BREA : Council Stops Talks With Developer

The City Council this week abruptly shut down negotiations with McBride Development Co. after discovering that Councilman Ron Isles is a business partner of the man who owns the company.

In the early 1980s, Isles and Ron McBride financed at least two Brea projects--the Town and Country Apartments and the Berry Business Center. Isles said he has since separated his partnership assets from McBride’s, but the two are still general partners in the eyes of the law. Isles does not have a financial interest in McBride Development Co.

The council’s action followed almost a year of talks between McBride and the city concerning the development of a 7.5-acre site on Brea Boulevard. A formal agreement had not been made, but McBride was granted the exclusive right to develop the property in March, 1990. His company was chosen from 26 interested in developing the site.

“Mr. Isles . . . became aware of the possibility of a potential violation of the California Government Code sections which govern the business activities of elected officials relating to a situation involving himself and Mr. Don McBride,” Mayor Wayne D. Wedin said in a prepared statement after the vote by the Brea Redevelopment Agency.

“Agency counsel was concerned that a conflict may exist because Mr. Isles had participated in earlier discussions as well as in one agency vote to extend the negotiating time.”

According to state law, public officials cannot vote on matters in which they have a financial interest.

Isles, a councilman from 1980 to 1983 before being reelected in 1988, denied any wrongdoing.

“There is nothing to benefit me from this project,” said Isles, an attorney. “I would walk 10 miles to avoid an impropriety.”

Further, Isles said that his vote to extend negotiations with the company was a mistake. “It was on the consent calendar (of routine items for council approval), and I just missed it,” Isles said. McBride said the council had made a hasty decision.

“We don’t understand why they are pulling the rug out from us right now,” McBride said, adding that he was informed of the vote just two hours before it was taken. “We told everyone before Isles ran for council about our relationship.”

McBride said that 60% of the commercial site has been leased and that he has already spent $100,000 in developing the project.

Wedin said the members were torn over the decision, which was recommended by the city attorney, but felt that it was proper.

Negotiations with the second-lowest bidder for the project will begin immediately, Wedin said.