Zoo relocation project approved, but ability of Sacramento Zoological Society to raise $50 million put into doubt
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| Sacramento Zoological Society executive director Jason Jacobs (left) and board president Elizabeth Stallard attacked Elk Grove City Councilmember Kevin Spease when he asked about the validity of their financial commitment for the Sacramento Zoo relocation project. | |
Even though the Elk Grove City Council approved the Sacramento Zoo relocation project last night, it was only done after the zoo's operator, the Sacramento Zoological Society's ability to raise money for the project was put into doubt.
After hearing over four hours of staff presentations and public comment, the Elk Grove City Council voted unanimously to approve administrative steps for the massive $300 million project. Those approvals were for the environmental report, establishing a special planning area, modifying the trail plan, and changes to the city's facility naming policy for zoo buildings.
After discussing the first four administrative approvals, the city council took up the fifth item, the financing terms, with the SZS. Councilmember Kevin Spease laid out four demands, most notably that the city have cash in hand from the SZS before any onsite construction starts on the zoo.
Most significantly, Spease pressed for a firm commitment from the SZS. The SZS has committed to raising $50 million toward the construction cost but has been vague about the cash it has on hand, and when it would be turned over to the city for construction costs.
"As written, I cannot support the proposed financing plan. This is an extremely large complex project to be funded on the back of Elk Grove taxpayers," Spease said. "It creates liability and those liabilities are not mitigated adequately in the proposed plan. This project carries too much risk for the taxpayer and may dramatically limit our capability to respond to future alternative projects."
As part of the financing, the city will issue $114 million in Elk Grove taxpayer obligated bonds, and will use $93 million from the city's various accounts. The SZS will pay $50 million toward construction.
Recognizing the work of previous city councils, Spease said the city is on a great trajectory. However, the project could negatively affect the ability to address other pressing issues afflicting municipalities nationally. Among the issues he included were public safety, homelessness, mental health, youth violence, crime, and underemployment.
"Unlike so many other jurisdictions, we could truly be transformative," he said. "It's my opinion that future generations will judge us harshly for this missed opportunity."
Spease added, "The $50 million for the SZS has to be in our account before we turn shovels."
Along with saying the city had to have the SZS money in hand, Spease also recommended the formation of a citizen's bond oversight committee. Councilmember Rod Brewer and SZZ representatives angrily responded.
First to take aim at Spease was Councilmember Rob Brewer, who said he felt he had been sideswiped by the proposal first made in a public meeting and was "pissed" about Spease's suggestions. Brewer demanded that he should have been told about Spease's intentions, which violates the Ralph M. Brown public meeting Act.
"This is the first I heard of it tonight. If I'd known about it couple of weeks ago, or a week ago, or on Saturday I could have digested it, but this is the first I heard of it," Brewer said.
Brewer went on to say he was "pissed" because Spease "dropped it on them right now, today. This is the first I heard of it."
Recognizing Brewer violated the Brown Act, Singh-Allen spoke over her protege, saying, "We have Brown Act issues that prevent us from having that conversation."
At the same time, Spease also attempted to say before being interrupted that he was not allowed to discuss such matters.
Also targeting Spease were SZS executive director Jason Jacobs and board president Elizabeth Stallard. Both took exception to Spease's request that the funds donated to the SZS be secured and given to Elk Grove before any construction on the 68-acre zoo parcel begins.
Jacob and Stallard attacked Spease when they reappeared at the speakers' podium. Jacobs said Spease's request is casting doubt on donors over the project's viability.
"I am going to be honest with you and tell you people who are watching tonight, we have to give this community confidence that this is going to happen, right?" Jacobs said.
Jacobs said they received promises of $15 million before the project was approved.
Spease responded, "You are not in the $50 million point yet. My point is you got four years to get there, and I am not interested in putting our taxpayers at risk."
Stallard said the SZS requested a meeting with Spease, which she said he declined.
"We would have loved to talk to you about these issues, but you indicated you didn't want to talk about any of these things," Stallard said.
Spease immediately shot back, "I did not indicate that I didn't want to talk to you about anything; I said I did not need an update on the project, mam. Let's be very clear about what you asked."
He added, "I just want the record clear, mam; I did not say I did not want to talk to you. Let's be clear on that."
Lost Opportunity
During public comment, over 40 people signed up to speak. All but four were in favor of the project.
One of the dissenters was Elk Grove resident Lynn Wheat, who didn't criticize the zoo per se but asked about opportunity costs. Wheat noted the city had the capacity to raise about $250 million that could be used to establish the city as a cultural center.
Wheat concluded by saying "A golden opportunity missed."
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11 comments
Kudos to Spease for trying to break Elk Grove's reputation as an easy mark. But alas, the grifters and political opportunists are still in charge.
Kevin Spease is clearly the only one with the spherical objects to save the taxpayers from the latest vanity project. I will 100% support him and fundraise for him should he run for mayor. Of note... he is also the only one with any real world business experience.
If you didn't know better, you would say Kevin was a liberal. He talked about public safety, homelessness, mental health, youth violence, crime, and underemployment. Surprise, surprise, he is the only Republican on the city council. He sure put those four so-called liberals to shame with his humane approach to pressing social issues.
Mark my words: This zoo will bankrupt the city of Elk Grove. One half billion dollars! The city of Elk Grove will spend itself into a deficit and will very easily get in over its head in debt.
And just like Vallejo, Elk Grove will be in a world of hurt. Not to worry, Orange County, CA which declared bankruptcy in 1994. To date the OC was — and still is — the biggest municipal bankruptcy in U.S. history. Elk Grove will relieve you of that legacy.
Was it just me, or was Jason Jacobs overly defensive?
And to Kevin Spease, kudos to you! You are on record for perpetuity.
Kevin went way off script last night. The big boss, she ain't gonna like that!
Lost in the euphoria last night and buried deep in a staff report attachment:
"There are several CFDs in the City of Elk Grove. Two such districts have been identified as potential sources for financing the proposed Project.
o Poppy Ridge CFD.
This CFD’s infrastructure component is used to fund construction or
reconfiguration of various public facilities, including public facility improvements, including parks. The City has reviewed the formation documents for this CFD and has determined that the proposed Project qualifies as a park facility and, as such, is eligible for these funds.
Laguna Ridge CFD.
The Laguna Ridge CFD infrastructure program provides for the construction of various street improvements and other public facilities generally within the Laguna Ridge and Sterling Meadows neighborhoods, which are named in the CFD formation documents. Lotz Parkway is a named facility and is located immediately adjacent to the Sterling Meadows neighborhood. As such, some of these funds may be
According to the Laguna Ridge CFD Guiding Principles, a used to construct Lotz Parkway. portion of the CFD proceeds are specifically assigned to the City for expenditure".
I commend Mr. Spease for taking such a stance. It's important to know that he is the only business owner of all the council members, the only conservative, and also the only one who doesn't lust for selfies and pictures at any given chance.
Where were the Old Town policy influencers?
Hold on to your hat Sid! It is very clear there is large support for the Zoo but it is also clear Mr. Spease is correct. Let’s not lose sight how the Zoo got in this position as the Sacramento Mayors and all their council members over the last few decades allowed the Zoo to get in the shape it is today. So until the 50 mil is in the bank no shovels should turn any dirt on the property. So Sacramento politicians and businesses needed to step up or face the embarrassment of the loss of this project and the future of the Sacramento Zoo.
Your point of view is a day late and should I say $50m short. You could have supported the few who testified this projected needed proper funding assured before shovels hit the dirt to protect EG taxpayers from picking up the tab when the finance plans fails. You have the voice they listen to, perhaps you could have made a difference. This project compared to Oak Rose is so much more consuming yet you were never heard from. Until now. Just a little late.
Steve, you should never question what I do behind the scenes. You would be surprised! As far as the meeting I am not always in town nor do I schedule my life around the city council meetings. What I find important are things happening right now or in the near future. At best the Zoo is 4-6 years away at best, that is not the near future. The question of funding was only direction to staff. The funding of the Zoo will come in front of the Council in the future.
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