An Old Town landowner capped months of behind-the-scenes probing last week by publicly grilling three Temecula City Council members on possible conflicts of interest between their business and government dealings.

The three council members bristled sharply during the meeting, saying Al Rattan’s comments were incorrect and politically motivated. Councilman Mike Naggar described the accusations as "mired in political agendas" and said he was glad that a "whispering campaign" had finally surfaced publicly.

Mayor Chuck Washington and Councilman Jeff Comerchero also rebuffed Rattan after he asked whether "a series of improprieties and conflicts of interest" existed over city land deals and construction of the Old Town community theater.

Naggar said he interpreted Rattan’s criticism as a prelude to a November 2008 council race, when the seats held by him and Washington become open. Naggar challenged Rattan to "bring it on" if his comments were meant to politically discredit the incumbent councilmen prior to that election.

Rattan responded that he cannot run for the council because he lives outside city limits. He said he is part of a fledgling watchdog group that plans to field one or more candidates for that election. He said a web of business or personal ties that Comerchero, Naggar and Washington have with the Rancon Group – a Murrieta-based development, real estate and business services company – raise questions of potential conflicts of interest.

Rattan is the homes developer of the Renaissance Estates project in rural De Luz west of Temecula. He has also proposed a trio of residential and commercial projects in Old Town Temecula. Project approvals are still pending and construction has not begun at any of the Old Town sites.

Rattan has also pressed for city support of a river walk setting alongside Murrieta Creek in Old Town. Temecula officials have shown little interest in the concept, saying it could interfere with a federal flood control project that has improved a segment of the flood-prone tributary of the Santa Margarita River.

The first exchange between Rattan and the three council members occurred during a Sept. 25 review of plans to develop much of an 82-acre parcel in the city’s northwest corner for a 608,932-square-foot expansion for Professional Hospital Supply, one of Temecula’s largest employers and tax producers.

The second exchange took place prior to the council’s approval of a recommendation to sell up to $17.5 million in bonds. The bonds, approved by the council, would be used for redevelopment projects to include a parking garage at the Promenade mall and a parking garage next to a future City Hall in Old Town.

Rattan has repeatedly questioned the need for a new City Hall and whether Old Town is the best location or those designated funds should be spent elsewhere.

Rattan said he did not oppose the Professional Hospital Supply project, which was subsequently approved unanimously by the council. He said he made his comments during that agenda item because the developer of the entire 82-acre parcel, the Garrett Group, has done business with Rancon.

Rattan questioned whether Advertisement
Comerchero should abstain from participating in the discussion or voting on the project because the councilman is president and chief executive of Rancon, which has developed vast tracts in the Temecula, Murrieta and Menifee areas.

Comerchero acknowledged that Rancon was involved two years ago in a "tangential" development partnership with Garrett in the Newport Road area of Menifee. Comerchero said he had discussed that business connection with City Attorney Peter Thorson prior to the Sept. 25 council meeting.

In responding to Rattan, Comerchero and Thorson each said the councilman did not have a conflict of interest in connection with the PHS project. Comerchero said he has frequently conferred with Thorson to avoid potential or perceived conflicts of interest.

Garrett representatives did not address Rattan’s comments when they had an opportunity to respond during the session. The Temecula-based company developed Redhawk and several commercial buildings in the city. It also owns an extensive portfolio of real estate and commercial properties.

Rattan said Naggar should also consider abstaining from the PHS vote because his Perris-based development consulting business has ties to Rancon that were not listed in his state-mandated economic interests form.

Naggar said he was not obliged to list many of his business interests because they are not within or near the city. Naggar said Thorson has also repeatedly examined Naggar’s business interests, and the attorney cleared him to vote on the PHS project as well as other instances cited by Rattan.

Comerchero described Rattan’s comments as "a pretty awful display." He added that Rattan’s research and rationale were flawed.

"Your facts are nowhere near correct," Comerchero said to Rattan.

Rattan said Washington might have had a conflict because he served on the board of a community group that raised money to help build the city’s Old Town community theater. Rattan said the theater boosted Rancon’s profile in Temecula, and Washington might have aided that effort by voting for the public project.

Washington also relied on Thorson to address that connection and reject Rattan’s arguments.

Rattan sparked the second verbal exchange in a subsequent agenda item that included funding for a parking garage along with a new City Hall and civic center in Old Town. He noted the steadily climbing costs that occurred during construction of the community theater and questioned whether the City Hall budget has also spiraled as planning progresses. He also said Temecula redevelopment officials have not provided detailed accounting of many of their projects.

Council members also rejected that tack, saying city projects get fine-tuned as planning progresses, design improvements are made and new equipment added. They said redevelopment projects and budgets are reviewed and approved publicly and frequent reports are given by staff to track spending.

Councilwoman Maryann Edwards said the city always strives to build the highest quality buildings and facilities for its residents.

Washington conferred again with Thorson and concluded that he was satisfied he and the other council members had adequately addressed and countered Rattan’s complaints and statements.

"I think we’re doing a good job," Washington said.

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