Hesperia Debate That Should Happen on Monday

Don Quixote Rant: Following is an excerpt from a June 5 Posting.

So it appears that the City's Lawyers, Administration and Financial Department have followed the letter of the Community Charter so that the decision to provide a $5,000,000 loan and 69 acres of City Owned Land to Hesperia for an announced repayment of $6,410,186 at the end of 5 years (subject to rate adjusted quarterly, presently BMO prime +1/4 = 5%) is correct.

Part of this agreement reads " C- The City Transferred the Lands herein defined to Hesperia for the sum of $3 million, purchased by Hesperia with a portion of the loan monies referred to in section 3 of this agreement." (Attributed value of $43,478 per acre ?)

Now it is obvious that there is much more to this deal that must have been discussed at DARKSIDE Meetings (in camera) about the risk and reward and the financial benefit that will be returned to the taxpayer for the use of $5,000,000 and the transfer of 69 acres of land that will be shortly zoned for development under the control, direction and restrictions of the Hesperia Corporation for the purpose of meeting the Key Objective "To develop the Hesperia Lands with a significant proportion of attainable housing".

I trust that this Political Decision (as laudable as it may be) that will be finalized by vote by the 7 Council Members on Monday(?) will only be taken after the full details of the financial return to the Vernon Taxpayers is revealed, including cash flow projections to determine viability of loan repayment, expected subsidy to attain this attainable housing rather than selling off the 69 acres to free market development, expected proportion of estimated 1000 units to be attainable housings, expected dividends from the Corporation to City, and all other details that one would expect to be debated when taxpayers money is being put on the line.

There appears to be no legal requirement for Electoral approval but the Council always has the right if not the obligation to so submit this for full Public Input on the financial merits of this subsidy and or return before the actual deal is consummated.

I would expect the same details and input re the hangers to be built with a $2,000,000 taxpayers loan at the Airport.

When the average person can clearly say, we will give up "x" number of dollars if we develop that land rather than sell it to developers BUT we will get "y" number of attainable housing units and I think that is fair, then the deal should be made. When the average Councillor can actually say and understand that, than then and only then should they actually vote on this deal.

This is a political decision regarding the use of taxpayers assets and Council should assure themselves that can defend their decision by explaining the financial benefits that we will gain and this can only be done if all these facts are debated in an open Council Meeting with all financial projections made available to the public.

I own 1/2 acre of land on the East Hill. The assessment for this land is $232,000 as of July 1, 2007. If I had 69 acres at this rate it would be worth $32,016,000.