Orange County Great Park CEO Mike Ellzey Unmasked

500 miles suddenly becomes a much shorter distance.

Perhaps not surprisingly, there are some surprising revelations about the guy who is 'proud' to turn a toxic EPA Superfund site into a park for little kids to play in.

(IRVINE, Calif.) - The CEO of the 'Great Park" Corp. is charged with transforming a dangerous toxic Southern California military base, Marine Corps Air Station El Toro, into a park for children and families. We suspected some time ago that Mike Ellzey may not be exactly who he says he is.

After all, who would have the conscience to head such a project?

New information about a plagued parking garage project in San Francisco involving millions in missing money, an underling serving out a prison sentence at San Quentin, and a trail of unanswered questions, including years of unpaid rent to the city of San Francisco, is Mike Ellzey's most recent professional legacy. 500 miles suddenly became a much shorter distance.

As outgoing Irvine City Council Member Christina Shea explained in a June 2010 interview with Salem-News.com, hundreds of millions of dollars once in place for the construction of the park no longer exist. While attempting to trace the missing funds, Shea says she has repeatedly been denied access to information. Shea says she had every right to see the numbers as a member of the Irvine City Council. Few would disagree.

What those missing hundreds of millions brought taxpayers, rather than a Great Park, is a mini-park with trees mounted in above-ground boxes, and a bright orange balloon that takes people into the air to see hundreds of acres of broken and destroyed buildings, and a once gallant flightline that now serves as a motorhome storage lot.

Shea said in June, "We only have $19 million left, so much has been spent on development, I honestly don't know what we are going to do."

Almost $240 million had existed to create the park. Beyond Ellzey, Irvine's pro-tem Mayor Larry Agran will eventually answer big questions about the missing money.

Now that officials in Bell, California have been fully exposed for financial malfeasance, perhaps it is time for the federal agents to direct their attention toward Irvine's Agran and Ellzey?

Did a rat leave a sinking ship? Greg Colley was fired in February of 2008 from his position as CFO after one of his bosses at the nonprofit, the Music Community Concourse Partnership (MCCP), discovered that he had taken millions of dollars over the course of several years (2006-2008)...At least that's all they could prove. He fled California, was caught then extradited from Salem OR. on August 1, 2008.......Then he was prosecuted and convicted by former SF District Attorney and recently elected State Att. General Kamala Harris, sentenced to over 5 years at San Quentin and ordered to pay back $3.9 million. The stolen money, now gone, has not been accurately accounted for. Colley worked with Mike Ellzey, who was the Executive Director of the same scandal-plagued non-profit. Scroll way down this link which has the officials minutes of an October 16, 2003 meeting chaired by then Mayor Willie Brown. http://sf-recpark.org/index.aspx?page=856 QUESTIONS: Why did the OCGP Board hire Ellzey, a man who left one scandal-plagued corrupt project in his rear view mirror only to come to another one? What happened to the $3.9 million? Did any of the OCGP Board members know details of Ellzey's history or bother to simply GOOGLE his former employer's name, browse media archives for San Fran? What kind of referral for Ellzey was the MCCP or its easily discovered black history? Did Ellzey reveal this fiasco in a behind-closed-doors interview? If OCGP Board members found out that Ellzey's friend Greg Colley was the CFO of the corporate Siamese twin to Mike Ellzy's employer at some point after hiring him, why did they keep him on? Ellzey's hiring as Deputy CEO at the Great Park was simultaneous with his resignation or termination in San Fransisco; it was also contemporaneous with the news that Colley was indicted.

Our primary questions about Ellzey's past center around his public claims over having, as a Marine, accomplished tasks and filled roles that seem almost impossible. Fellow Salem-News.com writer Roger Butow and I both caught his unmistakable unsavory manner at an Irvine City Council meeting several weeks ago.

Roger attempted to hand Ellzey our research about the dangers of El Toro, an EPA 'Superfund' site, and he completely rejected the documents, showing us that he had no interest in the hard work of a group of former El Toro Marines whose information was more than on target.

That was the moment that we knew something wasn't right with Ellzey in particular.

So the word went out through several Marine Corps related channels that Roger and myself and other members of our group which we refer to as 'TET' for Team El Toro, are associated with. We advised that the team was seeking additional information about Mike Ellzey, and what Roger Butow described as "Ellzey’s gloriously embellished, tear jerker, self-aggrandized USMC history and service record."

Specifically:

• No one who served with him in the USMC (either during basic training or at T. I.) stepped up, or could back up his tall tales about personally participating in numerous military funeral services as part of his duties, including attendance and involvement with the coffin of the last Marine killed in combat just before the Paris Peace Accords signed on January 27, 1973: Pfc. Mark J. Miller.
• Does Ellzey’s alleged trip to the Vietnam Memorial constitute patriotism? Does his claim that he was spit upon as a Marine have ANY basis in fact, can this common but sometimes made up scene be proven to have occurred? What are the real facts, not Ellzey’s claims but hard evidence (photos and docs) to corroborate his bio?
• The City of Irvine stated publicly in Feb. 2008 that, “Ellzey has a law degree from Lincoln University, School of Law, and a Bachelors degree in Political Science from San Jose State diversity. Ellzey is a veteran of the U.S. Marine Corps and served as Legal Chief, Marine Barracks, Naval Station, Treasure Island.” By our research, based on Ellzey's brief enlistment in the Marine Corps, the Marine who holds that 'Legal Chief' title at such an esteemed Marine facility, would have been significantly higher in rank.

For those who are wondering 'what the big deal is' about all of this, simply appreciate that Ellzey very clearly has used his illustrious 'Marine Corps past' to open doors and to justify his role as CEO of the Great Park. Surely, people probably thought to themselves, this man would do the right thing, after all, he was a Marine. It has worked until now.

In the meanwhile, the money for the park that came from the blood, sweat and tears of Orange County taxpayers, has been squandered.

Today we learned a great deal more about Ellzey's past, thanks to one of our contributors who has done a lot of ground work and general research for Salem-News.com stories, primarily related to our Civil Rights and Hate Crime investigation of Oregon's prisons. In this case our source switched gears from that beat and spent a great deal of time digging up the facts surrounding Ellzey's time heading a very controversial and less than successful parking garage project at one of the Bay Area's historic sites.

From our source:

HOGWASH, Mr. Ellzey! Either you need to go back to law school and study the difference between a private gift and Revenue bonds, or you were outright lying in your 2005 interview about the situation in San Francisco you walked from. In 2005 you told your ‘apologist’ blogger Anderson (who apparently can’t sort wheat from chaff) that the SOURCE of $55 million dollars funding of the parking garage project in San Francisco was a “GIFT.”

Half a decade later, Mr. Whiting at the Orange County Register should have paid attention to what you said to Anderson in that 2005 interview, because Mr. Whiting may find, “he who lies down with dogs gets up with fleas.”

In the Orange County Register (Oct. 12, 2010) article by Whiting he mentions how he just happened to come across an interview you did with a blogger (Anderson) from 2005.

Great Park CEO talks, no PR needed David Whiting - ocregister.com

Your 2005 Anderson interview is still online here: Interview with Mike Ellzey: Executive Director of the Concourse Authority - district5diary.blogspot.com (and here: salem-news.com pdf version)

Anderson asks you in the interview in 2005:

Questions: “How about the “privatizing” the park issue? It’s been charged that…well, who is in charge? The Concourse Authority or the Music Concourse Community Partnership and Warren Hellman?

(You, answer) Ellzey: Well, I think to use the word “privatization” to describe our projects is hogwash. I really do. Why would the community be upset about the city receiving a $55 million GIFT and where that money came from, so long as that money was a gift to the city and the city had absolutely zero risk associated with it? That’s the deal we have with these folks. On the front end, that’s $55 million.”

End excerpt.

Mr. Ellzey, must have known when Anderson interviewed you (with your high level of educational attainment, your time in government and even “finance” (per you) that it certainly was NOT a $55 million dollar GIFT to the people of San Francisco that was to build the garage.

Over $30 mil in Revenue bonds had to be sold to pay for the garage project as the donations had fallen short (remember the 2004 lawsuit?).

Sir you would have known that full well when you sat down with Anderson in 2005, so I must say ‘ditto’ about you the recent headline at salem-news.com: “Falsus in uno, falsus in omnibus.” False in one thing, false in everything.

Certainly, having gone to law school and such, you know that Revenue bonds are backed by TAXPAYERS and (HOPEFULLY) some long-term income produced (or a cost efficiency of long-term savings) from project financed by bonds. Oh yes, this garage will be gifted back to the city after the bonds/loans are paid (as it is owned by a semi-government setup. That’s construed as a gift by you??

Here’s “just the facts”: City and County of San Francisco Budget & Legislative Analyst - sfbos.org (and: salem-news.com pdf version)

Public trust is a very difficult thing to maintain when a person's actions are totally surrounded by allegations of wrongdoing. The base at El Toro has been closed for many years and at one point, there were plans to transform the toxic ground into a housing subdivision and, as the content of this article indicates, a 'Great Park' for the residents of Orange County. There were other promises. None have come to pass, and the awful orange balloon is a terrible spectacle that is suicidal in nature to any hope of positively showing the place.

History of Corruption in Orange County

All of this in Orange County, a massive government entity in California that actually had to file bankruptcy in 1994.

OC saw its former Sheriff-Coroner Mike Carona indicted by a federal grand jury along with his wife, and his alleged longtime mistress on corruption charges in 2007. He was convicted and sentenced to 66 months in prison which he has still not yet served.

Wikipedia explains how Carona received over $215,000 in pension checks in 2009, in spite of his felony conviction, as the county's retirement system faces a massive shortfall totaling $3.7 billion in unfunded liabilities. In fact, 'Carona the convict' is one of approximately 400 retired Orange County public servants who received more than $100,000 last year in benefits.

It seems the corruption is just rampant in this Republican stronghold of California, and one has to wonder if that was some kind of a draw card for Ellzey. Not the Republicanism, but the prominence of corruption. People in San Francisco do have a tendency to be less accepting of corruption and the press there tends to call it out more than those who write news behind the Orange Curtain. Interestingly, as our unnamed source reveals, the story that led to millions of missing dollars under Ellzey's watch, connects back to Salem, Oregon.

From our source:

Quote: On June 2, 1998, voters passed Proposition J, the Golden Gate Park Revitalization Act, to improve the Music Concourse area of Golden Gate Park and reduce the impact of vehicles on the park through construction of a privately funded, 800 vehicle garage and various transit improvements. This Act established the Golden Gate Park Concourse Authority to effectuate the garage project and related transportation initiatives. In November of 2003, the Board of Supervisors approved a 35-year ground lease between the City and the Music Concourse Community Partnership, a non-profit public benefit organization established in December of 2001 to finance, design, construct, and operate the Music Concourse Parking Garage under the oversight of the Golden Gate Park Concourse Authority. The parking garage was developed at the Music Concourse Community Partnership's sole cost and expense. Proposition J prohibited the expenditure of any public funds.

After an extensive public consultation process and a lawsuit in 2004, the parking garage was opened in October of 2005 at a total cost of $55 million, funded by revenue bonds issued by the Music Concourse Community Partnership in 2004 and by philanthropic donations.

There’s more regarding the revenue bonds being recently needing “re-financing”: Golden Gate Park Concourse Authority meeting November 18, 2010 - sfrecpark.org (and: salem-news.com pdf version)

Excerpt:
NOTICE OF SPECIAL
PUBLIC MEETING
November 18, 2010
12:30 P.M.
CITY HALL, ROOM 416
AGENDA

MUSIC CONCOURSE COMMUNITY PARTNERSHIP - REFINANCE Discussion and possible action to recommend that the Recreation and Park Commission and Board of Supervisors approve the Music Concourse Community Partnership's proposal to refinance the Series 2005 Bond Anticipatory Notes with Tax Exempt Bank Qualified Bonds from First Republic Bank in the amount of $30 million. (ACTION ITEM)

Interestingly, there’s a bit more to the Revenue Bond - Fiscal Fiasco story Golden Gate Concourse story (and embezzlement too): Deadbeat San Francisco Garage Asks Board to Endorse $30 Million In Federal Stimulus Loans Matt Smith blogs.sfweekly.com (and: salem-news.com pdf version)

Excerpt:

By Matt Smith, Mon., Dec. 6 2010: “The nonprofit that operates the parking garage serving the de Young Museum is three years behind on its $100,000 annual rent payments owed the city.

But that hasn't stopped the Music Concourse Community Partnership from requesting that the Board of Supervisors give its blessing to $30 million in loans backed by the federal American Recovery and Reinvestment Act stimulus funds”.

“In 2008, museum officials discovered that the garage's chief financial officer, Greg Colley, had embezzled $3.6 million. (Colley was fired in February 2008 and arrested in August 2008 in Salem, Ore.)

Read more here about the garage fiasco, Mr. Ellzey: Really feeling the economic downturn - Google web cache (and: salem-news.com pdf version)

The garage has struggled ever since, gradually paying overdue bills to some contractors and vendors, leaving for last money owed the city in land rent.”

“In March 2008, the San Francisco Chronicle cited former Board chair Richard Bingham as saying the embezzlement had not endangered the garage's operations He was also cited saying no taxpayer funds had been lost when Colley skimmed millions unnoticed by Bingham and the Partnership's one other director, Dede Wilsey.”

“Those statements -- that operations were not endangered and taxpayers hadn't been dunned -- will not become true in a strict sense until the bank obtains $30 million in bank financing made possible by a President Obama stimulus provision.”

“Notwithstanding, Kropf explains that the re-financing package, the subject of a bill to be considered Tuesday by the Board of Supervisors, is not directly linked to the 2008 embezzlement scandal.”

“According to documents accompanying the debt proposal, the garage also owes $1.5 million to Swinnerton Builders, and has $30.9 million in outstanding initial construction debt, much of it coming due next year. The garage has managed to make interest payments on that debt by taking out individual loans, while putting off vendors -- and its city government landlord.”

"The embezzlement is a black mark and an incredible story," Kropf said. "But he was found out, and has been serving time in San Quentin," she said. "But this refinancing is not specifically reacting to the fraud."

Rather, she explained, the garage has always intended to issue new bonds to cover its outstanding debt, and the stimulus program seemed like a great deal because of a relatively low 5.5 percent interest rate, and a 28-year term.

"It came up, and it was an opportunity we felt we could not skip," Kropf said.

At the time of the embezzlement criticisms were leveled at the Partnership's two board members, Wilsey and Bingham, for failure to spot the embezzlement scheme until an unpaid contractor inquired about missing money. Since then, the board has been expanded to seven members, Kropf said -- Wilsey and Bingham continuing to serve.

End excerpts.

Mr. Ellzey, it is you who is full of HOGWASH!!!

Team El Toro is a cohesive group of El Toro Marine veterans aligned under Salem-News.com; anyone familiar with our work in this area knows that Salem-News.com writer Robert O'Dowd has written many stories about El Toro's contaminated wells and many other aspects of the base. John Uldrich has been working closely with the team since the beginning and former Marine officer Dave Bedworth has been extremely helpful, especially with his articles about another Marine base with the same type of deadly contamination; Camp Lejeune in North Carolina.

Perhaps because he is a tried and true water quality activist who lives in the immediate vicinity of El Toro and its related pollution, Roger Butow has been our most forward voice in this fight and he certainly is our point man.

Appropriately, Roger shares his thoughts and closes this article with several relevant points.

Ellzey should resign to remove the cloud of suspicion that is now stalled over the heads of the OC Great Park Board, he has become at minimum a distraction for an entity that has already endured enough CEO nightmares. Ellzey's hiring for the Great Park CEO position was a direct result of his supposed and highly publicized, highly praised prior leadership and incredible success in San Francisco. It's unclear whether Ellzey approved of or sponsored the hiring of Greg Colley as CFO, but that doesn't eliminate the atmosphere of contamination. Then too if this happened on Ellzey's watch he definitely can't be trusted any longer.

Like the former base itself, Ellzey is toxic, there is a type of guilt by association in this revelation. So what didn't Ellzey know and when didn't he know it? What does he know now that he has firewalled or hidden from the public about the finances and actual soil and water contamination? How can Ellzey be trusted with the oversight of billions of public funds at the Great Park if he was any part of such a colossal scandal involving far less money, is this the fox guarding the henhouse?

That SF project is not a stellar resumé stuffer.

Ellzey MUST have been subpoenaed and deposed by then SF District Attorney, now Attorney General Kamala Harris after his appointment to the OCGP position. Did he disclose this in 2008 to his godfather, Larry Agran, or to the OCGP Board members who failed at their due diligence and kept him aboard without a thorough background check?

Did he cut a deal, snitch out Colley and cut his own deal to avoid prosecution?

It's obvious that this former MCAS El Toro is not only a metaphorical graveyard of Marines and civilians who drank and bathed in the carcinogenic-laden water, but is cursed, hexed, under some evil spell. Maybe it's the ghosts of those whose health was severely affected, reaching out from their hospital beds and the grave for justice, just like the movie POLTERGEIST.

___________________________

Tim King is a former U.S. Marine with twenty years of experience on the west coast as a television news producer, photojournalist, reporter and assignment editor. In addition to his role as a war correspondent, this Los Angeles native serves as Salem-News.com's Executive News Editor. Tim spent the winter of 2006/07 covering the war in Afghanistan, and he was in Iraq over the summer of 2008, reporting from the war while embedded with both the U.S. Army and the Marines.

Tim holds numerous awards for reporting, photography, writing and editing, including the Oregon AP Award for Spot News Photographer of the Year (2004), first place Electronic Media Award in Spot News, Las Vegas, (1998), Oregon AP Cooperation Award (1991); and several others including the 2005 Red Cross Good Neighborhood Award for reporting. Tim has several years of experience in network affiliate news TV stations, having worked as a reporter and photographer at NBC, ABC and FOX stations in Arizona, Nevada and Oregon. Serving the community in very real terms, Salem-News.com is the nation's only truly independent high traffic news Website. As News Editor, Tim among other things, is responsible for publishing the original content of 65 Salem-News.com writers. He reminds viewers that emails are easily missed and urges those trying to reach him, to please send a second email if the first goes unanswered. You can send Tim an email at this address: newsroom@salem-news.com

Launched in 2010, Odd Man Out is the creation of Roger von Bütow and his OMO columns are written exclusively for Salem-News-com. Born and raised in the LA Harbor area, son of a German immigrant father, he's been in Orange County for 45 years and is a 38-year resident of Laguna Beach, Ca. In 1998, he began his professional career in environmental review processes (CEQA, NEPA, MND, MND and EIR/EIS). He's a rare mix of cross-trained builder, writer and consultant as he brings his extensive construction experiences dating back to 1972 into his eco-endeavors. He has tremendous field and technical expertise in successful watershed restorations, plus wastewater, urban runoff, water quality monitoring/improvements and hydrologic mechanisms. He's built everything from commercial spas to award-winning private residences, and provided peer review and consultant analyses for single homes, subdivisions and upscale resorts.

View articles written by Roger Butow Read Roger's full biography on the Salem-News.com Staff Page

His resumé is extensive, try an online GOOGLE search of his personal journey and historical accomplishments. His consultation fees are reasonable and if you've got a major project that alarms you, that needs creative intervention, then he's your man. His credentials and "CV" can be provided upon request.

Contact him at his office: (949) 715.1912 or drop him an email: rogerbutow@cleanwaternow.com