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Community organizers demand oversight of stimulus funds

by Raoul Kleven, published on March 19, 2009 at 9:24 PM

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Community Organizers called for increased oversight of the spending of national stimulus funds in Sacramento this Wednesday at the Green Living Center in Sacramento's Boulevard Park neighborhood. The organizers were a small group of real estate developers, members of nonprofit organizations, and others who had gathered to discuss the formation of the Economic Opportunity Commission, a group devoted to using funds provided by the stimulus to develop Sacramento's poorer neighborhoods.

Jim Knapp, a longtime community organizer and Director of Development at the nonprofit organization Build America, said that such an organization was necessary to combat corruption in the city's handling of stimulus funds. Knapp inveighed against the close connections large developers have with city government, saying that it allowed graft and criminal circumvention of regulation on a large scale. He said that a small group of developers, including David Taylor and Angelo Tsakopoulos, had become billionaires over the past two decades by exploiting their connections to city government.

Knapp called a recent city council decision to give David Taylor $10 million dollars for the construction of three bars on K street "obscene." He went on to say, "We can't get them (the city council) to allocate money for homeless services, for transitional housing, for neighborhood job programs, for youth, but they will give $10 million dollars of redevelopment money away for bars."

Cline Moore, a local businessman and Executive Director of Build America, also commented on this decision, saying that it "takes normal market forces out of the picture and says, this person gets a hand up, a favor, because he's the city's golden boy." He described the city council as a "rubber stamp" that ignored the opposition from local business owners to the subsidy of Taylor's developments.

Both Knapp and Moore stressed the importance of keeping political pressure on the city government, saying that the EOC would be committed to "keeping their feet to the fire," to prevent further abuse of power by the council and others.

Moore said that the EOC would be an inclusionary group that would include green building firms, youth groups, homeless programs, elder care, and other interests. By combining these interests to lobby together, Moore says said they would be more effective at creating sustainable urban development guided by "a policy-driven, research-based plan."

According to Moore, "Sacramento is one of the regions hardest -hit by the housing crisis." He cited the hundreds of foreclosed and vacant properties in the Oak Park, Del Paso Heights, and South Natomas neighborhoods and went on to say, "These areas have been targeted for rehabilitation by SHRA." However, Moore then said that the SHRA plan neglected several vital issues related to what he called "neighborhood stabilization," a key phrase at the meeting.

Moore said "Neighborhood stabilization is not just about building houses, not just about putting up frames and selling them to speculators. Neighborhood stabilization is about lowering crime rates, increasing property values," and creating a close-knit business friendly community with a solid infrastructure.

The meeting was also addressed by former California Secretary of Health and Human Development Grantland Johnson. Johnson cautioned against focusing too much on one issue, saying, "if you're focused on one issue, that's OK, but it's hard to sustain, it's hard to make other people see what your common, underlying interests are." He also said that the overriding issue in Sacramento politics today was "a lack of transparency and forthrightness when it comes to public policy," an opinion shared by many of the meeting's other attendants.

At the meeting's conclusion, Moore reiterated the importance of quick action, saying "We are never going to get an opportunity like this again. We are never going to get these gifts from the government again, free money to do the right thing, and if we let these developers come in and build another martini bar, we'll just be scraping by with whatever crumbs are left."

Responses were solicited from the offices of Angelo Tsakopoulos and David Taylor, however as of press time no comments have been received. Maurice Chaney, Public Information Officer for the City, did release a response to the comments made by Moore and Knapp about Taylor's K street developments, saying "It’s important to remember that the City of Sacramento did its due diligence as part of this project proposal. It met with many stakeholders and other interested parties, including the midtown businesses, over several months to ensure that full participation and outreach was conducted to understand the issues and concerns." The full text of Chaney's response can be found here.
 

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edited on  March 20, 2009 | 7:37 AM
Good article Raoul, these are the types of stories you will rarely see in the mainstream media. There is no doubt whatsoever that this City is corrupt and that if you rub elbows with council members the payoffs are clearly huge.

And as for the City's response, Maurice Chaney = Public Disinformation Officer.

Chaney is intentionally misinforming the public, the cost of the K street project also includes the value of the FREE land given to Taylor, worth over $5 Million according to Attorney Steve Belzer who represented the previous property owners who had this same property seized by force from the City in order to GIVE it to Taylor.

Chaney also states the mantra: "I think it's important to clarify that the Sheraton Hotel proceeds are legally obligated to David S. Taylor Interests and the CIM Group." NO SH*T! Thats exactly the problem Chaney! The City sold the Sheraton to David Taylor below market value, and even then the City made a return on the taxpayers initial investment in the Sheraton...But instead of returning the communities investment of tax dollars, they GAVE 23 MILLION BUCKS to Taylor to do with basically as he pleases as long as he uses the money downtown. WHAT A SCAM! There was no legal obligation whatsoever to give Taylor this $23 million dollars to do with what he pleases.

I also liked where he sates "It’s important to remember that the City of Sacramento did its due diligence." Well of course it jumped through all of the Hoops it is required to by law, however, those hoops do not prevent corruption at all, in the end, Taylor got his $10 million free dollars to build bars. What do you think would happen if YOU went to the City and asked them for $23 Million dollars? What about a measly $10 million? Good luck!

I also note that former City councilman Josh Pane is so incensed by this project that he is working on circulating a referendum to let the taxpayers vote on throwing this deal out. I for one will help circulate this petition and donate money to the cause.
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March 20, 2009 | 11:29 PM
Great response Gadfly. More bars in downtown or midtown not needed. Did we as citizens vote for these new bars on K street? I look forward to community organizers having an oversight committee. No more government running amuck with our buck. Citizens taking responsibility for governments gone mad. Maybe there is hope after all.
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March 21, 2009 | 10:45 AM
If an oversight committee is given any power, that is... Often it seems that "public forums" where they give people free pizza and big writing pads to scribble on and felt-tip markers to scribble with, they let people draw on the pads and talk about how important community input is, then they throw the stuff out and do what they wanted to do in the first place. And lately, with all the talk of "streamlining" deregulation plans and sacrificing democracy in the name of efficiency, even springing for pizza and felt-tip markers is too much. So I don't have high hopes that an advisory body will be much more than a token effort.

I mean, hopefully I'm wrong and just being cynical and there will be such a body, with some real teeth. But I'll believe that when I see it.
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edited on  March 21, 2009 | 3:15 PM
I agree with you for the most part William...for most "oversight" committees that is... I attended this meeting so I can speak a little about this coalition of local community leaders...(but I do not speak for them) The Economic Opportunity Coalition (EOC) will be made up of local citizen active in their community and non-profit organizations and would have have no official sanction...and most likely would never be recognized by any public body...this is a good thing. They will only have political influence by shear numbers and their influential role in the community. The EOC intends to be very active on a grassroots level when it comes to supporting candidates for elected office. If the local elected officials continue on the current path of handing out tens of millions of dollars to a few well connected Insiders, while ignoring the needs of this community than the EOC will become politically active in helping remove those candidates and helping fund candidates that will take a more balanced approach to improving our community, especially those that support investment into neighborhoods vs the K Street black hole.

What few people know that have not lived in Sac for many years is that the City has already pumped upwards of 200 million dollars into K street just to watch it fail. I remember especially the 80-90's when they were throwing money into K Street...what did all of this taxpayer money do? Make a few developers rich while it continued it's downward spiral. Since 1990 I have seen every business that was not subsidized by the government fail and close their doors.

Now we have Obama pumping billions of dollars into the economy and once again here in Sacramento, the same Insider developers are getting their wallets fattened in the name of helping the poor and revitalizing our neighborhoods. It makes me sick to see such outward manifestations of corruption. The EOC was conceived to try to bring some balance to this mess.

I support any organization that tries to bring about change in the good ol' boy politics in this dirty cow town.
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July 16, 2010 | 5:25 PM
Arrest Logs - sacbee.com(South Sacramento CHP); James Knapp 07/12/10: Weapons (San Mateo SD); Edson Mogollon 07/11/10: Drunk (Placer SD); Dequiez Jackson ...

A man who entered the Hall of Justice Monday and arrested for having a concealed weapon was named by the San Mateo County Sheriff’s Office yesterday.
James Douglas Knapp, 44, entered the Hall of Justice security checkpoint and placed his backpack which contained a .45 caliber handgun and a loaded magazine into the X-ray machine, Monday afternoon, according to the Sheriff’s Office. Knapp was arrested for unauthorized possession of a loaded firearm in a state or public building and for carrying a concealed loaded firearm. Knapp was booked into the Maguire Correctional Facility without further incident.
He was in the Hall of Justice to petition the court for a modification of his child custody order. He said he was unaware that a handgun and loaded magazine were in his backpack.

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