GOP Backer Snubs Party Fund-Raiser : ‘Corporate Socialists’ Remark, Road Bill’s Death Hit by Argyros

An influential Costa Mesa developer and Republican contributor, offended by a reference to Orange County businessmen as “corporate socialists,” this week pointedly refused to attend a fund-raiser for Assembly Minority Leader Pat Nolan (R-Glendale) at the Irvine Hilton.

In turning down the invitation, developer George Argyros charged that the Assembly Republican Caucus had failed to support vital transportation legislation that could have helped ease the county’s severe traffic problems.

The $250-per-person cocktail reception Monday raised about $35,000 for Nolan’s leadership of Project 1990, a statewide effort by Assembly Republicans to take over the majority from Democrats before the next reapportionment.

Gann Limit Quote

Argyros sent a letter to fellow members of the Lincoln Club, an influential Republican support group, outlining his reasons for “regretfully” refusing to be a co-host for the event. Argyros cited a story in the March, 1987, edition of California Journal in which Nolan, in response to a question about whether the Gann limit on spending should be lifted, said:

“Yes, there are some elements in the business community being heard from, including those corporate socialists in Orange County who want to have on-and-off ramps added to freeways for their convenience but want taxpayers from all over the state to pay for them.”

“Obviously, I take strong exception to that comment,” Argyros said in the letter. “It is my contention that such inaccurate and distorted comments are confrontational and not constructive to establishing dialogue and settling differences.”

Bruce Nestande, a former Republican assemblyman who is vice president of Argyros’ Arnel Development Co. in Costa Mesa, said he did not know if other developers followed Argyros’ suit in not attending the fund-raiser. He said the letter, which was addressed to Assemblyman John R. Lewis (R-Orange) with copies to Lincoln Club leaders and others, was timed so that it would not interfere with attendance but would simply indicate to Lewis and Nolan: “How can you call us these names and at the same time come and ask us for money?”

Legitech, a private service that tracks bills and contributions, reported that Argyros had contributed $64,825 to various candidates since July, 1985.

Besides the disparaging quote, Argyros and other Orange County developers, as well as many in the business community, were infuriated when the Assembly Republican leadership allowed a bill by Sen. Marian Bergeson (R-Newport Beach) to die in the closing days of the legislative session in September.

The bill would have allowed the California Department of Transportation to contract with private firms for design and engineering work, thus averting project delays caused by staff shortages at Caltrans. It would have freed up to $338 million in highway construction funds statewide, with a portion designated for Orange County.

Assembly Republicans refused to support the bill because of a provision inserted by Assembly Speaker Willie Brown (D-San Francisco) that would have imposed affirmative-action guidelines on highway-construction contracts. Democrats had opposed private contracting, in any case. By inserting the provision, Brown forced the hands of Republicans who wanted the bill but opposed, on principle, the affirmative-action guidelines.

Several members of the Lincoln Club strongly lodged their anger with the Assembly Republicans, especially the all-Republican Orange County delegation, over the defeat of the bill. They reportedly are fearful that people will express their frustration with traffic by voting for strict growth-control measures.

“It was a foolish place to draw the line with Willie Brown,” Nestande said.

Anne Richards, Nolan’s press secretary, accused Argyros of “dredging up old stuff.”

“Pat is in the cooperation stage. He is moving forward and trying to cooperate and de-escalate and meet with people,” she said. “My impression is that Mr. Argyros is one of kind of a small group of malcontents that are being stirred up by Democrats.”

Nolan could not be reached for comment.

John Cronin, also a member of the Lincoln Club, cautioned both Argyros and Nolan to cool their comments.

“I don’t think it serves any real purpose to air dirty laundry in public like that, on either side,” Cronin said. “This thing has been festering. It is time for people to sit down and talk.”