1999 AGN MAR 02 Misc Add 8 - Laserfiche WebLink

Browse Search

Colton Councilmember D. Sanders Letter to Mr. O. Ricardo Pimentel, Editor, San Bernardino County Sun February 22, 1999 Page 2 of 3 2. Using this information to determine the Agency's costs to exit the project under one of three approaches: i.) Maintaining the current ownership conversion but at the more aggressive pricing recommended. Converting the park back to a rental park by selling to private or non-profit parties. iii.) Selling the park to the highest bidder. 3. Discussing with park residents the various options and seeking their preferences and concerns. 4. Identifying the source of funds to complete the responsibilities under each of these options. After an intensive review of this vast data, the Agency Board directed staff to continue with the ownership conversion program while implementing a vast array of changes to the way the park is managed and developed. Though the recommended changes are numerous, market considerations and marketing strategies for new homes & rehabilitated rnobile homes shall be paramount in revitalizing the park. The editorial suggests that the Agency could somehow walk away from its obligations to the residents and bondholders by selling the park to private parties 'thereby allowing Agency funds to be spent on other projects. If only it were that simple. The simple fact is that the Agency owes $7.2 million on the park and that obligation must be repaid under any exit strategy. The City will not default on its debt and tarnish its stellar credit rating. I encourage you to further examine the Colton's Economic Recovery Plan that was embarked upon in 1995 and has yielded high marks on Wall Street and the Bonding Community in general. In fact, the most costly option for the City was the one that the "Sun" recommends—immediately selling to private investors. While that would bring closure to this particular episode, it would not save the City money—nor would it provide the benefits originally sought on behalf of the residents. The City concurs that it should not be in the mobilehome park business, but it must act responsibly in exiting this engagement and seek to minimize its costs while still pursuing its affordable housing objectives.