Zoo relocation project approved, but ability of Sacramento Zoological Society to raise $50 million put into doubt
Even though the Elk Grove City Council approved the Sacramento Zoo relocation project last night, it was only done after the zoo's operator, the Sacramento Zoological Society's ability to raise money for the project was put into doubt.
After hearing over four hours of staff presentations and public comment, the Elk Grove City Council voted unanimously to approve administrative steps for the massive $300 million project. Those approvals were for the environmental report, establishing a special planning area, modifying the trail plan, and changes to the city's facility naming policy for zoo buildings.
After discussing the first four administrative approvals, the city council took up the fifth item, the financing terms, with the SZS. Councilmember Kevin Spease laid out four demands, most notably that the city have cash in hand from the SZS before any onsite construction starts on the zoo.
Most significantly, Spease pressed for a firm commitment from the SZS. The SZS has committed to raising $50 million toward the construction cost but has been vague about the cash it has on hand, and when it would be turned over to the city for construction costs.
"As written, I cannot support the proposed financing plan. This is an extremely large complex project to be funded on the back of Elk Grove taxpayers," Spease said. "It creates liability and those liabilities are not mitigated adequately in the proposed plan. This project carries too much risk for the taxpayer and may dramatically limit our capability to respond to future alternative projects."
As part of the financing, the city will issue $114 million in Elk Grove taxpayer obligated bonds, and will use $93 million from the city's various accounts. The SZS will pay $50 million toward construction.
Recognizing the work of previous city councils, Spease said the city is on a great trajectory. However, the project could negatively affect the ability to address other pressing issues afflicting municipalities nationally. Among the issues he included were public safety, homelessness, mental health, youth violence, crime, and underemployment.
"Unlike so many other jurisdictions, we could truly be transformative," he said. "It's my opinion that future generations will judge us harshly for this missed opportunity."
Spease added, "The $50 million for the SZS has to be in our account before we turn shovels."
Along with saying the city had to have the SZS money in hand, Spease also recommended the formation of a citizen's bond oversight committee. Councilmember Rod Brewer and SZZ representatives angrily responded.
First to take aim at Spease was Councilmember Rob Brewer, who said he felt he had been sideswiped by the proposal first made in a public meeting and was "pissed" about Spease's suggestions. Brewer demanded that he should have been told about Spease's intentions, which violates the Ralph M. Brown public meeting Act.
"This is the first I heard of it tonight. If I'd known about it couple of weeks ago, or a week ago, or on Saturday I could have digested it, but this is the first I heard of it," Brewer said.
Brewer went on to say he was "pissed" because Spease "dropped it on them right now, today. This is the first I heard of it."
Recognizing Brewer violated the Brown Act, Singh-Allen spoke over her protege, saying, "We have Brown Act issues that prevent us from having that conversation."
At the same time, Spease also attempted to say before being interrupted that he was not allowed to discuss such matters.
Also targeting Spease were SZS executive director Jason Jacobs and board president Elizabeth Stallard. Both took exception to Spease's request that the funds donated to the SZS be secured and given to Elk Grove before any construction on the 68-acre zoo parcel begins.
Jacob and Stallard attacked Spease when they reappeared at the speakers' podium. Jacobs said Spease's request is casting doubt on donors over the project's viability.
"I am going to be honest with you and tell you people who are watching tonight, we have to give this community confidence that this is going to happen, right?" Jacobs said.
Jacobs said they received promises of $15 million before the project was approved.
Spease responded, "You are not in the $50 million point yet. My point is you got four years to get there, and I am not interested in putting our taxpayers at risk."
Stallard said the SZS requested a meeting with Spease, which she said he declined.
"We would have loved to talk to you about these issues, but you indicated you didn't want to talk about any of these things," Stallard said.
Spease immediately shot back, "I did not indicate that I didn't want to talk to you about anything; I said I did not need an update on the project, mam. Let's be very clear about what you asked."
He added, "I just want the record clear, mam; I did not say I did not want to talk to you. Let's be clear on that."
Earlier in the meeting during the staff presentation Spease also discussed the SZS promise to raise $50 million. Noting the SZS claimed to raise $15 million, he asked about the composition of the donations."Is it cash in hand, is it large donor, it is small donors? Can you help me understand what that looks like, Spease asked.
Jacobs admitted of the supposed $15 million, they only have $2.5 cash in hand. Responding to Spease, Jacobs was clearly irritated."There are a variety of people who have donated, we have a group of Brownies who has donated $500, we had a nice anonymous couple give us a million dollars," he said.Jacobs would not commit to when the rest of the cash would be collected.
In the end, by an informal 4 -1 vote with Spease dissenting, the city council refused to adopt his requests.
Lost Opportunity
During public comment, over 40 people signed up to speak. All but four were in favor of the project.
One of the dissenters was Elk Grove resident Lynn Wheat, who didn't criticize the zoo per se but asked about opportunity costs. Wheat noted the city had the capacity to raise about $250 million that could be used to establish the city as a cultural center.
Wheat concluded by saying "A golden opportunity missed."
