The Santa Monica City Council has given former City Manager John H. Alschuler Jr. a one-year extension on a $220,000 loan the city gave him to buy a condominium. The loan to Alschuler, who resigned last year, would have been due in February, 1986.
Some council members at Tuesday’s meeting said they were concerned about the extension. William H. Jennings said the loan was offered to Alschuler in 1982 to make it easier for him to come to Santa Monica to work, and the city should receive a commercial return on the investment now, “rather than give a benefit to somebody who is no longer in the city’s employ.”
David G. Epstein said “it seems to me it should be a market-rate” loan.
But James P. Conn said “it is not worth the staff time it would take to set it up in a different way.”
The loan, given to Alschuler at a below-market rate, is based on a complex formula determined by the average interest rate of city investments.
The council voted 4 to 1 to allow the extension, with Epstein dissenting. Herb Katz was absent. The council did accept staff recommendations to revise the rate slightly to reflect changes in city investments.