Park-plan math equals a win for state

CHUCK DEVORE

Unfortunately, Berenice Maltby’s letter, “DeVore’s park plan uses

fuzzy math” (March 25), repeats some bad financial data to criticize

my plan for saving California taxpayers millions of dollars at El

Morro village. There are four main inaccuracies that require

correction.

First, rents paid by the people who live at El Morro are $2.2

million today, not $1.2 million. The state realizes a cash profit of

$1.2 million with another $1 million going to maintain the 32-acre

village -- maintenance the state cannot now afford as the statewide

parks maintenance backlog is $900 million.

The second critique is wrong as well. For the same reason none of

us can buy a house with $500,000 of loaned money and then simply pay

back $500,000 in equal monthly installments over 30 years --

interest!

One of my bills would provide a $50 million up-front payment to

the state for deficit reduction. The El Morro residents could do this

by taking out a bond, then paying back the bond over 30 years. This

option would have the residents paying $4.3 million per year in rent

with $1.1 million going to maintain the property. Rents would be

escalated per inflation. Thus, average rents would be about four

times the false number claimed.

The third claim deals with the management company that maintains

El Morro village and the connection of that firm with my campaign

finance chairman. Fair enough, but did the letter writer know that I

amended one of my bills several weeks ago to provide for full and

open bidding for both the management company and the available lease

spaces?

Open bidding is fair -- it also forces my critics to focus on the

merits of the plan and not personal attacks. With open bidding,

however, we need to accept that the state may get less money (or

more) than was the case with the original plan which was based on an

appraisal of the lease value of the land (this idea was a follow-on

to a plan developed by my predecessor, Sen. John Campbell).

Fourth, I’ve spoken with the leader of the Orange County Taxpayers

Association and he understands that the math he used to critique my

bills was off significantly as net present value was not taken into

consideration. As result of this, and my open-bidding amendment, the

Orange County Taxpayers Assn. may rethink its opposition.

When the Department of Parks and Recreation developed its plan for

Crystal Cove and El Morro 23 years ago, Jerry Brown was governor, we

had 43 fewer parks, with 300,000 fewer acres of parkland, and our

maintenance backlog was 90 times smaller.

The simple fact is there are park assets today that the public

cannot enjoy for lack of maintenance money. So why are we seeking to

add park capacity that we cannot afford to maintain?

My plan delays the destruction of El Morro village by 10 to 30

years, saves over $10 million in bond money that will have to repaid

from the General Fund, delays the requirement to maintain an

additional 32 acres with tax money, and generates millions for the

state.

* CHUCK DEVORE represents the 70th Assembly District