Friday, October 14, 2005

Covert Operations and A Savvy Developer

Michael H. Covert should think about resigning for entering into a contract that gives JRM-ERTC total control over Escondido's healthcare future.

James R. McCann and JRM-ERTC should immediately renounce all rights granted under paragraph 4.2.6 of an Agreement signed March 18, 2005, by Michael H. Covert of the Palomar Pomerado Health District and by James R. McCann of JRM-ERTC (apparently a joint venture of JRM Holdings Inc. and Sempra Energy Resources).

A Covert Operation to favor JRM-ERTC with a hidden no-bid contract to construct buildings at the ERTC hospital site was uncovered in early September. The right to demand the hidden no-bid contract is in paragraph 4.2.6 of the Agreement. See entry of Friday, September 02, 2005.

This paragraph is interpreted to grant JRM-ERTC total control over the question of whether the new hospital will be built in Escondido since PPH refuses to build the new hospital anywhere in Escondido except on the JRM-ERTC property.

The uncovered no-bid contract has been under "negotiations" since March 18. In 7 months, JRM-ERTC and PPH have been unable to arrive at mutually acceptable terms for the uncovered no-bid contract!

The uncovered no-bid contract was initially due April 17, 2005.

After being uncovered, PPH made up a new "deadline" of October 14, 2005. A correction published in the NCTimes on September 9, 2005, reporting the "deadline" is at the following link:
http://www.nctimes.com/articles/2005/09/09/
news/inland/escondido/23_55_079_8_05.txt


On October 13, the day before the "deadline" -- a new "deadline" was announced:

"Palomar Pomerado Health and Escondido developer JRMC Real Estate have extended a deadline for discussions about the 300,000 square feet of medical office space that would accompany the district's new hospital."
. . .
"The deadline for those negotiations had been set for today. However, the district announced Thursday that the two parties mutually agreed to extend the deadline until Nov. 18."
. . .
"Failure to reach a development deal could allow JRMC to back out of the purchase agreement."
See the full report in the NC Times at:
http://www.nctimes.com/articles/2005/10/14/
news/inland/poway/22_32_2810_13_05.txt


The uncovered no-bid contract is in addition to the $28.08 million ($1 million per net acre) to be paid to JRM-ERTC.

JRM-ERTC should not be allowed to "double dip" on the sale of the ERTC property.

"'If the hospital goes (to the park), there's going to be a huge demand for hospital-related business space nearby,' Morera said. 'It would be a coup for the developer (JRMC) to sell the land for a profit and make a profit developing medical offices on the site. It's pretty savvy.'"
See the full report in the NC Times at:
http://www.nctimes.com/articles/2005/09/07/
news/inland/21_56_079_6_05.txt


Michael H. Covert and his operations continue to make bone-headed mistakes. A novice administrator could have easily understood that granting to JRM-ERTC the right to demand the no-bid contract placed in jeopardy PPH's ability to provide for the healthcare needs of Escondido.

The taxpayers, who are paying for the hospital expansion, do not deserve to be subjected to a "savvy" developer's coup.

Michael H. Covert should think about resigning!

James R. McCann and JRM-ERTC should renounce the right to subject the taxpayers to a "savvy" developer's coup!

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