The strange case of the Hacienda Beach Club in Palm Springs continues. Earlier in the week, the club announced it was ceasing daily operations to switch to an "event" only mode. This of course drew a lot of interest because the owner of the club is Rich Meaney, the controversial developer who appears to be a focal point of a Federal anti-corruption task force. More specifically, the feds interest appears to be the relationship between Meaney and outgoing Mayor Steve Pougnet.
The switch to event only mode appears to be in order to keep from having to repay the city the $250,000 in grant money that was advanced to the Hacienda by Palm Springs.When financial questions about the Hacienda were first being raised, City Manager David Ready said the $250,000 was guaranteed to be paid back. He never specified how. This has raised at least 2 pertinent questions.
Why is David Ready acting as a spokesman for Rich Meaney? Mr. Ready has been explaining how the owner now wants to extend his liquor hours after 6p and may make an application to extend the playing of amplified music. That is all well and good but why not hold a hearing where Meaney has to come and state this in public? I bet I can answer that. If Meaney, who has disappeared faster than you can say Claude Raines, surfaces in public, he may have to answer questions about his financial relationship with Steve Pougnet.
Also, why were these grants never secured with surety bonds to guarantee repayment if the recipients had financial problems in the first 3 years? 30 years ago, I worked for the then 2nd largest insurance brokerage in the world. A surety bond simply guarantees repayment if a project falters. The premiums are usually cheap because the underwriters look at the financial wherewithal of the parties involved. They only agree to write bonds on companies that have a proven track record or solid financial footing. The lack of a bond in place for the Hacienda indicates to me that either Mr. Meaney could not pass muster with an insurance company or the city didn't require one. Either way, hardly inspriring.
Now of course in the long run, 250 grand is a mere pittance in the city's coffers. But what this incident does highlight is a lack of due diligence by the city. Whether that lack of due diligence was caused by incompetence, lack of attention to details or more outside sinister factors should be determined in the next few months.
Steve Kelly can be reached at skelly@rrbroadcasting.com
I'm glad we had a clean sweep in this last election.
ReplyDeleteBetter question: why was the money granted in the first place given that
ReplyDelete1) the only paperwork presented were expense sheets (including lunches, etc.) rather than invoices for completed work and
2) six, count 'em SIX, sub-contractors had not been paid. They had to sue to get any attention.
I understand that most of the complainants have now "settled" but, as with most deals struck behind closed doors, we don't know for how much. The last I heard, there was one hold-out.
As to the extended hours of bar service and amplification. Does no one remember how bitterly disputed the prospect of live music was when the project was still in its planning stages??? Has anyone checked for any noise complaints on file from the TRENO neighborhood which faces the Cantina? And how about the Dakota???
It was an insane project then and a proven bad judgment call NOW. It was never going to be a success as anything BUT an event place. The residents, if highly motivated, use our public pool. And tourists have pools at their hotels. The market for this venue is strictly limited to Splash Parties and the like.
And good luck trying to get any money back from ANYbody! Whatever happened, for instance, to the $30k given to the non-existent soul-food restaurant on the north end? Ready said they were going to get that back, too.
BTW, you might want to check the spelling of dear Claude's last name. ;}
Roxanne,
DeleteI believe that Mama Ola's Soul Food is now open. You should try their catfish or pulled pork sometime.
Steve Rosenberg