Council Handled Janss Bonds Badly
After reading Miguel Bustillo’s article, “Janss Center Renovation Leaves Some Upset,” several questions come to mind.
The Thousand Oaks City Council helped finance the renovation of the Janss mall by issuing $35 million in bonds to generate cash for the project. Councilwoman Jaime Zukowski stated that there was no indication that Janss was in financial distress. Janss was on unstable economic grounds when the council approved the plan 4 to 1 after assurances from Janss that existing tenants would not be forced out after renovation. Facing bankruptcy, Janss “closed its doors last year--and financial backer Goldman Sachs took over the mall.” When Goldman Sachs took over, it began to pressure some tenants out with unacceptable lease provisions. The conflict between the local tenants and Goldman Sachs would never have occurred had the City Council done a diligent job of examining the Janss Corp. prior to subsidizing the bond.
Why didn’t the City Council have the true financial picture of the Janss Corp.? And is it fair to assume that this is how the council handles all of its affairs?
SCOTT SIEGEL
Westlake Village
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