Emergency Request for Elected Leaders to Intervene

This article may not be properly formatted for the Patch- the full article can be read at: CUSDWatch:October 11, 2017 CUSD BOT Meeting Agenda Item #38PA2 SCHOOL IMPLEMENTING AGREEMENT – RMV COMMUNITY DEVELOPMENT, LLC AND RMV PA2 DEVELOPMENT, LLC

Approval of this agreement will result in substantial financial harm to students and taxpayers within the Capistrano Unified School District. City Attorney's, City Managers, and all elected officials must intervene and stop the District from entering into this agreement with Rancho Mission Viejo.

On November 6, 2017 the CUSD Board of Trustees approved Resolution 1314-25 which gave staff authority to implement the mitigation agreement with RMV that included authorizing "... the Superintendent, Deputy Superintendent of Business Services, or their designees, to take all such future actions, and to execute additional documents as are necessary to implement the foregoing described agreements."

This gave Clark Hampton, Deputy Superintendent Clark Hampton UNILATERAL authority to execute all agreements with related to the Rancho Mission Viejo Development.

Clark Hampton is not a licensed real estate broker.

Clark Hampton is not an attorney.

Clark Hampton has no fiduciary duty to represent the interest of taxpayers and students in these real estate negotiations.

The November 2013 Facilities and Funding Agreement between CUSD and the Ranch that was negotiated by Clark Hampton and signed by an unidentified attorney who signed their name with an "X" resulted in the gifting of $13 million dollars in taxpayer money to the Ranch because Clark Hampton agreed to value the Esencia K-8 school site as if the land had entitlements to build 100 homes on it. The land has no such entitlements. The originally disclosed price of the land was $21 million. CUSD ended up paying $33.86 million - $2.4 million per acre. This land deal is currently under investigation by the Orange County District Attorney.

Agenda Item #38 will result in substantial financial harm to CUSD because it will commit all current and future facilities dollars to the construction of Ranch projects leaving no facilities dollars for the remaining 53 schools in CUSD. This will also drain all CFD Mello Roos funds for the benefit of the Ranch while denying taxpayers living outside Sendero, Esencia and PA3 entrance into Esencia K-8.

This must be stopped based on the information below.

In addition to gifting $13 million dollars to the Ranch for the overpayment for the land, funding for the construction of the school was based on the following:

Source: March 22, 2017 CUSD BOT Meeting Agenda Item #22 page 232

The State is not releasing any matching funds and may never do so. As such, CUSD must find an additional $17 million to complete the construction of the Esencia K-8 school.

Source: November 8, 2017 CUSD BOT Meeting Agenda Item #38 page 1192

To cure the "Cash Flow Emergency" Trustees are being asked to approve PA2 School Implementing agreement.

Clark Hampton's Representation to Trustees that:

is FALSE and INTENTIONALLY MIS-LEADING.

CUSD has already gifted $13 million in funds to the Ranch for the purchase of the school site that are now NOT AVAILABLE for other facilities projects.

This agreement will force CUSD to use remaining facilities funds to ensure payment for the Construction of the school. The project is short $17,969,156 dollars. There is not going to be any State Matching Funds. CUSD will be forced to pay for the $17,969,156 million which will have a substantial effect on CUSD's ability to fix and maintain the 53 school sites outside of the Ranch Plan Area.

ACTION IS REQUIRED:

CUSD Trustees must rescind Resolution 1314-25 Clark Hampton is not qualified to negotiate these land deals.

March 22, 2017 CUSD BOT Meeting Agenda Item #22 RESOLUTION NO. 1617-56, RATIFICATION OF AGREEMENT TO PURCHASE THE ESENCIA SCHOOL SITE AND DELEGATION TO ACCEPT THE DEED:page 229

ACTION IS REQUIRED:

Trustees must not obligate the District to use all available facilities fund to benefit the Ranch at the expense of every other school within CUSD.

The $13 million already gifted + the $17 million to be committed is $30 million that cannot be spent elsewhere.

Clark Hampton is currently negotiating 3 additional land deals in an effort to generate NEW revenue streams to cover up the poor deal he made with the Ranch. The following 3 land deals will also result in substantial harm to taxpayers living within CUSD boundaries.

Pacifica San Juan in San Juan Capistrano

Paseo de Colinas in Laguna Niguel

and

The South bus Yard in the City of Dana Point.

STOP CLARK HAMPTON!