the amenities promised. Mr. Ray Abril Jr., is honored by the residents support to include him in the naming of our high school and enjoys the friendships made during the high school naming controversy now behind us.

Grand Terrace residents included Richard and Lucia Negrete, Danny and Cynthia Felix. Conrad and Michelina Castell, Ken and Cindi Bidney and Jo Stringfield who have lived in Grand Terrace over three decades. Rosalie Orrick, a strong advocate for library services, Delia Mendoza, a resident of Blue Mountain Senior Villas and the proud parent of one GT’s assigned sheriff’s deputies also came out to show their support. The Grand Terrace City News was also in attendance represented by publisher, Margie Miller and her husband former Grand Terrace City Councilman, Jim Miller.

Sylvia Robles Candidate for City Council City of Grand Terrace

Contact: (951) 334-4104

PRESS RELEASE

FOR IMMEDIATE RELEASE August 30, 2010

The City of Grand Terrace in an email communication between Grand Terrace resident Cindi Bidney and City Clerk Brenda Mesa indicates that the city has no plans to televise the special meeting to approve a development agreement between the City Redevelopment Agency and Stater Bros Markets.

The City was unable to consider the development agreement at the last regularly scheduled meeting, Tuesday, August 24, 2010, due to lack of a quorum. The City of Grand Terrace has a vacant council seat. Councilman Walt Stanckiewitz has been unable to participate due to the City Attorney’s ruling he has a conflict of interest. Councilman Stanckiewitz, with the assistance of the City Manager and other city staff have prepared a packet of information regarding the pending agreement with Stater Bros Markets. This action is to determine if Councilman Stanckiewitz does in fact have a conflict of interest and to decide whether or not he should be cleared to act on this agenda item. They are anticipating a timely review by the attorneys with the California Fair Political Practices Commission, which regulates and enforces the conflict of interest code for elected officials.

The meeting to approve the Stater Bros development agreement is a special meeting, customarily used for emergency business.

The Mayor and Council-members Bea Cortes and Lee Ann Garcia are the only ones that can act on the agenda in relation to the Stater Bros agreement.

Mayor Ferre is stepping down when her term ends in December 2010. Bea Cortes is facing three opponents for her seat in this November 02, 2010 election.

It is the viewpoint of city council candidate, Sylvia Robles, that the calling of a special meeting for non-emergency agenda creates an undue burden on citizens who have set their schedules to the normal council meeting times and dates in order to participate in city government. The fact that another member not facing re-election, according to Mrs. Robles, could possibly act on the matter is another important reason to re-set the meeting the next regularly scheduled council meeting date.

Dear Pa,

In the SB Sentinel this week, Tom Schwab said that ". . . his twenty-five years of overseaing the city's finances and operations gives him a more comprehensive understanding of the fiscal reality facing the city than anyone else in the race or currently in office."

Let's see . . .

Is it payroll administration and tax knowledge? NO

Is it the ability to balance the General Fund budget without "borrowing" from the RDA? NO

Is it using the RDA to bring the Outdoor Adventure Center to reality? NO

Is it knowing how to systematically inflate his retirement salary at tax payer expense? YES!


You be the judge. Can Grand Terrace afford Tom Schwab's return?


A GT Resident

Answer from GrandPa:

Dear Resident,

Grand Terrace Can Not afford Tom Schwab's return, or a continuance of his faulty Administration and Management practices. It is earnestly hoped that Betsy Adams and a new Mayor and council members, will continue to scrub and clean up the mess left behind by Schwab/Berry and others. Let's hope it can be done with out GT having to be in Chapter 11 or 13 of the Bankruptcy Court. It would help if the city could have the high retirement package Schwab snarled for himself reviewed by the State and Federal Agencies to see if it can be reduced to a proper amount.