Request #1391
Please provide me with copies of cashiers checks , money orders for interest payments now due on the $12,000,000 dollar plus loan the City provided to Phil Tagami for the development of the Rotunda Building. These payment were to commence January 2013 and to continue through 2017 under the terms of the Disposition Development Agreement.
Also provide the required amount for each payment
Thank you
Please provide me with copies of cashiers checks , money orders for interest payments now due on the $12,000,000 dollar plus loan the City provided to Phil Tagami for the development of the Rotunda Building. These payment were to commence January 2013 and to continue through 2017 under the terms of the Disposition Development Agreement.
Also provide the required amount for each payment
Thank you
Response
Dear Records Requester, The City of Oakland has no documents which are responsive to this request. Staff inform me that "Section 2 of the Promissory Note establishes that the debt service payments on the loan begin 15 years after execution of the Note (10/20/1999), or beginning on October 20, 2014." A copy of that Promissory Note was previously provided to you. Since the City has no responsive records, we will consider this request closed. - James A. Bondi
Dear Records Requester, The City of Oakland has no documents which are responsive to this request. Staff inform me that "Section 2 of the Promissory Note establishes that the debt service payments on the loan begin 15 years after execution of the Note (10/20/1999), or beginning on October 20, 2014." A copy of that Promissory Note was previously provided to you. Since the City has no responsive records, we will consider this request closed. - James A. Bondi
This response is totally UNACCEPTABLE . The agenda Report dated May 26, 1998 to the then City Manager Robert C. Bobb from the Community & Economic Development Agency on page 2 says "RP1(Rotunda Partners 1 whom Phil Tagami is the Principle) proposes to rehabilitate the historic Rotunda building into a mixed-use commercial retail and office project. RP1 has estimated total project costs to be $32 million and requests that the Oakland Redevelopment Agency ("Agency")provide a deferred loan of $12.000,000 to cover predevelopment and construction costs. The DDA between the Agency and RP1 incorporates the TERMS and CONDITIONS under which the Agency will transfer the property and fund the loan(see Attachment A for details A). The property would be sold for a purchase price of ninety-nine dollars. The Agency loan will be for a term of 20 years and REQUIRE no principal or interest payments until the year 2013. Interest from 2013 to 2017 will be paid at 3 percent annually. Upon sale of the building RP1 will REPAY the Agency loan, plus 50 percent of NET sales proceeds above $38 million.
THE LANGUAGE OF THE DDA OF THE TERMS AND CONDITIONS ARE CRYSTAL CLEAR. FOR STAFF TO BE UNRESPONSIVE TO PROVIDING ME WITH MY REQUESTED INFORMATION "COPIES OF THE PAYMENT INSTRUMENT (CASHIERS CHECK, MONEY ORDER ETC.) FOR THE INTEREST PAYMENT COMMENCING JANUARY 2013 WOULD SUGGEST THAT NO PAYMENTS HAVE BEEN PAID BY TAGAMI.
MY CALCULATIONS BASED UPON THE TERMS AND CONDITIONS OF 3% ANNUALLY SHOULD AMOUNT TO NO LESS THAN $30,000.00 DOLLARS PER MONTH. IT WILL ALSO SUGGEST THAT TAGAMI HAS DEFAULTED ON HIS PAYMENTS WHICH PENALTIES AND INTERESTS ARE ADDED TO THIS AMOUNT.
THIS COUNCIL AS A RESPONSIBILITY TO SCHEDULE THIS MATTER AT THE RULES COMMITTEE TO BE PLACED ON THE NON-CONSENT CALENDAR AND GET A FULL AND DETAILED ACCOUNTABILITY FROM STAFF OF WHAT APPEARS TO BE A FRAUDULENT ACTIVITY.
THE CITY AUDITOR SAYS "REPORT WASTE AND FRAUD" THIS CLEARLY QUALIFIES.
Gene Hazzard
THE LANGUAGE OF THE DDA OF THE TERMS AND CONDITIONS ARE CRYSTAL CLEAR. FOR STAFF TO BE UNRESPONSIVE TO PROVIDING ME WITH MY REQUESTED INFORMATION "COPIES OF THE PAYMENT INSTRUMENT (CASHIERS CHECK, MONEY ORDER ETC.) FOR THE INTEREST PAYMENT COMMENCING JANUARY 2013 WOULD SUGGEST THAT NO PAYMENTS HAVE BEEN PAID BY TAGAMI.
MY CALCULATIONS BASED UPON THE TERMS AND CONDITIONS OF 3% ANNUALLY SHOULD AMOUNT TO NO LESS THAN $30,000.00 DOLLARS PER MONTH. IT WILL ALSO SUGGEST THAT TAGAMI HAS DEFAULTED ON HIS PAYMENTS WHICH PENALTIES AND INTERESTS ARE ADDED TO THIS AMOUNT.
THIS COUNCIL AS A RESPONSIBILITY TO SCHEDULE THIS MATTER AT THE RULES COMMITTEE TO BE PLACED ON THE NON-CONSENT CALENDAR AND GET A FULL AND DETAILED ACCOUNTABILITY FROM STAFF OF WHAT APPEARS TO BE A FRAUDULENT ACTIVITY.
THE CITY AUDITOR SAYS "REPORT WASTE AND FRAUD" THIS CLEARLY QUALIFIES.
Gene Hazzard
From: Gene Hazzard <[email protected]>
Date: Tue, Dec 17, 2013 at 7:19 PM
Subject: Rotunda Building and Rotunda Garage
To: fblackwell <[email protected]>, Barbara Parker, City Auditor Receptionist <[email protected]>
Fred:
This is a formal request that the office of the City Administrator, City Attorney, and the Office of the City Auditor do a top to bottom examination and investigation of the transaction agreement between Rotunda Garage , LP a California Limited Partnership and the Redevelopment Agency of the City of Oakland pursuant to the Disposition and Development Agreement dated August 26, 2004.
I have consistently made Public Records Request regarding both the Rotunda Partners ll, LLC and the Rotunda Garage LP throughout 2013 involving Phil Tagami. Public Records Request #13268 was Feb. 5, 2013 and the most recent Public Records Request #1391. Your staff, has been unresponsive to my request for information as it relates to the $12,000,000.00 deferred loan that the City provided Tagami for the Rotunda Building where the interest payments are past due[see the Agenda Report dated May 26, 1998 to then City Manger Robert C. Bobb from the Community & Economic Development Agency page 2] which I provided you in an email dated November 20, 2013. Your staff has provided me with the Promissory Note of the Rotunda. This is unresponsive to my request because it fails to show performance and execution of the terms layed out in the Disposition Development Agreement.
Resolution 8004-36 C.M.S passed by Members of the Redevelopment Agency which are the members of the City Council on July 6, 2004 clearly establishes the terms and conditions related to both the Rotunda and the Rotunda Garage.
On December 6, 2013 there is a zoning permit posted has it relates to the proposed development on Parcel #2 of the Rotunda Garage which was illegally sold to San Pablo Commercial Center LLC[whose members constituting the ownership has not been identified]. The Alameda County Assessors Record shows that this parcel has been sold for $152,000.00 which is clearly illegal under the Disposition Development Agreement and your office refuse to investigate the matter. Additionally, the City realizes no revenues from this transaction.
Under the language of the DDA for the Rotunda Building, Phil Tagami is not obligated to pay the deferred loan of $12,000,000.00 until the sale of the building. The carefully grafted language is as follows: UPON SALE OF THE BUILDING RPl(Tagami) will REPAY the Agency loan, plus 50 percent of NET sales proceeds above $38 million. So Tagami is able to realize $13,000.000.00 dollars. What is not stated however, is if the sale is below $38 million dollars[say $37,000,000.00], Tagami is able to realize 100% of the net which is $25,000.000.00 and no revenues are afford the City.
The City has the first right of purchase. It's not likely the City would reject the purchase, the question is would the City purchase the Rotunda Building above the $38 million or offer a lower amount. A lower amount would ONLY have the City having the deferred loan repaid and 100% of the net is realized by Tagami[$25,000.000.00]
It would appear your office and the other responsible departments of the City are condoning the gift of Public Property , and allowing revenues to go to a private entity which is tantamount to a gift of Public Revenues.
This failure to examine, investigate and bring forth civil and criminal charges by what is clearly illegal transactions is reprehensible.
This matter needs to be scheduled for the Council Agenda.
Gene Hazzard.[510]418-0501
Date: Tue, Dec 17, 2013 at 7:19 PM
Subject: Rotunda Building and Rotunda Garage
To: fblackwell <[email protected]>, Barbara Parker, City Auditor Receptionist <[email protected]>
Fred:
This is a formal request that the office of the City Administrator, City Attorney, and the Office of the City Auditor do a top to bottom examination and investigation of the transaction agreement between Rotunda Garage , LP a California Limited Partnership and the Redevelopment Agency of the City of Oakland pursuant to the Disposition and Development Agreement dated August 26, 2004.
I have consistently made Public Records Request regarding both the Rotunda Partners ll, LLC and the Rotunda Garage LP throughout 2013 involving Phil Tagami. Public Records Request #13268 was Feb. 5, 2013 and the most recent Public Records Request #1391. Your staff, has been unresponsive to my request for information as it relates to the $12,000,000.00 deferred loan that the City provided Tagami for the Rotunda Building where the interest payments are past due[see the Agenda Report dated May 26, 1998 to then City Manger Robert C. Bobb from the Community & Economic Development Agency page 2] which I provided you in an email dated November 20, 2013. Your staff has provided me with the Promissory Note of the Rotunda. This is unresponsive to my request because it fails to show performance and execution of the terms layed out in the Disposition Development Agreement.
Resolution 8004-36 C.M.S passed by Members of the Redevelopment Agency which are the members of the City Council on July 6, 2004 clearly establishes the terms and conditions related to both the Rotunda and the Rotunda Garage.
On December 6, 2013 there is a zoning permit posted has it relates to the proposed development on Parcel #2 of the Rotunda Garage which was illegally sold to San Pablo Commercial Center LLC[whose members constituting the ownership has not been identified]. The Alameda County Assessors Record shows that this parcel has been sold for $152,000.00 which is clearly illegal under the Disposition Development Agreement and your office refuse to investigate the matter. Additionally, the City realizes no revenues from this transaction.
Under the language of the DDA for the Rotunda Building, Phil Tagami is not obligated to pay the deferred loan of $12,000,000.00 until the sale of the building. The carefully grafted language is as follows: UPON SALE OF THE BUILDING RPl(Tagami) will REPAY the Agency loan, plus 50 percent of NET sales proceeds above $38 million. So Tagami is able to realize $13,000.000.00 dollars. What is not stated however, is if the sale is below $38 million dollars[say $37,000,000.00], Tagami is able to realize 100% of the net which is $25,000.000.00 and no revenues are afford the City.
The City has the first right of purchase. It's not likely the City would reject the purchase, the question is would the City purchase the Rotunda Building above the $38 million or offer a lower amount. A lower amount would ONLY have the City having the deferred loan repaid and 100% of the net is realized by Tagami[$25,000.000.00]
It would appear your office and the other responsible departments of the City are condoning the gift of Public Property , and allowing revenues to go to a private entity which is tantamount to a gift of Public Revenues.
This failure to examine, investigate and bring forth civil and criminal charges by what is clearly illegal transactions is reprehensible.
This matter needs to be scheduled for the Council Agenda.
Gene Hazzard.[510]418-0501
Response 1391
Dear Records Requester: Staff have just provided me with a copy of a recent payment under the Rotunda development agreement, so I have re-opened this request to allow me to post a copy of that document for you. Having done that, I will re-close this request. You are of course welcome to submit future requests on this or any other matter. - James A. Bondi
Dear Records Requester: Staff have just provided me with a copy of a recent payment under the Rotunda development agreement, so I have re-opened this request to allow me to post a copy of that document for you. Having done that, I will re-close this request. You are of course welcome to submit future requests on this or any other matter. - James A. Bondi
From: Gene Hazzard <[email protected]>
Date: Fri, Dec 20, 2013 at 11:09 AM
Subject: Formal Request for an Investigation into possible Fraud/Corruption
To: [email protected]
TO: Alameda County District Attorney
The Honorable Nancy E. O' Malley
Date: Fri, Dec 20, 2013 at 11:09 AM
Subject: Formal Request for an Investigation into possible Fraud/Corruption
To: [email protected]
TO: Alameda County District Attorney
The Honorable Nancy E. O' Malley
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SUBJECT:
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FORMAL REQUEST FOR AN INVESTIGATION OF POSSIBLE FRAUD AND CORRUPTION RELATED TO THE DISPOSITION DEVELOPMENT AGREEMENT RELATED TO THE ROTUNDA AND ROTUNDA GARAGE BETWEEN THE CITY OF OAKLAND REDEVELOPMENT AGENCY AND ROTUNDA PARTNERS I (PHIL TAGAMI AND LENARD EPSTEIN) A CALIFORNIA GENERAL PARTNERSHIP AND THE ROTUNDA GARAGE, LP (WHOSE MEMBERSHIP INCLUDES PHIL TAGAMI AND LEONARD EPSTEIN)
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FROM: GENE HAZZARD
This is formal request to the Alameda County District Attorney's office to do a top to bottom investigation of the possible fraud and corruption related to the Disposition Development Agreement entered into by the former Redevelopment Agency of the City of Oakland with Rotunda Partners I [A California General Partnership] and Rotunda Garage LP.
The City's Redevelopment Agency sold to the identified parties City owned Properties which included The Rotunda Building for $99 and provided a $12,000,000.00 deferred loan and the repayment of the loan by the above parties is tied the sell of the Rotunda Building. If the sell of the Building is "above $38,000,000.00 the net is split 50-50 with RPI after the loan repayment this means $13,000,000.00 is profit for RPl.
There is no language should the sell of the Rotunda is below $38,000,000.00 which means RPl will stand to realize a profit of $25,000,000.00. This agreement is clearly not in the best interest of the City and was designed to defraud the City of needed revenues
Additionally, the Disposition Development Agreement for the Rotunda Garage which includes four(4) parcels , three of which were sold for $99 each and one parcel was leased for $1 for five years with additional options require specific conditions. One of the clearly defined conditions if "all or any of the Parcels are not developed in the required period defined , there is a reversion and repurchase provision for the City.
The Disposition Development agreement prohibits, transfer, sell , and the use for speculative purpose.
The Alameda County Assessors document shows that Parcel #2 has been sold by Rotunda Garage LP for $152,000.00 for which the City realized none of the revenues. Once again, the City has been defrauded.
With respect to the selection of RPl and Rotunda Garage LP who possessed no prior experience has developers the experienced entities and financial capable entities who expressed interest in the projects were invariably rejected. A review of the documents the City has continually, subsidized all of RPl and Rotunda Garage LP projects.
Review Redevelopment Agency of the City of Oakland Resolution 8004-36
July 6, 2004
Thank for your consideration in this very serious matter for the residents of the City of Oakland
Gene Hazzard
This is formal request to the Alameda County District Attorney's office to do a top to bottom investigation of the possible fraud and corruption related to the Disposition Development Agreement entered into by the former Redevelopment Agency of the City of Oakland with Rotunda Partners I [A California General Partnership] and Rotunda Garage LP.
The City's Redevelopment Agency sold to the identified parties City owned Properties which included The Rotunda Building for $99 and provided a $12,000,000.00 deferred loan and the repayment of the loan by the above parties is tied the sell of the Rotunda Building. If the sell of the Building is "above $38,000,000.00 the net is split 50-50 with RPI after the loan repayment this means $13,000,000.00 is profit for RPl.
There is no language should the sell of the Rotunda is below $38,000,000.00 which means RPl will stand to realize a profit of $25,000,000.00. This agreement is clearly not in the best interest of the City and was designed to defraud the City of needed revenues
Additionally, the Disposition Development Agreement for the Rotunda Garage which includes four(4) parcels , three of which were sold for $99 each and one parcel was leased for $1 for five years with additional options require specific conditions. One of the clearly defined conditions if "all or any of the Parcels are not developed in the required period defined , there is a reversion and repurchase provision for the City.
The Disposition Development agreement prohibits, transfer, sell , and the use for speculative purpose.
The Alameda County Assessors document shows that Parcel #2 has been sold by Rotunda Garage LP for $152,000.00 for which the City realized none of the revenues. Once again, the City has been defrauded.
With respect to the selection of RPl and Rotunda Garage LP who possessed no prior experience has developers the experienced entities and financial capable entities who expressed interest in the projects were invariably rejected. A review of the documents the City has continually, subsidized all of RPl and Rotunda Garage LP projects.
Review Redevelopment Agency of the City of Oakland Resolution 8004-36
July 6, 2004
Thank for your consideration in this very serious matter for the residents of the City of Oakland
Gene Hazzard
