Public Figures, Private Interests

Two prominent officials in Huntington Beach received favorable treatment that assured them of homes in an exclusive development. Although their cases are different, both illustrate the need for public figures to recognize that gifts may come with strings attached or at least can be perceived that way.

Mayor Dave Garofalo got the best tract in the Holly Seacliff development and sold the house a day after he received it for $60,000 more than he paid. Garofalo voted 56 times on approvals needed for the development, 26 of the votes coming after he said he called the developer to say he wanted to buy a home, records show. Garofalo says he never was told he was at the top of the home-buying list and says because the house included upgrades, he made no profit. But the developer said upgrades in that subdivision would have been included in the initial price. An investigation is now being conducted by the office of Dist. Atty. Tony Rackauckas.

The superintendent of the Huntington Beach City School District, Duane Dishno, also went to the head of the list for a home in Holly Seacliff, which was developed by PLC Land Co., according to records shown to prospective purchasers. He got on the list after nearly two years of negotiations with PLC that resulted in the developer paying a higher amount than originally planned for an elementary school in the area.

Dishno said he thought he got on the waiting list for a home because PLC liked him, which he said was “sort of flattering.”

Surely public officials ought to know that those who give them perks or benefits often are doing so because they expect something in return or anticipate favorable treatment. To an outsider it could appear he got on the list either because he did not push hard enough in negotiations with PLC on the school district’s behalf, or because PLC felt it might need his help in the future.

To think a developer simply is being nice out of personal admiration is naive. Shirley Grindle, a tireless campaigner for ethics in government and the author of Orange County’s campaign contribution and gift-ban laws, aptly noted that Dishno received a favor not available to the general public. A gift by any name is a gift, and public officials must be on guard to remain at arm’s length from private interests who may want something from those who serve in public office.