C I T Y L I G H T S
and Middletown. “The Uptown Planners,
while well intentioned, hasn’t represented Hillcrest well at any time I’ve been involved in Hillcrest,” writes Nicholls in a June 17 email. “Only two years ago, the Uptown Plan- ners had no Hillcrest repre- sentation, residential or com- mercial, at all. The [Hillcrest Business Association] then made the decision to for- ward our comments and ideas directly to city staff rather than through a group that had no Hillcrest repre- sentatives. While the Uptown Planners have a more repre- sentative roster at this point, even today I don’t believe that our members’ input would get a fair hearing.” What makes the move
unusual is community-wide planning issues are not typi- cally in the purview of a busi- ness improvement district. Business owners in
improvement districts such as Hillcrest’s pay an annual assessment. Proceeds are then directed to a nonprofit corporation that manages the district and disburses the funds for projects that improve the area with the goal of making it better for business. For added revenue, the nonprofit throws special events and administers farm- ers’ markets. But the nonprofit associa-
tions must adhere to strict guidelines regarding how they use the assessments. The enabling ordinance that gov- erns the Hillcrest Business Association “strictly limits” the districts to the follow- ing activities: “advertising and promotion of the area; cleanup and landscaping of public right-of-way; news- letter to [business improve- ment district] members; holi- day decorations and business development in the district.” So, where does lobbying
city planners and working to sidestep local planning groups fit into that? Nicholls says it doesn’t have to. His salary is paid
C I T Y L I G H T S
C I T Y L I G H T S UNDER THE RADAR
for by events and fundrais- ing, not with assessments. That leaves him free to lobby whomever he and his board want. In addition, Nicholls says he is only following what his board has asked of his predecessors.“Every board president that has overseen the [Hillcrest Busi- ness Association] during my tenure has advocated that we be part of the [commu- nity] plan update. I follow this direction.“ The board asked him to
intervene in planning issues as a result of what he calls a desire by many Hillcrest resi- dents to “stifle business.” Nicholls says capping
height limits, failing to increase density, and desig- nating much of the business district historic, all items ini- tially written into the draft community plan, smothers future growth. To stymy their anti-
business platform, Nicholls teamed up with the Uptown Gateway Council. The group, as reported by the Reader, included some of Hillcrest’s largest property owners and was represented by land- use lobbyist Marcela Esco- bar Eck. In early June, members of
the Uptown Planners were shocked to learn that city planners had fallen in line with the Uptown Gateway Council and the Hillcrest Business Association. Hillcrest resident, busi-
ness owner, and planning group member Mat Wahl- strom has battled Nicholls for years, accusing him of
turning the association into a rogue organization that caters to developers and influential property owners, not the local business people. “[Nicholls’s] efforts on
behalf of absentee landown- ers and outside developers don’t provide even an indi- rect benefit to the assessed local businesses. Adding to that, the Hillcrest Busi- ness Association, which is funded by tax dollars and as a 501(c)6 is supposed to act only on behalf of all of its members equally, has been working with these outside developers as their agent.” Michael Wright owned
City Deli, formerly located at the corner of University and Sixth avenues, in the heart of the business district. During his years as a business owner and Hillcrest resident, Wright served on numerous boards since the ’80s, including the Hillcrest Business Associa- tion. Wright is unhappy with the new enhanced scope of services that Nicholls and the business association have adopted. “Plain and simple, this
is not the business associa- tion’s mission,” Wright said in a June phone interview. “They should be working directly with neighborhood businesses, promoting them. They also need to ensure that alleys are clean, trash and graffiti is removed, making it more inviting for residents and visitors. It’s not glamor- ous work but it’s what the business association is there for and what these local busi- continued on page 33
All the mayor’s moneyed friends A high-dollar charity blow-out “hon- oring” San Diego mayor Kevin Faulconer three days before San Diego’s June 7 mayoral election drew a bevy of the city’s wealthi- est politicos and special interests, according to a behested payment report filed by the mayor July 5. Held at the Hotel del Coronado, with net proceeds going to the San Diego chapter of the USO, the lavish gala attracted $30,000 from the nonprofit Issa Family Foundation run by Lebanese- American Republican congress- man Darrell Issa, said to be the wealthiest member of the House. Other causes favored by the foundation run by Issa, who has endorsed Donald Trump’s presi- dential bid, include an Underwriting Gala for the American Task Force for Lebanon, with $57,000, and the Arab American Institute Foundation, which got $5000, says a 2015 disclosure report. In addition, Issa’s foundation kicked in $50,000 to the well-heeled Rancho Santa Fe Foundation, and gave $20,000 to the San Diego Blood Bank Foundation for its Chargers blood drive. North County’s Issa has been a key backer of the pro- fessional football team’s controversial November ballot bid for a tax-subsidized stadium in down- town San Diego. In addition to Issa’s contribution, the Sid and Jenny Craig Foundation, run by diet maven Jenny Craig, who also backs Trump, came up with $5000 for the USO bash. According to the website of the California Fair Political Prac- tices Commission, “a behested payment is when an elected official or a member of California’s Public Utilities Commission solicits a donation from someone for an organization,” such as a nonprofit. “The donation must be used for legislative, governmental or charitable purposes, and it is not considered a campaign con- tribution or gift. While state law limits the amount of cam- paign contributions and gifts, there are no limits on behested payments. However, the official must report behested payments of $5,000 or more made at his or her request.” Faulconer’s wife Katherine, billed as “first
lady” in a Union-Tribune advertisement for the June 4 Coronado blow-out, was listed as co-chair of the gala. Not credited among the $5000-and- up donors on Faulconer’s behest list but present for the fundraiser, according to the Rancho Santa Fe Review, was retired admiral Ronne Froman and General Atomics co-owner Linden Blue. The La Jollan is the maker of the Predator drone.
Kevin Faulconer and friends (clockwise from extreme right: Jenny, Linden, Donald, Ronne, and Darrell)
Defense contracting giant Northrup Grumman, with a competing line of killer aerial robots, gave $10,000. Grand total of the cash raised at the mayor’s behest was $356,100, according to Faulconer’s city filing. But how much the USO actually netted from the posh may- oral tribute and what was spent on the evening’s food, booze, entertainment, and promotion won’t be made public until next year, when the military charity is sched- uled to file its 2016 financial disclosure with the IRS.
Lori’s loan Democrat-
turned-independent Lori Saldaña, who placed third in last month’s race for San Diego mayor, is looking for more campaign cash for a low-five- figure post-election personal payback. “I will formally close my campaign account at the end of July,” says a fundraising email to hoped-for financial angels from the ex-assemblywoman. “We made it clear San Diego needs a Mayor who is willing to work on issues like improving public safety, closing the income inequality gap, provid- ing more affordable housing and improving sup- port for people who are homeless…. However, I need your help to pay some final campaign debts.” According to her most recently posted disclosure statement, for the period ending May 21, the campaign fund had outstanding debts of $11,270, with the $10,000 owed to Saldaña herself for a personal loan she made on Janu- ary 19. Expenses included $7500 paid to cam- paign manager Michael Kreizenbeck and $1000 for treasurer Simon Mayeski. As of the end of the period, $50,101 had been raised and $47,598 spent. Donors included Android software developer Carl Manas- ter, who used to work for ResMed, the medi-
Lori Saldaña seeks to recoup a campaign loan
cal device business run by Republican kingpin Peter Farrell, a major contribu-
tor to Kevin Faulconer’s political funding and nonprofit One San Diego. Manaster kicked in $1050, as did attorney Cory Briggs, whose hotel- tax-hike measure will appear on the November ballot. Democratic school-board member Kevin Beiser came up with $250. — Matt Potter (@sdmattpotter)
The Reader offers $25 for news tips published in this column. Call our voice mail at 619-235- 3000, ext. 440, or
sandiegoreader.com/staff/ matt-potter/contact/.
San Diego Reader July 21, 2016 3
PHOTOGRAPH BY CHRIS WOO
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