Mayor Steve Aspel vetoed a motion by District 2 city councilman Steve Sammarco to publicly review the financial information of potential Waterfront project developer CenterCal Properties and their financing partners, Westport Capital LLC.
The motion came at the end of an otherwise placid meeting of the City Council Tuesday night.
“I’d expect any developer agreement to include information allowing the city to determine their ability to finance the project before approval,” Sammarco said, motioning to direct the City Attorney’s office to perform research in regards to CenterCal and Westport’s financial statements and credit reports.
District 3 Councilman Christian Horvath asked aloud if that wasn’t already part of the closed-session negotiating process between the City and the developer.
“He’s asking for a public document to be researched as to their strength,” Webb clarified.
Though Horvath seemed uncertain in his support, the motion passed 3 to 1, with District 5 Councilwoman Laura Emdee opposed, and District 1 councilman Jeff Ginsburg (who left the meeting early) absent.
Aspel vetoed the motion in short order.
In an email after the meeting, Sammarco was incredulous. “Why on earth would the Mayor veto it?! The reason to include that kind of information in advance is to make sure that the developer is not at risk of being unable to complete a project,” he wrote. “Such provisions only serve to protect the City and do not harm the developer if the developer is legitimate.”
Aspel’s reasoning was simple.
“Westport Financial is a sound corporation, and they don’t have to show us their books — if CenterCal is satisfied then I’m satisfied,” he said. “If they don’t have the money, we’ll know long in advance.”
Aspel said that the move by Sammarco was designed solely to slow down the project, and that if it came down to it, and there was enough demand, he’s willing to put up the money to pay for credit checks himself.
“I don’t have any doubts in CenterCal’s or Westport’s ability to finance this project,” Aspel said. “Every frivolous question that people ask about the project is intended to slow it down; there’s no need to delay this project for frivolous reasons.”
The finalized Waterfront project Environmental Impact Report is scheduled to be ready by mid-June, and will then be presented to the City’s Harbor Commission for certification.
