FRESNO, California.- On Tuesday Councilman Garry Bredefeld stated local developer Terrance Frazier filed a $10 million dollar claim against the city just days before accepting a grant for $700,000 from the city.
“There is a lot of stench with this,” said Bredefeld. “I think there is a lot of incompetence and the only way to get rid of that stench is to shine a light on it and that is what I am attempting to do.”
Bredefeld called for the council to hold a special meeting after he said three-quarters of a million dollars was awarded to Frazier and his partner for a $20 million project near Fulton and Kern.
The project to house retail on the ground floor and around 50 housing units, 10 being for low-income residents.
Frazier is also the President of the Central Valley Community Sports Foundation (CVCSF), which runs Granite Park. Each year the park is given $150,000 from the city to help run softball, soccer, volleyball and staffing costs.
Last year, after CVCSF asked for an additional $150,000 the city initiated a partial audit. In that audit, it found many bookkeeping irregularities, financial statements that did not reflect expenses and even question the non-profits practices.
“The people who were audited should be really concerned about their records and why the audit results were what they were,” said Bredefeld. “The fact that we haven’t addressed it in 9 months, that’s the fault of the city.”
Bredefeld called city staff, including City Attorney Douglas Sloan incompetent. According to Bredefled, Sloan said Frazier, who is running the Granite park sports facility in Central Fresno, is in compliance with the current lease.
Over $700,000 has been given to the non-profit to date. Bredefeld said many of the programs promised are not in existence. A city’s internal audit found Frazier’s non-profit lacks adequate policy’s, procedures and internal controls.
“31 book errors out of a sample of 130 transactions,” said Bredefeld. “There were personal loans, missing documents, a lot of unaccounted money. A lot of important fiscal issues raised in the audit.”
The audit stated around $1.2 million in transactions are not supported with appropriate documentation.
The audit also discovered the non-profit allowed individuals to live on Granite Park grounds and later paid to house them in a nearby apartment, which may violate the non-profit status.
Frazier said the audit is a false, misleading and political hit. He has filed a lawsuit suing the city for $10 million
City of Fresno Spokesman Mark Standriff stands by the audit.
“We don’t usually comment on pending claims or litigation but we are making an exception in this instance because it’s 100% false and doesn’t have a truth in it,” said Standriff.
Bredefeld said it was the audit and the fact that Frazier did not deny he would come back for more money that resulted in him voting against the downtown project. He was the only council member to vote against the project.
However, after finding out about the lawsuit, Bredefeld said the council made a decision about taxpayer money without all the adequate information.
“I would blame the city attorney as well as the city administration for not letting us know because they were aware of it,” said Bredefeld. “So that is why I say, when I say Cityhall incompetence, because it is everywhere and certainly when it comes to these things we are talking about.”