HBCSD Corruption
Lie #9
The Misinformation:
(1) HISTORY OF THE SALE OF PIER AVENUE SCHOOL TO THE CITY OF HERMOSA BEACH by HBCSD Superintendent Pat Escalante (2012-2020) - dated November 8, 2013, posted to HBCSD.ORG
INCORRECT INFORMATION PROVIDED BY SUPERINTENDENT ESCALANTE:
“In June 1978, a conversation was initiated by the District
“Land Use Committee” to discuss the property options.”
CORRECT INFORMATION:
1. The Community Center was SOLD to the City of Hermosa Beach on February 28, 1978.
2. Therefore, a conversation was NOT initiated by the “District” Land Use Committee in June 1978. The conversation between the school district and the city to use/buy Pier Avenue School started in October 1975.
3. In addition, the Land Use Committee was NOT a “DISTRICT” Land Use Committee, it was a joint District and City body that was tasked to help the process of disposing of district surplus properties. The Land Use Committee was described in the December 15, 1975 school district meeting minutes: “The board was informed of certain issues in the escrow
instructions for the property which the board plans to sell to the city. These issues will be discussed at the next City-District Land Use Committee meeting.”
4. HBCSD offered Pier Avenue School to the City of Hermosa Beach on June 13, 1977 through the Resolution of Intention to Sell and Prescribing the terms there of, Exhibit G in the Purchase and Sales Agreement for Pier Avenue School. A description of Pier Avenue School property and a Memorandum of Understanding were sent with the School
District’s resolution to the City on June 13, 1977. The terms of the Memorandum of Understanding apparently had been recommended by the City-District Land Use Committee.
5. City Council members accepted and approved the school district’s MOU the very next day at their City Council meeting on June 14, 1977.
THIS IS A CORRECT STATEMENT:
“Out of these discussions came an agreement between the
District and the City to purchase Pier Avenue School for
$650,000.00. Because the City purchased the property for under
fair market value, a lease agreement was included as an integral
part of the sale transaction. The lease provides for limited
usage by the district of certain portions of the Pier Avenue
School.”
NOTE: HBCSD Superintendent Pat Escalante states that "Because the City purchased the property for under fair market value, a lease agreement was included as an INTEGRAL part of the sale transaction." This is a true statement. However both HBCSD attorney Terry Tao and Hermosa Beach City Attorney Michael Jenkins had denied this fact in their statements to the public. Please see information provided in Lie #1 and Lie #2 in this website.
(2) HISTORY OF THE SALE OF PIER AVENUE SCHOOL TO THE CITY OF HERMOSA BEACH by HBCSD Superintendent Pat Escalante - dated November 8, 2013, posted to HBCSD.ORG - continued:
INCORRECT INFORMATION PROVIDED BY SUPERINTENDENT ESCALANTE:
“Sale of Pier Avenue School: Article 4 of the MOU (Escrow Exhibit “B”)”
CORRECT INFORMATION:
1. The Memorandum Of Understanding (MOU) describes in detail the elements of HBCSD's offer to the City of Hermosa Beach for the sale of Pier Avenue School.
2. The MOU is labeled "Exhibit B" to the HBCSD Resolution of Intention to Sell and Prescribing the Terms Thereof. "Exhibit A" was a detail description of the property comprising Pier Avenue School that the district was offering to sell to the City of Hermosa Beach.
3. The MOU contains four articles: Article 1 specifies the district's intention to sell the Pier Avenue School as further described in Exhibit A included with the offer; Article 2 specifies the proposed purchase price offered by HBCSD for Pier Avenue School; Article 3 specifies the escrow instructions to be carried out by the City of Hermosa Beach pursuant to purchasing Pier Avenue School; Article 4 describes the district's requirements for future lease provisions of classrooms, office and storage space at the Pier Avenue Community Center when district enrollment exceeds 1,266 students.
4. Article 4 of the MOU is NOT the "Escrow Exhibit “B”" as described by HBCSD Superintendent Pat Escalante above.
5. Article 3 of the MOU are the Escrow instructions. NOT Article 4.
6. Article 4 of the MOU is titled FURTHER AGREEMENTS PURSUANT TO THE MEMORANDUM OF UNDERSTANDING and describe the district's lease requirements when HBCSD enrollment exceeds 1,266 students as a condition of the sale.
NOTE: Why did HBCSD Superintendent Pat Escalante refer to the MOU as “Escrow Exhibit “B”” in this write-up posted to the district’s website? A more accurate description would be “Further Agreements (classroom lease) Exhibit B”.
NOTE: The Further Agreements (for district classroom use) contained in Article 4 were the most important and impactful element of the MOU. Article 4 specified district use of classrooms, office space and storage space when HBCSD enrollment exceeds 1,266 students. Article 3 specified the escrow instructions. Was Pat Escalante trying to downplay the MOU provisions for district use of classrooms by naming it the “Escrow Exhibit “B””?
(3) HISTORY OF THE SALE OF PIER AVENUE SCHOOL TO THE CITY OF HERMOSA BEACH by HBCSD Superintendent Pat Escalante - dated November 8, 2013, posted to HBCSD.ORG - continued:
CONFUSING INFORMATION PROVIDED BY SUPERINTENDENT ESCALANTE:
“Article 4, Section 4.03, of the MOU provides that for a period
of 10 years the District shall have first priority to use Pier Avenue
School, during the school year and summer school, rent free subject
to conditions (development of a “notice procedure”, classrooms if
enrollment exceeds 1,266. District use of office and storage space,
District will pay the city for maintenance, utilities, and other normal
costs). The District did not utilize this lease option because
enrollment was declining during this time.”
“The MOU states that at the close of the 10-year period (1988)
the district shall have the continued right to use the school for the
purposes above at a “reasonable rent” in accordance with what
comparable facilities are used such as classrooms, office space,
storage, showers and lockers*. This option has not been utilized by
the District.”
CORRECT INFORMATION:
1. *District use of showers and lockers at the Community Center is rent free and defined in Exhibit K, NOT in the MOU.
2. Exhibit K, aka the Recreation Agreement and Lease Agreement for Future Use of Pier Avenue School, is a 50-year lease renewable in three-year increments. If not renewed, Exhibit K would expire in 15 years (2028).
NOTE: Superintendent Pat Escalante sent a letter renewing the leasing agreement specified in Exhibit K to the City of Hermosa Beach in 2014.
3. District use of classrooms, office and storage space is defined in the MOU. The district's use of classrooms, office and storage space was to be free for the first 10 years, afterwards the city could charge the district “reasonable rent” for use of classrooms, office and storage space. There is no expiration to Article 4, district use of classrooms, office and storage space defined in the MOU, it is based solely on enrollment above 1,266 students.
(4) HISTORY OF THE SALE OF PIER AVENUE SCHOOL TO THE CITY OF HERMOSA BEACH by HBCSD Superintendent Pat Escalante - dated November 8, 2013, posted to HBCSD.ORG - continued:
MISLEADING INFORMATION PROVIDED BY SUPERINTENDENT ESCALANTE:
“In essence, the City owns Pier Avenue School (Community
Center), the District has a 15 year lease agreement.”
CORRECT INFORMATION:
1. The 15-year lease agreement ONLY applies to Exhibit K (aka the Recreation Agreement) not to the MOU which is supposed to be the subject of this write-up.
NOTE: The heading on this paragraph, (Sale of Pier Avenue School: Article 4 of the MOU (Escrow Exhibit “B”)” ), implies that this write-up by Pat Escalante is supposed to describe the provisions of Article 4 of the MOU which has NO expiration.
2. Exhibit K is a totally different portion of the final Agreement which covers district use of the auditorium, gymnasium, changing rooms and tennis court and has a 50-year renewable term. The MOU, Article 4 has NO expiration. The provisions for district use of classrooms, office space and storage space is dependent solely on district enrollment above 1,266 students.
NOTE: Superintendent Escalante (purposely?) confuses the provisions of Exhibit K with the provisions of Article 4 of the MOU even though it is obvious that these were two distinct exhibits and lease agreements with separate provisions.
NOTE: Did Pat Escalante mix up the two lease agreements in this public explanation as a way to help School Board members achieve their goal of building a brand-new campus at North School? Was Pat Escalante trying to discourage the idea of using the Community Center for students to relieve over crowding by claiming that there is only 15 years left on the district's lease agreement for Pier Avenue School?
NOTE: It is believed that school board members were holding out for a brand-new campus at North School as a quid pro quo with the cabal for NOT exercising the district's leasing provisions at the Community Center. Is that why Superintendent Escalante gave false and confusing information regarding district leasing provisions at the Community Center to the public?
NOTE: Were certain city council members and school board members (past and present) involved in a cabal with the goal of keeping the truth about the district's leasing rights at Pier Avenue Community Center from taxpayers? Were certain School Board members and City Council members willing to throw students and staff at HBCSD under the bus to achieve their short-sighted, unnecessary and expensive goal to keep the Community Center solely for city use?
(5) HISTORY OF THE SALE OF PIER AVENUE SCHOOL TO THE CITY OF HERMOSA BEACH by HBCSD Superintendent Pat Escalante - dated November 8, 2013, posted to HBCSD.ORG - continued
MISLEADING STATEMENTS MADE BY SUPERINTENDENT ESCALANTE:
“Points of Consideration:”
“Will the term of the lease agreement address the overcrowding
issue to the District’s satisfaction over the long term?”
YES, IT WOULD HAVE.
1. The need for additional classrooms at HBCSD was a TEMPORARY issue as was evidenced by ACTUAL HBCSD enrollment. The fact is, HBCSD hired enrollment consultants who inflated actual enrollment numbers (or they were given inflated enrollment counts by HBCSD) and seemingly did not take into account evidence of pending decreases in K-12 enrollment as evidenced by the California Department of Finance demographics unit. After the district won their $59M bond vote in June 2016, HBCSD enrollment consultants changed their projection of future large increases in enrollment to one of a large decrease in students. However, even with the updated information, HBCSD School Board members did not change their plans to demolish and rebuild North School for $29M.
2. Use of the Community Center was dependent on district enrollment over 1,266 students. Enrollment surpassed 1,266 students in 2010. As soon as North School was entirely re-built for 510 students in 2021, enrollment had dropped by approximately 270 students, below the 1,266-enrollment threshold triggering district use of classrooms at the Community Center.
3. If the district had pressed their lease agreement with the City and the City had honored their agreement with the district, there was NO reason why the Community Center could not have been used from 2010 until 2020 to temporarily relieve district overcrowding. Using the Community Center classrooms would have IMMEDIATELY solved the temporary overcrowding problem at HBCSD, save taxpayers millions and save the iconic 1934 and 1939 buildings at North School AND created less landfill pollution.
(6) HISTORY OF THE SALE OF PIER AVENUE SCHOOL TO THE CITY OF HERMOSA BEACH by HBCSD Superintendent Pat Escalante - dated November 8, 2013, posted to HBCSD.ORG - continued
“How long would it take to make the appropriate repairs and
upgrades to make the building habitable for students? (need to
modernize and upgrade to current state standards)”
Please see:
Lie #4: Claiming that the Community Center does not meet CDE Title 5 Regulations.
Lie #6: Misleading the public as to the condition and safety of the Community Center (or the grandfathered-in North School) for students.
Lie #7: Claiming that the Community Center and North School are not ADA (Americans with Disability Act) accessible.
Lie #8: Claiming that renovating historical schools such as Pier Avenue School or North School are very expensive and cost prohibitive.
Lie #10: Unverified statements. There is no proof to verify these statements made by Superintendent Escalante and School Board members Lance Widman and Greg Breen.
(7) HISTORY OF THE SALE OF PIER AVENUE SCHOOL TO THE CITY OF HERMOSA BEACH by HBCSD Superintendent Pat Escalante - dated November 8, 2013, posted to HBCSD.ORG - continued
“Is it better to spend money on a facility/property that you
own or better to spend money on a property with 15 years remaining
on the lease?”
MISLEADING INFORMATION:
Again, Superintendent Escalante confuses the provisions of Exhibit K for district use of the gymnasium, changing rooms, tennis courts and auditorium which has a 50-year renewable lease with the MOU, Article 4 which specifies district use of classrooms, office and storage space. The leasing provisions contained in the MOU are solely dependent on district enrollment above 1,266 students, there is NO EXPIRATION date with the district’s priority usage of classrooms, office and storage space at the Community Center.
NOTE: Superintendent Pat Escalante sent a letter renewing the leasing agreement specified in Exhibit K to the City of Hermosa Beach in 2014.
(8) Terry Tao, HBCSD Attorney (2002-): May 31, 2016 presentation to the Joint meeting of the HB City Council members and HBCSD School Board members. Time Stamp: 02:03:05 Slide: Introduction
“So the Pier Avenue School was sold, and it was, um, there
was a lease that was addressing the use of Pier Avenue for school
purposes. Um, that lease was, on, um, a three-year time period and
it went, um, over for a period of time until the school district
really stopped using, ah, Pier Avenue School.”
NOTE: This statement from HBCSD Attorney Terry Tao is purposely confusing the provisions for classrooms in the MOU (Article 4) with the provisions for the gymnasium, etc. in Exhibit K. The last sentence in this quote is particularly misleading in that HBCSD has never stopped using Pier Avenue School auditorium for events. It does not matter if HBCSD stopped using Pier Avenue School temporarily since their lease agreement for classrooms is predicated on enrollment above 1,266 students.
(9) Greg Breen former HBCSD School Board member (2002-2009): Pier into the Past by Greg Breen, Letters to the Editor 07/30/15, Easy Reader News.
“Contrary to persistent local myth, the school district does
not have the right to continued use of the facility, having reserved
only the right to use the tennis courts and gym for two hours per day
and the auditorium for 10 days a year, with even that limited use
subject to a series of renewable three-year leases that expired 30
years ago.”
INCORRECT STATEMENT:
Greg Breen is only referring to Exhibit K, Lease Agreement for Future Use of Pier Avenue School (aka the Recreation Agreement) for district use of the gymnasium, changing rooms, tennis courts and auditorium at the Community Center. He does not disclose the leasing provisions contained in Article 4 of the MOU that has NO EXPIRATION date. This is a shameless omission by former School Board member Greg Breen in his letter to the Editor (and public). Please also see Lie #1 and Lie #2 in this website.
In addition, the provisions for district use of the gymnasium, changing rooms, etc. did NOT expire 30 years ago. They were automatically renewed by the school district and the city for 50-years (until 2028) with possibility for renewing in three-year increments.
NOTE: Superintendent Pat Escalante sent a letter renewing the leasing agreement specified in Exhibit K to the City of Hermosa Beach in 2014.