Schools to wait for promised $2 million

Lolita Harper

COSTA MESA -- Schools may have to wait awhile before they see the $2

million promised to them as part of the Home Ranch development, council

members said Monday.

But, they were quick to add, their goal is to get the money

transferred as soon as possible -- after implementing a few safeguarding

measures to protect the principle.

Council members expressed disappointment in the Segerstroms’

preliminary ideas to distribute the promised money to the schools, saying

their input was not sought in the process and, therefore, the plan was

lacking key points. The council decided more work was needed to determine

how the money should be spent and who would be chosen to spend it before

the city turned over the funds to the schools’ foundations.

“We paid a dear price for this money, and we need to make sure that it

is being used in the most effective manner possible,” said Councilwoman

Karen Robinson, who was the only member to vote against the massive

development in November.

The Home Ranch development agreement, adopted last year, calls for the

Segerstroms -- the dynasty family that owns the development site -- to

give $2 million in a lump sum to Costa Mesa high school and middle school

students when the first building permits for the project are drawn. Costa

Mesa High School, which serves those grades, will receive $1 million, and

Estancia High and TeWinkle Middle schools will split the other $1

million.

Ikea is expected to begin construction first, marking the end of a

20-year battle to develop the final 93 acres of farmland held by the

Segerstrom family. Upon pulling the permits, the Segerstroms will cut a

check for the lump sum to the city. The city will, in turn, distribute it

to the appropriate foundations set up by the receiving schools.

Council members negotiated the development agreement, which makes them

the custodians of those funds and entitles them to place conditions on

the money, officials said.

A provision in the proposed agreement reads, “the city of Costa Mesa

shall enter into such agreements as may be necessary with the identified

foundation, or foundations, to ensure that the proceeds identified above

will be used to the exclusive benefit of Costa Mesa students.”

During a presentation by the city attorney’s office, the City Council

considered the following: who should be the directors of the foundation,

should the council appoint some or all of the directors, should the

foundations be governed by the state’s open-government laws, what

restrictions should be placed on the $2 million, who should have access

to foundation records, and should the council give the money to newly

created foundations or to an existing one.

Council members seemed to agree that the foundations should be

governed by the same open-meeting laws as other government bodies and

that the meetings and records should be available to the public.

“I think the Brown Act is ridiculous, but it is in effect and if we

have to go by it then the foundations should also,” Councilman Chris

Steel said.

When council members began to look at who would be asked to serve on

the foundations and how the money would be spent, the opinions became

more diverse and fractured.

Robinson said any community member should have an opportunity to apply

for a seat on a foundation because all residents have paid the price for

the development.

“We demanded this money because of the burdens this project is putting

on the entire community,” Robinson said.

Councilman Gary Monahan emphasized the need for parents of TeWinkle,

Estancia and Costa Mesa High children to decide because the money was

promised to, and intended for, them. Mayor Linda Dixon agreed, saying she

would like to see the parents be able to vote for foundation members on

an open slate.

And Councilwoman Libby Cowan questioned the designation of the funds

for athletic and capital improvements, saying it was her understanding

during negotiations that the funds were to go toward extracurricular and

after-school programs.

While specific opinions differed on various components of the

agreement, the council was unified in the notion that more research and

deliberations are needed.

“I would much rather see a couple members meet with [potential]

foundation members and school officials and sit around the table and

throw some darts out and see where they land,” Monahan said.

His comment was met with nods of agreement by other council members.

Council members agreed to set up a committee, composed of two council

members, as well as school and Segerstrom officials, to work out the

agreement’s details. The council will appoint its committee

representatives at a future City Council meeting that has yet to be

scheduled.

* Lolita Harper covers Costa Mesa. She may be reached at (949)

574-4275 or by e-mail at o7 [email protected] .