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Kroc-a-dile Tears, Part Deux by Keith Higginbotham | City Beat | 06.14.10 |
+ ![]() 1:45pm | Just over four years ago, the Salvation Army selected Long Beach as one of the sites of a future Kroc Community Center. The deal was pretty simple and by all accounts, pretty amazing for Long Beach: The Salvation Army would provide the construction costs and a portion of an endowment to keep the center open in perpetuity. All the city had to do was come up with a percentage of the endowment as a gesture of community buy-in. The original plan would have seen the Salvation Army contribute $140 million to the project—$80 million for construction and $60 million for the endowment. The city had to come up with $20 million, or just over 14 percent of the whole project. Between 2006, when the City Council was first briefed on the Salvation Army terms, and 2010, the project was downscaled slightly to about $60 million in construction costs and $40 million for the endowment, with the city's contribution as of this year reduced to about $15 million. Unfortunately, while spending a tremendous amount of time and effort working out how to utilize the Hamilton Bowl site for the project, City Hall never officially pushed the launch button on a fund raising campaign. So, on May 4, almost exactly four years to the day after selecting Long Beach as a Kroc Center site, the Salvation Army canceled the project, citing an inability to raise money in Long Beach for the community buy-in. Last week, City Hall released a statement saying that the Salvation Army, after meeting with city officials in late May, refused to reverse their cancellation of the project. However, in the City Hall statement, Mayor Foster states that the city remains committed to building a "world-class community center" at the Hamilton Bowl site—now on its own dime. It should be pointed out here: a) the city is more than broke; b) the city could not raise 14 percent of the cost of the center; and, c) short of state or federal funds, the city has no revenue sources to pay for such a community center on its own in the foreseeable future. But the Mayor did not let those facts get in the way of making a silk park from a dirt field. In what may be the boldest attempt lately to spin bad to good, the Mayor thanks the Salvation Army for turning over the proposed Kroc Center project and design plans to the city at no cost. This "generous donation" the Mayor states, "will save Long Beach a lot of money" when the city gets around to building the center on its own. But this is not a time for celebrating or even counting what small blessing come out of this situation. This, above all of the recent City Hall snafus, is a time to point fingers. This is not just the typical City Hall case of making the wrong decision. No, the main problem here was just plain hubris. Those in City Hall with the ability to act on the fund raising, or the ones that should have acted on the fund raising, did nothing to take it as a serious requirement for the project. And this inaction was committed with the assumptive arrogance and overconfidence that someone like the Salvation Army would never even consider canceling the project on a city as deserving as Long Beach. Even after the Salvation Army first told City Hall the project was canceled, the official city line, repeated by numerous city official in one form or another was, "we can work through this." Imagine—the Salvation Army states unequivocally they are done and the official reaction from City Hall is, "No, it's not done." Well, again, City Hall was wrong. As citizens of Long Beach, there seems to be a certain amount of resignation as we see this city's leadership stumbling from bad decision to bad decision like a junkie staggering from fix to fix. And for the most part, these decisions are simply groused about in the media, and then fade away until the next precious example of feckless leadership rears its head. Yet, if ever the citizens of this city needed an investigation into how one of these bad City Hall decisions was formulated and by whom—the case of the failed Kroc Center is it. If ever the responsible city official or officials needed to be hauled into the spotlight of public humiliation due to their poor judgment and inactivity, this is the case. If ever City Hall needed the brilliant light of openness shined under every rock and into every nook and cranny of 333 Ocean Blvd., this is the case. Because if no one is held accountable when our elected and appointed officials squander what amounted to a nearly $100 million gift designed solely to help one of the most in-need areas of the city—then what real confidence can we have in any of their fiscal actions of smaller scale? Please, take a few minutes, call or email the office of City Auditor Laura Doud or City Attorney Bob Shannon and demand someone look into how the Kroc Center went from dream to debacle and who caused it. Demand that the public be allowed to know the entire story, not just the happy spin and que cera version the Mayor wants us to believe.
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13 Comments so far.
Dr. Mayra Fernandez Who we all hurt and wasn't mentioned by any of the parties are the children and their children and their children. We all had collective mandate to build a legacy for them and we blew it as a community who elected these officials! As to the Salvation Army, I don't know their side, but being that their mandate comes from God, it better be a whopping good story. Disappointed IF the Mayor and Council and senior City mgmt had spent 1/10 the time and attention on this project as they did the bogus wetlands deal, thousands of children in our poorest areas would have had a diversion from ganglife for years and years to come. However, they decided that helping their millionaire friend, Tom Dean, get out of his financial mess was a much higher priority. So the little birdies will someday (doubt it) have a place to live and thrive, the thousands of children in the 6th district had the Mayor, Council, and senior mgmt's backs turned on them. tommy d I believe SA are just people of their word. And good stewards of what they've been given. They prudently downscaled the project when some of the other costs went beyond the original scope - and likewise downscaled the community commitment amount. Their mandate may come from God...but their accountants aren't winging this on a prayer. They needed community buy-in and the LB community (especially elected leaders) as this article claims, should take the heat for their neglect. Mayor Foster should be at the head of the confessional line. Question I would like to be clearer about why LB bungled this. It does not make sense that a project of this scope with all the benefits that would have accrued to so many would have been done in by the City of Long Beach. Surely, no one in city government wants to look like a jacka**? What is the reason the City could not make it work. The journalism here is not exactly crystal clear. ForLB Just do not come back to the public to make up for this mishap and even think about increasing taxes. YES, we all have the right to know the facts. The question is who is willing to provide the whole truth? Since the reason given for disabling CityPay was and still is not logical, then LBPost, should reactivate CityPay for the appropriate evaluation of which $$ can be re-allocated to pay for such elaborate design plan. Ryan ZumMallen, Editor Hello Question, here is a past article that may clear up some of the details about how the Kroc Center deal fell apart: http://www.lbpost.com/ryan/9577 Simpleton The Kroc center is just the latest example of really lousy capital allocation by the city of LB. Smart capital allocation is the key for LB either getting ahead or falling behind. Every year, the city needs to spend most of its revenues covering day-to-day costs such as policing, manning fire stations, maintaining roads, health and welfare programs, etc. The left-over funds (capital), which dwindle as pols cave to public service unions, is what can make the city better or worse. In good times, there is more capital to allocate. In bad times, there is little or none. What have our pols done with allocating capital? Buying votes, yes. Pet projects, yes. Making wise investments that pay for themselves, well...not so much. Think about the major investments over the last 20 years: the Aquarium is a financial sink-hole; the museum need to be bailed out; downtown Long Beach redevelopment continues to draw subsidies from the rest of the city; wetlands have no economic value, etc. The parts of the city that work continue to work, but get hit with higher and higher costs, while the parts of the city that suck resources continue to suck more and more resources. Where would you expect this to go? joke If you have lived in LB for some time you realize two basic facts in local politics - A. no council member in the 6th including the present one, Dee Andrews can get anything done due to a variety of factors, including a strong ability to raise money, pull together five votes, get the heavy hitters in this city to focus on central LB - B. No Mayor has ever cared about the 6th due to low voter turnout - this district should be put out to pasture and blended with the 7th. Go back to the days of Clarence Smith, Doris Topsy, Laura Richardson and now Dee - what have they ever really done for their community that anyone remembers and look at Tom Clark,Ernie Kell, Bev, and now Bob - do you think any of them ever drove through the 6th let alone know where it is - wasn't on their radar - never will be until elected leaders get held accountable until then things will stay the same. Juan Pardell The answer to why the Long Beach Kroc Center won't be built was already given. The City of Long Beach failed to produce matching funds for the project. That is a requirement for all the Kroc centers. Pigeon Government in Long Beach is completely dysfunctional. As long as voters continue to re-elect the group of clowns in office that we have nothing is going to change. Wise up! The Commish It's beyond reprehensible that the city officials, including people such as Dee Andrews who stood to gain so much for his constituents, couldn't get their Rolodex's out and get the money. Local nonprofits have raised that and more for capital improvements recently. Lisa That the city messed up this opportunity is beyond a disgrace. Mayor Foster is truly out of touch with the needs of the city he supposedly leads. All city leaders should be held accountable. I am angry that we let this opportunity slip by. mzm excellent informative article....as a former emplolyee of The Salvation Army I was thoroughly confused about what exactly had taken place for them to pull out (as it is quite rare for them to do so). At this point, I feel it is unrealistic for the city to take on a project of this enormity and it is very sad that this opportunity was lost at all. I appreciate this information and the detail on whom to contact to get more detail and/or express my dismay.
City Beat
Keith Higginbotham takes you inside City Hall and reports weekly on the decisions being made.
Keith Higginbotham is a freelance journalist and writer who most recently served as the West Coast editor for the trade magazine American Shipper, covering the shipping and logistics industries. Prior to this, he served as the Advertising and Multimedia Manager for the Port of Long Beach. He began his journalism career more than a decade ago as the Trade and Transportation beat reporter at the Long Beach Press-Telegram.
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