Sunday's Signal : Show me the money!

In its strongest worded editorial yet, the Signal on Sunday suggested that the Hart School District Board resign and said that the Santa Clarita Valley Facilities Foundation ought to be investigated by "criminal justice authorities." The 1100 word editorial -long by Signal standards- comes in the wake of interviews conducted by KHTS radio of some of the principal players in the matter, Hart Superintendent Jaime Castellanos, and Facilities Foundation board members Richard Patterson and Gary Condie. "The foundation is trying to play the good people of Santa Clarita for chumps," the editorial said. If the Foundation is acting as a private entity, "it needs to be investigated by criminal justice authorities for fraud and misrepresentation," the editorial continued.

The controversy centers around the financial status of the Facilities Foundation and whether its purchase of land for future junior high and high schools -land that is then used to build residential houses, according to the Signal- is legal. In essence, the Signal alleges, the Foundation builds residential houses on the land it buys, making profit it refuses to disclose to the public. The Foundation insists all profits are given back to the school district and that its board members don't even receive a salary for their services. The Signal also said that documents recently released by the Facilities Foundation were not adequate. On March 8, Superintendent Castellanos gave KHTS radio two spreadsheets which listed contracts the Facilities Foundation had entered into since 1998. The documents were posted on the KHTS website. Then, in mid March, the Facilities Foundation issued a press release saying that their annual report was available for viewing online. The six page report contains a balance sheet, statement of receipts as well as bios of the Facilities Foundation board. Also posted on the Facilities Foundation website is the results of its annual audit, performed by an accounting firm in Santa Clarita. "We've seen those audits before. They show that the foundation knows how to add and subtract. They show that the assets equal the liabilities. They don't show who profited from the land deals," the Signal said. The Signal then reiterated its demand for all title reports, receipts, contracts and even checkbook registers from the 9 year old Foundation. The Signal also pressured the Hart School Board in the editorial: "there is only one acceptable course of action for the members of the school board (other than to resign, which would be a good start). The board must issue an ultimatum: Either the school board - your elected representatives - control the activities and finances of the foundation, or the foundation disbands, with all cash and land reverting to the school district." Editorial: In the absence of some higher authority (such as a court) forcing the Foundation to submit to an independent audit and/or release all the financial documents the Signal has requested, I don't think this issue is going anywhere. The Signal can throw accusations around all it wants; the bottom line is that the Foundation doesn't take its orders from Creekside. Nevertheless, it appears the Signal's editorials are having an effect- prior to March, the Facilities Foundation hadn't spoken much about the controversy, letting the Signal's accusation stand by default. In March, we've heard a lot from the Foundation, including two one hour interviews, some documentation and press releases. One thing is for sure: the Signal is not backing down. They continue to allege criminal behavior at the Foundation, but one would think they would have showed the evidence if they could prove it. They haven't shown any pay-stubs or other proof, yet it seems Budman and Worden won't be happy until someone from the Foundation is frog marched off to jail. How long can this go on until someone ends up in court being sued? Your thoughts on this matter?

Comments (6)

ChrisAMarch 26 at 6:43 PM PT

One thing that I have learned over the last year is that school districts are not controlled by city (or county, I believe) entities. They are their own separate thing, and as such, they can do what they want, and what's more, they don't have to tell anyone about it. Besides the financial issues which the Signal is pressing, the other issue is that the Hart Facilities Foundation went around city and county ordinances by purchasing more land than was needed for Golden Valley High School, grading it all - which would not have been allowed under city zoning & land use ordinances, and then, once it has been graded, oops- more than they need for the high school - so then they sell it to developers, who build more homes. If the developers had applied for the permit to grade the site, they would have been denied, per the ridgeline grading ordinances in place by the city. But the school districts operate independently, so Hart Facilities Foundation has skirted local ordinances and graded where they otherwise wouldn't have been allowed to, and then sold that graded property to developers for a bundle of money. All of this in the name of building schools, but wait a minute - after 8 or 9 years, they've only built one. Is there another under construction? I don't know for sure, but I don't think so. And still there's no high school for Castaic. And Hart High School is falling apart. They have reportedly passed on the middle school site which was part of the Keystone development. Somehow it was 'badly needed' when they were pushing it to us residents in the area, but now that the development has been approved, hey guess what, they don't need that school so bad anymore. So, I don't know what's going on, but something really smells here!

GinaMarch 26 at 8:25 PM PT

I am glad someone is finally making sense (Jeff.) Just because The Signal does not agree with The Facilities Foundation's approach, that does not make their action illegal. In fact, this smells like The Signal making up news again, which is a pattern. They go for the big headline every time. For those cynics out there, have you ever even considered if it could be The Signal who is not being candid about their motives? The hospital has a foundation. So does the College. Is anyone interested in auditing their books? Are we going to call their board members names like little children? I demand that the Signal open their books. I want to see the publishers fat salary. Please.

pinkyMarch 26 at 10:10 PM PT

Gina, Let us be clear as to why the residents in Castaic do not want a high school. Please refer to Signal article dated 3/23 by Katherine Geyer “ Plans for Northlake Concern Castaic. “ (SCVTalk.com 3/23 daily briefs) The Castaic Town Council members are concerned about the Northlake development's impact to the community. The development of a high school was included in this (Northlake) development package. There is a serious issue regarding traffic congestion that (incredible as it sounds) has not been taken into proper consideration by SunCal and others directly/indirectly involved with this project. The Signal may/may not be proven wrong… It doesn’t matter to me. I just want the truth…The Facilities Foundation has a fiduciary responsibility to our community. Please let us not muddy up the waters here. My neighbors and I want answers. This high school overcrowding situation should never have reached to this level. Rest assured, The Signal is not the only one asking questions…

MarcMarch 26 at 10:12 PM PT

I am going to do something that is very rare on a site like this. I am going to tell you who I am and what I stand for, because I have nothing to hide. My name is Marc Emmer and I am a Facilities Foundation Board member. I have only been on the Board for 2 months so I am just becoming acquainted with the Foundation’s history and methods. I speaking out on behalf of myself and not for The Foundation. I can see from the posts on this site that many of you have strong opinions, and I respect that. It is part of being an American. I just ask that you all think for yourselves and be fair in your comments. Know that I am not affiliated with the school board in any way. I serve on Boards because I am interested in preserving the quality of life in Santa Clarita for our children. Previous to working with the Foundation I have donated over a thousand hours in community service. I have no agenda, or profit motive, only do serve the residents of Santa Clarita. I have a business based here but do very little business in this valley. What is really troubling is the character assassinations of our Board, which is made of volunteers. Good people who are trying to make a difference. You may not agree with their views, or approach, but that does not make them bad people, and it really hitting below the belt to call their activities illegal. I understand that some people do not like the fact that The Facilities Foundation will sell a portion of the property they acquire for a school to sell to developers. The reality that we face is that planning a school takes years of planning, and millions of dollars. The model used by The Foundation actually produces more money for the district which they can use to buy new schools. If this model was not used, it would take more time, and more money and our overcrowding problems would be worse. To boil down the charter of The Foundation into simple terms, we are trying to buy land that may not otherwise be used; in advance at lower prices. It is common sense. By flying below the radar, we buy land cheaper. We only act, at the specific bequest of the Board of Trustees. In other words, when the District says we need a new school in a specific area, we try to find land at the best value. I am truly shocked by the level of misinformation that has been printed, blogged, and otherwise circulated that is completely inaccurate, or not supported by any facts. I can assure you that I knew that The Foundation had been the center of controversy before accepting the board seat, so I did a fair amount of due diligence. I interviewed some predominate people in Santa Clarita who had worked with The Foundation, and asked some very pointed questions. I would not have accepted the seat had I thought there was any unethical behavior. I can assure you of this: I am not receiving a penny of compensation, nor would I if provided the opportunity. I do not yet know what level or reporting The Foundation will ultimately provide, but let us not forget that every time The Foundation prepares records, or takes time to defend itself in the media, it is being diverted from its work, and is spending money that is to be utilized for acquiring land for schools. There is no requirement that The Foundation open meetings or records or publish an Annual Report. They have so in an attempt to be transparent and meet the needs of the community. But at some point, it just becomes impractical to report every detail. Some have discounted our certified audit, but that is the level of reporting that is accepted in the nonprofit world, and by Federal and State governments. The Board of Trustee Chair has complete oversight. I truly believe that there are some in the media that seem to think they have identified a controversial issue, and they have chosen to leverage that to gain more notoriety. They have no specific allegations of wrong doing, just gossip and spin. In the case of Castiac, it really tragic that our community has not come together and reached a consensus on what should be done. The Foundation bought land there with every intention of making it available for a school to be built on time. If the County and the residents there do not want a school there, they are going to have to be part of the solution in finding another site. I am sure many of you have heard the buzz about “The Secret” and the power of positive thinking. I wake up every morning wondering what I can do to be productive. Others wake up every day looking for what is wrong with the world and I feel sorry for them. So before you type your next message dis-crediting others, at least show us the courtesy of recognizing that we are just people trying to solve problems. Finally, if you really have a problem with the methods, I invite you to go take a look at the High Schools in Sylmar, North Hollywood or Canoga Park. If any of you have a specific question about a specific issue, you can email me personally and I will try to answer your questions: marc@sstus.com

pinkyMarch 26 at 10:29 PM PT

Marc, I agree with you. Name calling and character assasinations are totally unacceptable.The bottom line is that our school overcrowding situation is not looking good.There are MANY players involved here-including the Foundation, School Board, Developers etc...Why is the Foundation putting up such a resistance to opening up their financial/operational records?Please dont tell me that the annual report and 8 yr consolidated Income Statement they recently submitted for public inspection is sufficient for the type of questions our community is asking. Most of the blog comments and newspaper articles that I have read have included many facts that have been verified as true. You can't dispute these facts. Opinions, however, are just that- opinions...My neighbors and I are using FACTS as our basis for asking questions regarding the Foundation's (and school board's ) operations.

MorningstarrMarch 28 at 9:18 AM PT

I appreciate your comments Marc. However, the issue of the foundation has been one of major contention for many many years. The reality is that it is public money that is being used so the public has a right to see how it is being spent. I'm sorry if that is inconvenient, but if the foundation continues to keep blocking efforts by the public to investigate their dealings, then legal action will most probably be the end result. Further, it is inappropriate for the foundation to use this shelter to circumvent local ordinance and laws to build where building would not normally be permitted under the guise of creating another school when they are so desperately needed. I suppose more houses at a profit will make you feel better at the end of the day, but at the end of the day we are still lacking school facilities. The lack of houses is definitely not a problem! The foundation is nothing but a bait and switch program and should be disbanded immediately.

ChrisAMarch 26 at 6:43 PM PT
One thing that I have learned over the last year is that school districts are not controlled by city (or county, I believe) entities. They are their own separate thing, and as such, they can do what they want, and what's more, they don't have to tell anyone about it. Besides the financial issues which the Signal is pressing, the other issue is that the Hart Facilities Foundation went around city and county ordinances by purchasing more land than was needed for Golden Valley High School, grading it all - which would not have been allowed under city zoning & land use ordinances, and then, once it has been graded, oops- more than they need for the high school - so then they sell it to developers, who build more homes. If the developers had applied for the permit to grade the site, they would have been denied, per the ridgeline grading ordinances in place by the city. But the school districts operate independently, so Hart Facilities Foundation has skirted local ordinances and graded where they otherwise wouldn't have been allowed to, and then sold that graded property to developers for a bundle of money. All of this in the name of building schools, but wait a minute - after 8 or 9 years, they've only built one. Is there another under construction? I don't know for sure, but I don't think so. And still there's no high school for Castaic. And Hart High School is falling apart. They have reportedly passed on the middle school site which was part of the Keystone development. Somehow it was 'badly needed' when they were pushing it to us residents in the area, but now that the development has been approved, hey guess what, they don't need that school so bad anymore. So, I don't know what's going on, but something really smells here!
GinaMarch 26 at 8:25 PM PT
I am glad someone is finally making sense (Jeff.) Just because The Signal does not agree with The Facilities Foundation's approach, that does not make their action illegal. In fact, this smells like The Signal making up news again, which is a pattern. They go for the big headline every time. For those cynics out there, have you ever even considered if it could be The Signal who is not being candid about their motives? The hospital has a foundation. So does the College. Is anyone interested in auditing their books? Are we going to call their board members names like little children? I demand that the Signal open their books. I want to see the publishers fat salary. Please.
pinkyMarch 26 at 10:10 PM PT
Gina, Let us be clear as to why the residents in Castaic do not want a high school. Please refer to Signal article dated 3/23 by Katherine Geyer “ Plans for Northlake Concern Castaic. “ (SCVTalk.com 3/23 daily briefs) The Castaic Town Council members are concerned about the Northlake development's impact to the community. The development of a high school was included in this (Northlake) development package. There is a serious issue regarding traffic congestion that (incredible as it sounds) has not been taken into proper consideration by SunCal and others directly/indirectly involved with this project. The Signal may/may not be proven wrong… It doesn’t matter to me. I just want the truth…The Facilities Foundation has a fiduciary responsibility to our community. Please let us not muddy up the waters here. My neighbors and I want answers. This high school overcrowding situation should never have reached to this level. Rest assured, The Signal is not the only one asking questions…
MarcMarch 26 at 10:12 PM PT
I am going to do something that is very rare on a site like this. I am going to tell you who I am and what I stand for, because I have nothing to hide. My name is Marc Emmer and I am a Facilities Foundation Board member. I have only been on the Board for 2 months so I am just becoming acquainted with the Foundation’s history and methods. I speaking out on behalf of myself and not for The Foundation. I can see from the posts on this site that many of you have strong opinions, and I respect that. It is part of being an American. I just ask that you all think for yourselves and be fair in your comments. Know that I am not affiliated with the school board in any way. I serve on Boards because I am interested in preserving the quality of life in Santa Clarita for our children. Previous to working with the Foundation I have donated over a thousand hours in community service. I have no agenda, or profit motive, only do serve the residents of Santa Clarita. I have a business based here but do very little business in this valley. What is really troubling is the character assassinations of our Board, which is made of volunteers. Good people who are trying to make a difference. You may not agree with their views, or approach, but that does not make them bad people, and it really hitting below the belt to call their activities illegal. I understand that some people do not like the fact that The Facilities Foundation will sell a portion of the property they acquire for a school to sell to developers. The reality that we face is that planning a school takes years of planning, and millions of dollars. The model used by The Foundation actually produces more money for the district which they can use to buy new schools. If this model was not used, it would take more time, and more money and our overcrowding problems would be worse. To boil down the charter of The Foundation into simple terms, we are trying to buy land that may not otherwise be used; in advance at lower prices. It is common sense. By flying below the radar, we buy land cheaper. We only act, at the specific bequest of the Board of Trustees. In other words, when the District says we need a new school in a specific area, we try to find land at the best value. I am truly shocked by the level of misinformation that has been printed, blogged, and otherwise circulated that is completely inaccurate, or not supported by any facts. I can assure you that I knew that The Foundation had been the center of controversy before accepting the board seat, so I did a fair amount of due diligence. I interviewed some predominate people in Santa Clarita who had worked with The Foundation, and asked some very pointed questions. I would not have accepted the seat had I thought there was any unethical behavior. I can assure you of this: I am not receiving a penny of compensation, nor would I if provided the opportunity. I do not yet know what level or reporting The Foundation will ultimately provide, but let us not forget that every time The Foundation prepares records, or takes time to defend itself in the media, it is being diverted from its work, and is spending money that is to be utilized for acquiring land for schools. There is no requirement that The Foundation open meetings or records or publish an Annual Report. They have so in an attempt to be transparent and meet the needs of the community. But at some point, it just becomes impractical to report every detail. Some have discounted our certified audit, but that is the level of reporting that is accepted in the nonprofit world, and by Federal and State governments. The Board of Trustee Chair has complete oversight. I truly believe that there are some in the media that seem to think they have identified a controversial issue, and they have chosen to leverage that to gain more notoriety. They have no specific allegations of wrong doing, just gossip and spin. In the case of Castiac, it really tragic that our community has not come together and reached a consensus on what should be done. The Foundation bought land there with every intention of making it available for a school to be built on time. If the County and the residents there do not want a school there, they are going to have to be part of the solution in finding another site. I am sure many of you have heard the buzz about “The Secret” and the power of positive thinking. I wake up every morning wondering what I can do to be productive. Others wake up every day looking for what is wrong with the world and I feel sorry for them. So before you type your next message dis-crediting others, at least show us the courtesy of recognizing that we are just people trying to solve problems. Finally, if you really have a problem with the methods, I invite you to go take a look at the High Schools in Sylmar, North Hollywood or Canoga Park. If any of you have a specific question about a specific issue, you can email me personally and I will try to answer your questions: marc@sstus.com
pinkyMarch 26 at 10:29 PM PT
Marc, I agree with you. Name calling and character assasinations are totally unacceptable.The bottom line is that our school overcrowding situation is not looking good.There are MANY players involved here-including the Foundation, School Board, Developers etc...Why is the Foundation putting up such a resistance to opening up their financial/operational records?Please dont tell me that the annual report and 8 yr consolidated Income Statement they recently submitted for public inspection is sufficient for the type of questions our community is asking. Most of the blog comments and newspaper articles that I have read have included many facts that have been verified as true. You can't dispute these facts. Opinions, however, are just that- opinions...My neighbors and I are using FACTS as our basis for asking questions regarding the Foundation's (and school board's ) operations.
MorningstarrMarch 28 at 9:18 AM PT
I appreciate your comments Marc. However, the issue of the foundation has been one of major contention for many many years. The reality is that it is public money that is being used so the public has a right to see how it is being spent. I'm sorry if that is inconvenient, but if the foundation continues to keep blocking efforts by the public to investigate their dealings, then legal action will most probably be the end result. Further, it is inappropriate for the foundation to use this shelter to circumvent local ordinance and laws to build where building would not normally be permitted under the guise of creating another school when they are so desperately needed. I suppose more houses at a profit will make you feel better at the end of the day, but at the end of the day we are still lacking school facilities. The lack of houses is definitely not a problem! The foundation is nothing but a bait and switch program and should be disbanded immediately.