2018 Pardee Homes Made $38 Million Off Sundance Property Owners

City of Beaumont/Pardee Homes/Sundance Area 8

The Sundance Development Area 8 is divided into multiple development areas labeled Area 8 and Area 8A through 8F. There are some areas that have yet to be issued a letter.

The original name of the development area was ‘Deutsch Project. A Notice of Preparation was filed by the original property owners in 1989 to build 1,968 houses, 675 Condo/Apartments, and 257 acres of Commercial. A Draft EIR was filed in 1990, but the project was never developed.

Around 2004 Pardee Homes became the Developer and Changed the project’s name of ‘Sundance’, but never filed any CEQA documents on the project. Because the City of Beaumont has removed the number of houses being built from all City documents it is unknown how many houses are being constructed in the Sundance development.

On May 1, 2018, Two Elementary Schools and a Jr. High School in Sundance were Removed from the General Plan in order to build more houses: https://beaumont.civicweb.net/document/13437/Item%2011.pdf?handle=3253386C03BA4B318B6FED505BFEBE90

Area 8C:

In 2012 the City of Beaumont acquired a $5,650,000 Mello Roos Bond levied against Sundance Area 8C of which $2,789,550.87 remained in the Bond Fund Accounts. On January 5, 2018, the City received the entire $2.8 Million. The entire amount was transferred to Pardee Homes on January 11, 2018.

Pardee Homes claims to have built Millions in Public Infrastructure, but can not provide receipts. Pardee Homes Vice President of Community Development Jeff Chambers stated in a letter to the City of Beaumont on June 13, 2017 :

“..vendors have either gone out of business or no longer have records relating to this facility/project. Due to the timing, it would be extremely difficult, if not impossible for Pardee [to] retrieve such documents and therefore cannot provide documentary evidence of compliance with the prevailing wage that applies to the facility.”

Pardee Homes has no receipts because their Invoices are forged, not because bookkeeping wasn’t invented a decade ago. There were no Public Bids submitted as required by California Public Contract Code or Payroll Records submitted as required by California Labor Code.

Area 8C:

On May 31, 2018, the City of Beaumont acquired a $16,915,000 Mello Roos Bond levied against Sundance Area 8C of which $16,404,065.90 was allocated to the Construction Fund. The entire $16.4 Million was transferred to the City on June 28, 2018. The entire $16.4 Million was transferred from the City to Pardee Homes on June 29, 2018.

Pardee Homes claims to have constructed Public Infrastructure ‘Hard and Soft Costs’, but there were no Public Bids submitted as required by California Public Contract Code or Payroll Records submitted as required by California Labor Code.

There is no request for the money from Pardee Homes. On June 22, 2018, Beaumont’s Financial Advisor, Mike Busch of Urban Futures, sent a letter to Assistant Manager Kristine Day stating that he verified Pardee Homes’ Invoices, but admitted that some of the Invoices were falsified.

There were no Public Bids submitted as required by California Public Contract Code or Payroll Records submitted as required by California Labor Code. Mike Busch and Urban Futures are Associates of the former City Manager Alan Kapancias and profits financially from every Bond the City of Beaumont acquires.

Area 8D:

On June 6, 2018, the City of Beaumont acquired a $7,675,000 Mello Roos Bond levied against Sundance Area 8D of which $7,322,774.46 was allocated to the Construction Fund. On June 28, 2018, the entire $7.3 Million was transferred to the City of Beaumont. On June 29, 2018, the City transferred the entire $7.3 Million to Pardee Homes.

The City has no request for the money from Pardee Homes, only the statement from Mike Busch of Urban Futures that some of the Invoices reviewed were incorrect.

Area 8E:

On December 4, 2018, the City of Beaumont acquired a $12,680,000 Mello Roos Bond levied against Sundance Area 8E of which $11,605,720.71 was allocated to the Construction Fund. On December 13, 2018, the $9,450,962.06 was transferred to the City of Beaumont. The City transferred the entire $9.45 million to Pardee Homes the same day.

On December 27, 2018, the City received the remaining $2,154,738.65 and transferred the entire $2.15 Million to Pardee Homes the same day.