top of page
Search
  • stopbchd

$152M = allcove Beach Cities 30 Year Cost & Risk Obligation to District Taxpayers for a $6.3M State Grant

Updated: May 3

(all key assumptions and findings of the analysis are footnoted and appears at the end of the text)


$152,290,170 is the estimated combined direct cost and 30-year risk assumed by District Taxpayers as a result of BCHD's $6.3M allcove building's construction grant


BCHD didn't even bother to conduct an analysis! (FN1)


SO WE DID!



$4M District Taxpayer contribution to development of the allcove Building (FN2)

In its recent Strategic Development Half Day Meeting, BCHD presented the costs of the allcove Beach Cities building and the amount that is unfunded. BCHD is currently exploring a bond measure to force taxpayers to fund it.



$9.6M District Taxpayer contribution of Free Land Rent to the allcove Building (FN3)

In a Public Records response, BCHD stated that it was not going to charge allcove Beach Cities (a 91% non-resident service area (FN4)) any rent for the 30 years of land use. The free rent amounts to nearly $10M of funding for services lost to district residents and transferred to the allcove 91% non-resident service area.



$24.7M District Taxpayer Contribution Due to BCHD-Predicted Shortfalls in allcove Annual Operating Budget Funding  (FN5)

BCHD is forecasting $500,000+ annual excess expenses to the allcove Program. In that absence of 30 years of $500,000 or more annual funding to the allcove Program from non-resident sources, District Resident Taxpayers will be forced to make up the shortfall to assure 30-year operation.



$9.9M District Taxpayer Risk Obligation for Required 30-year allcove Building Operations (FN6)

BCHD is required to operate the allcove building for 30 years as part of its acceptance of the $6.3M BHCIP State grant. In the event of any funding shortfalls, BCHD "commits to the provision of services and building use restrictions." That obligation falls squarely on taxpayers as a backstop should BCHD be unable to secure 30 years of grant funding. BCHD currently has no funding beyond 2026 according to its current budget documents.



$104M District Taxpayer Risk Obligation for Required 30-year allcove Program Operations (FN7)

BCHD is required to operate the allcove program along with the allcove building for 30 years as part of its acceptance of the $6.3M BHCIP State grant. In the event of any funding shortfalls, BCHD "commits to the provision of services and building use restrictions." That obligation falls squarely on taxpayers as a backstop should BCHD be unable to secure 30 years of grant funding. BCHD currently has no funding beyond 2026 according to its current budget documents.



WHY DID BCHD PUT DISTRICT TAXPAYERS AT RISK FOR $150M+ IN TRADE FOR ONLY $6.3M IN GRANT FUNDING?




FN1 - In a Public Records response, BCHD was unable to provide any 30-year analysis



FN2 - BCHD's Presentation - $552K BCHD "match" + $3.5M Building Improvements


FN3 - Computation of Free Rent Subsidy to allcove from District Taxpayers



FN4 - allcove Service Area (LA County SPA8)



FN5 - Predicted District Taxpayer Annual Funding to allcove Shortfalls

allcove funding shortfalls from BCHD's current budget book




FN6 - District Taxpayer Risk Obligation for REQUIRED 30-year allcove Building Operations

  Application for funding requirement "c. Applicant commits to the provision of services and building use restrictions (property title shall be legally encumbered for required term) for 30 years after the project is placed in service."




FN7 - District Taxpayer Risk Obligation for REQUIRED 30-year allcove Program Operations

  


103 views1 comment

1 Comment


Krista Allen
Krista Allen
May 15

This is government malfeasance. Time for as tax revolt like 1978 and Prop 13. Please vote in November for the taxpayer accountability Act

Like
bottom of page