For the 86th year, taxpayers have provided rent-free office space to the Laguna Beach Chamber of Commerce (CoC). We’re told the city is obligated to do this because of a perpetual agreement from 1937 where the CoC signed over some parcels (on which the library sits) to the city. That telling presents an inaccurate account of what really happened. Back then, the CoC was close to defaulting on their mortgage and was in arrears for property taxes. The city paid the appraised property value to the CoC plus the back taxes and assessments in return for the parcels.
Legally, the “perpetual agreement” is invalid and unenforceable.
When pressed, our dutiful city attorney chose to ignore the question of the validity of the 1937 agreement entirely and instead claimed that council could choose to grant tax dollars as it sees fit. Of course, if the city decides to support the CoC’s mission, it can do so, but appropriate transparency needs to be afforded to taxpayers. The actual value of this “annual lease at $0” is never included in annual budgeting, nor is a formal vote for approval ever taken. This is, at best, poor practice and, at worst, a failure to follow GAAP.
Beyond taxpayers’ providing them free space, the CoC also benefits from the city’s providing them with various service contracts and Community Assistance Grants (CAG). Last year, taxpayers funded the CoC to the tune of $60,000 (67% of total income). They also received over $25,000 in federal PPP funds. Add this to the free office space, and you’ll see that this 501(c)6 entity that is supposed to promote free enterprise is addicted to taxpayer hand-outs.
I find these continued subsidies inappropriate, especially in the November 2022 election cycle, the CoC donated almost $20,000 to a local political action committee (PAC). Shouldn’t recipients of CAGs be prohibited from donating to political entities since taxpayers are forced to indirectly fund these political donations? I call upon the city council to a) condition that CAG recipients be prohibited from making same-year political donations and b) reduce this year’s CAG grant by the amount spent by the CoC on political donations in 2022 and c) properly account for the gift of public funds represented by the free office space they continue to receive at taxpayer expense.
Michael Morris, Laguna Beach
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For clarity, the financial figures come from the CoC’s 2022 CAG application, and so, represent their 2021 income figures.
Michael,
You’ve posted this conspiracy for the umpeenth time. I even sat down with you and Zinc Cafe and tried to answer your questions.
It was a good deal for the City to get this property from the Chamber. Had the Chamber kept this property, it would be worth more than $4 million. The Chamber was actually formed before the city was incorporated and they helped form a city government. They have been a value to the community. I’m sorry you hate the Chamber so much, but they are not responsible for all the tourism.
Move on and find a more worthy conspiracy.
For clarity, you should explain what you believe the 60k in taxpayer funds is. Could it be for the lighting that the chamber pays to put on Hospitality Night? Hmmm….
You ought to backup your claims Michael. That’s why Q failed. You couldn’t.
Great letter Michael, this is a definite issue and waste of taxpayer dollars, so the chamber then donates to a political PAC, seems unethical and the letter above, hysterical, for all that money they pay for lights on Hospitality night…LOL. I would say we are being robbed without a gun..
Doug – You’re such a beneficiary of the CoC, you fail to see how it continues to pick the pocket of tax-payers without restraint and how that might be inappropriate in the view of those who don’t suckle at its teat.
Do you think its appropriate for an entity to come hat-in-hand for tax-payer funds (CAG), and then turn around and make a $20k donation to a PAC? Yes or No?
Michael,
I explained this to you in person. Past grants received were restricted for programs such as Think Laguna First, meaning those funds could and were spent only on this. There are plenty of organizations in Laguna receiving hundreds of thousands in tax paid subsidies. The Chamber isn’t one of them. They don’t receive 1 penny of transient occupancy taxes that Visit Laguna does.
By the financials you mentioned, you can thank me for our transparency. Much more transparent than your LRF PACS that appeared to violate FPPC rules in failing to register as a primary recipient committee while creating a second PAC to attack city employees. All Chamber activities were vetted through the FPPC as a 501c6. Feel free to verify this.
I’m not sure what your obsession is, but had voters listened to you our city would have been sued by the state as is happening to Huntington Beach.
Thank you Mike Morris. I think many residents are aware of some of the sweet deals the LB Chamber of Commerce (CoC) gets from our City but you present a much bigger and clearer picture. 67% of their budget is from the City? If correct, it sounds like this private organization would fold relying only on the businesses who sign up for their promotion services.
I agree wholeheartedly with your statement: “I find these continued subsidies inappropriate, especially in the November 2022 election cycle, the CoC donated almost $20,000 to a local political action committee (PAC).”
And while the CoC readily accepts City subsidies like CAG funds and other in-kind support to stay in business and build their influence and power, they allow several of their Chamber Board members to go after locals politically and publicly who speak to City business issues. I find this a slap in the face to all LB residents.
As for the comment above about experiencing a failure in the political arena, this individual should know. We all know that the building protection measure in the last election lost due to the injection of big outside investor/developer monies, their scare tactics and self-interest property owners and businesses hoping to make a killing off of the Laguna Beach reputation which most had no hand in creating.
I hope the City Council takes into consideration the information you have supplied as they exercise their authority to distribute free money and/or in-kind support within our city.
MJ,
As the Chamber did not appear to apply for a grant this year, there won’t be much for council to consider.
Also, caiming that measure Q lost only because it was outspent really is disrespectful to voters. Apparently you don’t think they were able to make an informed decision on their own
Doug Vogel – I believe I was clear about what I think. I have faith in well-informed Laguna Beach voters but we all know that the “Don’t be Fooled” Campaign scare tactic’s saturating our City with property rights BS was primarily funded by national self-interest real estate, investors/developers, businesses and organizations like the Chamber contributing to super PAC’s to squash any measure that threatened their ability to control our City. Some of their mouthpieces (ND ring a bell?) even had residents thinking their homes were at stake. Let’s all be honest and real.
As for annual City grant awards; I don’t care what nonprofit gets free City or other money as long as they aren’t using it to feed political machines that work against residents. Apparently, the CoC did and I don’t support that. I have the same problem with giving the “radio station” more money each year and then having them blatantly promote a Council member verbally abusing residents. Insulting and disrespectful.
FYI – there’s lots of research on mega-spending effecting elections. It’s all about the money, connections and PR messaging/sound bites today. It surprises me that someone like yourself who is so openly vocal about others government and political views and who ran for public office in another city isn’t more aware of the concerns that big spenders are controlling outcomes. Thanks.
MJ,
I followed both sides arguments on the issue. No one lied more and provided more scare tactics then those promoting meaure q. They sat at a table im front of the farmers market showing pictures to people of apartment complexes in Huntington Beach and scaring voters into thinking we would become that unless Measure Q was passed. Same argument used on Next Door. Not sure what real estate or invester scare tactics you think was used but “don’t be fooled” is a strategy. It’s not really that scary. Not nearly as scary as the censoring of folks on Next Door by leads and reviewers who were supporters of Village Laguna, Laguna Residents First, and Messure Q and didn’t want those against Q to speak.
What is even scarier is that the same individuals targeted my wife and I using a personal loss of our child for their own political gain. Completely disgusting.
Luckily, this is not Next Door and so I don’t have to worry about my comments disappearing. You can say what you want, but alternative facts are not truths. All Chamber financial information is public and anyone can seek it out and find out the truth themselves. There was full transparency in donating to a PAC and zero percent was taxpayer money. To say otherwise is libel.
Doug Vogel. We all followed both sides of the argument on the MQ. You’re entitled to your views and opinions. I completely disagree with your assessment and we don’t have to agree. I stand by “MONEY and POWER” wins out and this local measure funded by primarily outsider real estate and development funding proved it to me.
Also, we’ve had many private conversations about local individuals, our politicians, the Chamber, the Playhouse, community politics and legal issues over the last couple of years since you moved here. In fact, I learned a lot from you I didn’t know. I’ve also watched your personal communications on the community platform ND over the years. IMO, your accusatory political and personal comments directed at residents is what I believe got you removed from the site. Remember, ND Reviewers aren’t all from our City and they apparently decided you had violated their guidelines too many times. Sorry, I don’t buy into blaming others for ones actions. As you well know, some people can have multiple accounts by just altering their names. If you stay within the respectful posting guidelines you have nothing to worry about. Good luck.
The gentleman doth protest too much.