Mayor Withdraws Housing Support Over Lawsuits
The future of one of the largest affordable housing projects in Ventura has been placed in jeopardy because of recently discovered information about a pattern of lawsuits involving the project’s developer, Mayor Richard Francis said Friday.
Francis said the extensive litigation involving the head of KNM Development Inc., which had won tentative approval to build 147 affordable housing units in east Ventura, has convinced him to drop his support of the project.
Ernest T. Mansi, the head of KNM, and the companies he controls have been sued at least 10 times over the past six years for allegedly mishandling other development projects in Ventura and Santa Barbara counties, Francis said.
“My fear is that the KNM project will never be completed and we will end up with an eyesore,” Francis added.
Mansi could not be reached for comment at KNM offices in Oxnard and Camarillo Friday, but Francis said he met with the developer early in the day and was told by Mansi that there is no legitimate reason for the city to drop its support of the project.
“He said he had an explanation for everything,” Francis said.
On Thursday, Mansi submitted a letter to the city explaining his role in 11 lawsuits and generally denying any financial irresponsibility or negligence in past construction projects. In some cases, the letter states that Mansi was victimized by the actions of his partners. In other cases, the letter simply states that the cases were settled.
KNM had received tentative approval from the City Council on Oct. 15 to build the 147-unit project on the southeast corner of the intersection of Telegraph Road and Reata Avenue.
Nearly 1,000 applicants have signed up for the houses, which would cost about $146,800 for the three-bedroom units and $176,900 for the four-bedroom units, Community Development Director Everett Millais said.
The council withheld final approval of the project pending a redesign of the tract’s traffic circulation pattern. The required changes were deemed so minor that City Atty. Peter Bulens said the council was not required to hold a public hearing next Monday when the project is scheduled to be considered for final approval.
“I’m sure glad the project was sent back for redesign,” said Francis, who had moved without council support to approve the project without any changes. After Francis’ motion failed, the council voted 4 to 2 in favor of tentatively approving the project and sending it back to the planning staff for minor modifications.
Councilman John McWherter voted against the motion because he said it would bring too much development to the city. Francis voted against the motion because, although he supported the project, he did not favor the traffic modifications that were being proposed. Councilman Gary Tuttle abstained, citing a conflict of interest because he was distantly related to one of Mansi’s partners.
Francis said he decided to withdraw his support for the KNM development after receiving information from a neighbor Wednesday listing more than 30 lawsuits involving the head of KNM. Francis, who works as a private attorney in addition to serving as mayor, said he was able to trace at least 10 of those suits directly to Mansi.
After reviewing the list of lawsuits and speaking to some of the attorneys involved in those cases, he determined that allowing the KNM projects to go through would be too risky, Francis said.
While no evidence of wrongdoing was discovered, Francis said there were so many allegations against Mansi that he felt uncomfortable about granting the project final approval.
“What I see is a lot of smoke and you know the old adage,” Francis said. “For the city to be involved in a project of this magnitude, that requires a presumption of credibility and confidence that all but guarantees the deliverability of the project as planned.”
Francis said he is particularly concerned about Mansi’s role in two nursing home projects, one in Lompoc and another in Santa Paula, which were never built. Francis said he was also concerned about a condominium project in Oxnard for which Mansi had done the engineering studies. The mayor said that, months later, a roof caved in.
Councilwoman Cathy Bean, who was also informed of Mansi’s legal disputes and who earlier voted in favor of the project, said she too will now vote to withhold approval of the KNM project until all doubts are eliminated.
“This is something we didn’t know beforehand,” Bean said of the lawsuits. “We will need more information before we proceed any further.”
City officials said they do not check the legal backgrounds of developers seeking to build in the city. “We just make sure all the documents are correct and that the actions the City Council takes are correct,” Bulens said.
Millais added, “When we do our plan checks, it doesn’t really matter whether the developer is involved in a lawsuit or not, but in this case the developer appears to be involved in a lot of lawsuits, and that always invites suspicion.”
