LASSEN COUNTY $25,000,000 GRANT

VOCATIONAL CENTER AT JAIL

Fund 153

BOARD OF SUPERVISORS CHAIRMAN

CHRIS GALLAGHER GIVEN BAD INFORMATION

$25,000,000 GRANT COMES WITH MORE THAN A $1,250,000 COUNTY OBLIGATION

3/20/18 LCPIC annual meeting to approve loan amendment Left to Right:   Lassen County Board of Supervisors Chris Gallagher, County Counsel Bob Burns

In 1989, prior to Gallagher being elected, Lassen County took out a $6,675,000 loan to build a new jail, new juvenile detention facility, purchase a new computer system and to repair to certain County buildings.  Kan We Help has evidence this loan was never paid off and when KWH noticed the County, it just disappeared from the "books".

On June 1, 2015, prior to Gallagher being elected, the Lassen County Supervisors, voted to put the County's APN 101-150-01 parcel (23.45 acres) up as collateral to obtain a $4,080,000 loan. 

In the 2015 loan documents, the 27 year old Juvenile Hall was the collateral which sits on the 23.5 acres. The LCPIC loan EXHIBIT A, PROPERTY DESCRIPTION states that the collateral is the:

 "Juvenile Hall and the property under said building, located at 1415 Chestnut Street, Susanville, CA  96130 on a portion of the real property of the County". 

APN 101-150-01 Parcel in blue prior to subdividing in 2017

The Lassen County CAO Richard Egan was responsible for NOT SUBDIVIDING APN-101-150-01 (1415 Chestnut, Susanville) which would have clearly defined Lassen County's collateral for the 2015 loan.

SUPERVISOR GALLAGHER STATED AT THE ANNUAL LCPIC MEETING ON MARCH 20, 2018 THAT "THE LOAN DID NOT INCLUDE THE 23.45 ACRES".

......technically it did, legally it did

FIRST AMENDMENT TO LEASE/PURCHASE AGREEMENT VOTED ON 3/20/18

 SKULDUGGERY AT THE HIGHEST LEVEL

Lassen County's Intention to Impair the Validity

of the 2015

$4 million dollar loan

Lassen County issued a second Certificate of Participation for $4,080,000 in 2015. It was intended to do three things: purchase and remodel the Riverside property, build a community swimming pool with the City of Susanville and remodel the old Courthouse on Lassen Street.  The funds were so mismanaged that there were no funds left to do the courthouse remodel (add an elevator). In addition, Lassen County is having difficulty each year finding funds to pay the interest payment on the $4 million dollar loan

LASSEN COUNTY PUBLIC IMPROVEMENT CORPORATION

In 2017, Kan We Help objected to Lassen County de-valuing the 2015 $4,080,000 loan without the Lenders (TPB/Western Alliance) knowledge or approval. The Lender (TPB/Western Alliance) originally agreed to take 23.5 acres as collateral (Jail, Cemetery, Juvenile Hall) in exchange for lending Lassen County $4,080,000.

This loan would not have been secured with 2.5 acres that the Juvenile Hall sits on

THE QUAGMIRE

1. Lassen County has not disclosed how much they will need to borrow, in order to qualify for this $25,000,000

2. The Grant is conditional. Lassen County has not disclosed the "conditions" of the Grant

DECEPTION

The Grant application was submitted with full knowledge that the property was encumbered. The $25,000,000 Grant does not allow any debt on the property.  Originally, the intended property for this Grant was the Juvenile Hall that sits on the 23.5 acres which is entirely encumbered by the COP loan.

So........in a stroke of genius or idiocy (aka larceny), the County moved to change the 23.5 acres into four parcels. Placing the Juvenile Hall on a 2.5 acre parcel by itself. By doing so, it changes nothing. The 23.5 acres remains the "collateral" for the $4,080,000 loan unless the County can TRICK the Lender into signing away their collateral.............

The Lender signed off on the new Parcel Map (See above, creation of four new parcels) but there is no evidence that they have knowledge of Lassen County attempting to free up 21 acres from the Lenders collateral.

"Who" would knowingly agree to invalidate their "collateral"

"PROPOSED" FIRST AMENDMENT TO THE LCPIC LOAN

PUBLIC RECORDS  CONFIRM THAT THE LASSEN COUNTY CAO  HAS TRANSFERRED THE MONEY.

PUBLIC RECORDS SHOW AND THE AUDITOR CONFIRMED THAT NO MONEY HAS BEEN TRANSFERRED INTO

FUND 153

.....WHY?  

THERE IS NO MONEY IN ACCOUNTS 3007000

TO TRANSFER FROM

FUND 100 AND FUND 130?

What happened to the $25,000,000 Vocational Center

next to Lassen County's Juvenile Hall

Read the new and improved purpose......

The County opened up Fund 153  for this State Grant, so as not to co-mingle the LCPIC funds

THE PROBLEM THAT REMAINS:  THIS PROPERTY IS COLLATERAL FOR A $4 MILLION LOAN

  AND THE LENDER HAS NOT APPROVED THE COUNTY DIVIDING THE 23.45 ACRES.

The Loan documents have not been amended, the Lender is kept in the dark

        Kan  We Help Exposed Lassen County's

Attempt to Devalue Property

in Order to

Scam the State of California

$25,000,000 to develop  a  vocational center for the Lassen County Jail, but the land must be unencumbered.

IT IS NOT !

NOW THE COUNTY IS IN A PICKLE !

The Lassen County Supervisors, on November 14, 2017, are going to be faced with a rather daunting decision. Do they go ahead and pursue this deception and risk litigation from Western Alliance (Lender of the $4,080,000 ) by devaluing the 23.45 acre collateral (see 2015 parcel map below) to 2.54 acres ?

Richard Egan, CAO, has not, as of this post, notified the Lender in regards to the collateral being devalued............?

The Supervisors placed 22 agenda items in the November 14, 2017 Consent Calendar in which they deny comments from the public. This was placed as G-5 in the Consent Calendar for a reason...so the public could not comment

SUCH A HUGE BROWN ACT VIOLATION

Kan We Help made this presentation on 9/19/17, at the Board meeting , but you will not see a word about it in the Board of Supervisors Minutes or the Lassen County Times. Just the normal suppression in Lassen County

The Lassen County Supervisors took out a Certificate of Participation loan on June 5, 2015 .  They used Parcel 1, which is a 23.45 acre parcel that the Juvenile Hall sits on as collateral for the $4,080,000 loan. 

LASSEN COUNTY CREATES NEW FUND 153

FOR

STATE GRANT APPLICATION

The Supervisors intend to move $21,000 from two accounts

1. $1,000 from Fund 100/0101/3007000: balance $ 0.00

2. $20,000 from Fund 130/0525/3007000: balance $ 0.00

PAY ATTENTION

This presentation was made on 9/19/17 at the Board meeting but you will not see a word about it in the Board of Supervisors Minutes or the Lassen County Times. Just normal suppression in Lassen County