Walmart PAC donated to vote-flippers’ favored charities

Walmart PAC donated to vote-flippers’ favored charities
February 4, 2011
by Dave Maass
City Beat

Walmart’s political action committee, San Diego Consumers for Choice, donated to charities supported by San Diego City Council members Todd Gloria and Tony Young, who on Tuesday changed their vote and repealed an ordinance opposed by the mega-corporation.

According to campaign-finance statements filed on Jan. 31, the PAC donated $7,500 to the Jackie Robinson YMCA, where Young participated in a Toys for Tots drive and was a special guest at the annual “Christmas with Character” party on Dec. 18. The Alpha Project, an organization for which Gloria regularly fundraises, picked up $10,000 from the PAC. Gloria volunteered at the city’s winter homeless shelter, which is run by the Alpha Project, on Dec. 15.

The PAC also donated $10,000 to San Diego Earthworks, an environmental organization; Gloria will be hosting Earthworks’ annual awards ceremony in May.

Initially Young and Gloria voted to require that any retailer wishing to build a store 90,000 square feet or larger in San Diego first study the potential economic and environmental impact on the surrounding community. After Walmart produced enough signatures to force an election on the ordinance, Young and Gloria voted with five other councilmembers on Tuesday to repeal it, citing the cost—roughly $2.5 million—of holding the election.

Young and Gloria’s offices say neither had knowledge of Walmart’s contribution. Walmart did not disclose on its paperwork when the donations were made, but the reports indicate most were made between Oct. 1 and Dec. 31. The PAC’s treasurer has not yet returned calls.

The PAC also made a $200 civic donation to the Barrio Logan College Institute, where newly elected council member David Alvarez has worked as an after-school teacher and mentor. The lone dissenting vote on the repeal, Marti Emerald, has also been involved in fundraising for the Alpha Project and served as grand marshall of Earthworks’ Earth Day parade in 2007.

To be clear, we are not alleging that Young, Gloria or Alvarez were influenced by these donations—knowing the city council members and their reputations, we doubt they were. However, we cannot help but note that the donations were made with campaign funds, while Walmart has other vehicles for philanthropy. The contributions may have been an attempt by Walmart to improve its public profile in the community or to access or influence the city council members directly or through their supporters and causes. Of course, the PAC could have been giving purely out of the goodness of its heart, but the fact remains the donations went to these groups specifically rather than other worthy non-profit organizations.

All told, the PAC spent $1.2 million in 2010 using contributions exclusively from Walmart Stores, Inc. These expenditures included $25,000 passed to the Republican Party of San Diego County, and civic donations of $22,500 to the San Diego County Taxpayers’ Association, $20,000 to the San Diego Regional Chamber of Commerce and $1,500 to the San Diego North Chamber of Commerce—all of which are pro-business and have historically supported Walmart...

Would Lorie Zapf bring "strategic fraud" to City Council?

Would Lorie Zapf bring "strategic fraud" to City Council?
by Pat Flannery
Blog of San Diego
May 24, 2010

Lorie Zapf, a candidate for City Council District 6, is attempting to turn a bust into a boon. Last week Dave Maass of CityBeat broke a story busting her for being in default on her family home in Clairemont. Responding to CityBeat Ms. Zapf tried to paint herself as the champion of all families who are attempting to negotiate a modification of their mortgage with their lender.

Maass asked me for my (real estate) opinion on the veracity of Zapf's claim, that "strategic defaults" are now commonplace. I told him it was "B.S." Lenders do not modify loans for borrowers who have the means to make their payments. Modification is for families who have genuine hardship, not slick real estate professionals like Zapf's husband.

Before responding to CityBeat I pulled the relevant Deed of Trust and the Notice of Default from the County Recorder. The loan on which the Zapfs are in default is an interest-only Home Equity Line of Credit (HELOC). A quick look confirmed that Zapf's "explanation" to CityBeat was indeed B.S. HELOC rates are already the lowest rates available.

Reporter Maass was now caught between two opinions on "strategic defaults". Mark Goldman, a real estate lecturer at SDSU, was telling him "In order to just have the bank consider your request, they pretty much force you into going into default. There’s a lot of people in that situation.” A classic example of "Those who know, do. Those who profess to know, teach". But the journo handbook requires that reporters call know-all professors.

Then CityBeat asked me to research another Zapf Notice of Default, this time in Las Vegas. Was this too a "strategic default"? So I dug out all the Zapf documents on their property at 2446 Craigie Castle St., Henderson, NV. It is a 4 bedroom, 2 bathroom single-family house built in 2004. The Zapfs bought it from the builder, Dell Web of Arizona, on September 10, 2004 for $511,875 as a second home.

It was a "second home" because they used "second home" financing. They got a $417,950 first loan and a $52,277 second, both from Countrywide. Wife Lorie would have to be intimately involved. A husband can't get "second home" financing without a wife's full cooperation. Their combined 1st and 2nd loans, $470,277, was 92% financing. That kind of loan-to-value ratio is not available for investment properties. If Eric rented out this property as an "investment", he defrauded his lender and Lorie was equally responsible. Yet that is exactly what Lorie told Channel 10 they did. She said it was an investment property, owned by her husband...