Erik Sten Drops a Bombshell: He's Out.

In a three-hour interview with Willamette Week, published today, Portland City Commissioner Erik Sten reveals that he's resigning effective April 1st. (And no, this ain't no April Fool's joke.)

In an exclusive interview with WW , Sten said he will leave City Hall by April 1. He does not yet have another job.

“I’m proud of what I’ve done,” says Sten, who turned 40 in October. “With the mayor’s seat and Commissioner Adams’ seat open, my stepping down now gives voters a real opportunity to reshape City Hall.”

Sten's seat will be open in this May's primary election, leading to lots of potential jockeying:

Sten’s unexpected departure could ignite a free-for-all among previous and potential City Council candidates, including Nick Fish, Serena Cruz, Dave Lister and Metro Councilor Robert Liberty.

It will probably also lead to jockeying among those who have filed already for the May primary race to replace Commissioner Sam Adams, who is running for mayor.

All candidates have until the March 11 filing deadline to decide which seat to run for. (Sten’s seat will sit vacant from when he leaves until a replacement is elected, either in the May primary or, if no candidate achieves a majority then, in a subsequent special election.)

Regarding his legacy, Sten points to housing the homeless and public financing of campaigns:

I’m most proud of my work in affordable housing and homeless work. I think we’ve added somewhere between 10,000 and 12,000 affordable units in the last few years. We’ve housed between 1,200 and 1,500 chronically homeless people in the past 3 1/2 years. When I started, housing was an important but secondary issue, and now it’s fundamental to all city strategies. The home ownership rate in Portland is 56 percent; in San Francisco, it’s 20 percent. A big challenge going forward is going to be to keep the city affordable to as many people as possible. ...

I’m really, really proud of public financing for city elections, although it’s been a real battle. Certainly, some of the entrenched interests in town hate public financing. But it’s cheaper for citizens to fund their own elections than to have special interests fund them. Nobody really disputes that.

Read the rest of the extensive story at WW. Discuss.

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    Bad news. I hope this doesn't mean anything bad has happened to Erik Sten healthwise. The story gives no reason.

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    Maybe he just wants to kick back and start his own blog.

  • Bob Tiernan (unverified)
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    Good news. Anyone associated with the corporate welfare sweetheart deal regarding Civic Stadium should have been tossed out long ago.

    Bob Tiernan

  • Buckman Res (unverified)
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    ”Anyone associated with the corporate welfare sweetheart deal regarding Civic Stadium should have been tossed out long ago.”

    Not to mention the fiasco with the Water Bureau’s billing system which cost taxpayers untold millions. Erik’s idea of “taking responsibility” for the disaster was to fire the bureau head.

    There are many more “accomplishments” that could be listed here. His departure is long overdue.

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    What is it about Sten that makes moderates and righties unhinged? Jack Bog has gone around the bend on Sten. I get that he's left of center, but it doesn't explain the bizarre animus. And it is bizarre. The amount of zeal over the water bureau thing is so far out of proportion with the debacle. I sense a cultural or personality rather than political motivation. But I can't see what flips the switch.

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    Not that big of a bombshell per se. I had heard he was looking to move into the private sector for awhile. The timing is a bit of a surprise, but not an unforeseen move really.

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    Jeff,

    Let me try and answer your question about why Sten has driven me crazy starting with the Water Bureau. It wasn't just that we lost money there, it was Sten's approach to the problem and his response. He was young and inexperienced and in a position over his head at the time. However, he was offered good advice and assistance on how to work the problem which he ignored and made worse. Most people in management positions that did that would be fired whether in government or business.

    The other example that stood out to me was his response to the Tram when news of the overuns hit. He was pushing that we shut it down at a point where that would have cost the taxpayers much more than continuing ahead. His position was irresponsible although it had a certain popular appeal at the time. In both cases he seemed to show a lack of concern for wasting taxpayers money. He is certainly a bright guy and has some appealing qualities, but has shown, in my opinion, a lack of judgement and arrogance in some of his visible decisions that grate on me.

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    I would suggest to folks who (again) bringing up the Water Bureau thing... go read the interview. He talks about it at length.

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    Considering the acrimony in the battle Sten fought to get this seat last time around (not to mention that taxes funded part of his campaign), it's difficult to understand his leaving without comment.

  • steve (unverified)
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    "What is it about Sten that makes moderates and righties unhinged?"

    Maybe, besides some low income housing issues (not looking at the SoWa with all its subsidies and no low-income housing), he screws up everything he touches.

    He blew the PGE thing, he set public campaing financing that got gamed, free WiFi, water computer . . .

  • Bob Tiernan (unverified)
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    Buckman Res:

    Not to mention the fiasco with the Water Bureau’s billing system which cost taxpayers untold millions. Erik’s idea of “taking responsibility” for the disaster was to fire the bureau head.

    Bob T:

    Oh yes, for sure!

    I brought that up one morning while calling into a KBOO show (Alan Graf & Joanne Bowman), and Alan replied, "Well, he didn't do it on purpose"

    So yes, as someone has since written, he broke or messed up so many things he touched. That means he was the Lenny of the Portland City Council (from "Of Mice and Men"). "Oh gee, I didn't mean to break!"

    Bob Tiernan

  • aaron (unverified)
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    HAPPY NEW YEAR!!!!!!

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    Maybe, besides some low income housing issues (not looking at the SoWa with all its subsidies and no low-income housing), he screws up everything he touches.

    This is the claim. Yet the main thing people talk about is the water bureau. I guess I'd say if you claim he's messed up so much, let's have your data. That's why I call it unhinged.

  • Jason (unverified)
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    He will be missed. I hope this is not related to any health or family problems.

    Not only was he a great person, he was also a great advocate for progressive and populist causes. Public ownership of PGE and low income housing are just two examples. He screwed up the water bureau, but his other accomplishments more than make up for it.

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    Erik,

    Is by far the best and most important City Commissioner we have had in recent times. As he leaves his office for the last time in April, he will know he has been part of the reason Portland is one of the best places to call home in America.

    I wish him well in whatever he does and hope to see him back again some day.

    Fred

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    I agree, Fred. I've always appreciated his creative approach to solving problems, and his persistence in getting things done.

    Given how he was elected - the media darling of a new generation - he could have spent his time as a showboat, angling for higher office. Instead, he was a workhorse grinding away on tough problems.

    Seriously: chronic homelessness? That's not an issue likely to make you very many friends. But it's critical.

    He made mistakes, to be sure, but the easiest way to avoid making mistakes is to do nothing at all.

    Full disclosure: My firm built Erik's campaign website in 2006 - but I speak only for myself.

  • Jerry (unverified)
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    Jeff Alworth, here's some "data" that you requested about SoWa Affordable Housing not meeting Sten's claim to being an effective advocate.

    Recently, the NM URAC has been developing new 5 year budgets. Both the Short List Draft 11/29/07 and Draft 12/17/07 shows the underfunding for all of the designated affordable housing projects. All the project dates for starting range from 2011 to 2015, and those dates won't be reality because of the underfunding, and not one SoWa project has met schedule.

    Then, can you name one project in SoWa that now has affordable housing? None. Where was Sten on this issue? He was certainly involved in setting spending priorities for SoWa. He voted to spend an additional $48M of general fund tax dollars to bail out SoWa with passage of Amendment 8, after so many cost overruns, after taxpayers paid over $70M in completing just a small portion of the Central District. SoWa still doesn't have a greenway, parks, or pedestrian bridges. They are also unfunded. Sten was suppose to be a strong advocate for those issues too.

  • Miles (unverified)
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    I would suggest to folks who (again) bringing up the Water Bureau thing... go read the interview. He talks about it at length.

    Kari, there is very little in the print or online version regarding the Water Bureau billing system debacle. Is there an unedited version of the interview that contains more? Otherwise, it's sparse.

    I think the animosity towards Erik results from the fact that he personifies the liberalism of Portland -- for good and for bad. He's on the leading edge of every new lefty idea. So is Portland. But sometimes he got so caught up in the big picture he lost track of the boring minutiae of governing, like avoiding the $30 million loss from the screwed up water billing system. This is similar to how Portland spends so much time on the big picture (sustainability! urban development! public campaign financing!) that it fails to pay attention to the smaller things that have a negative impact on people's lives (gentrification, infrastructure decline, mass transit crime).

    In Sten, some people see everything they love about Portland, and others see everything they loathe. But when push came to shove in the last election, Sten kicked Ginny Burdick's ass even though she was backed by $1 million in business money. Very few people expected him to win outright in the primary, and frankly I'm surprised they still refer to the PBA as "powerful" after that little episode.

    Sten will be missed by most of Portland. The minority of discontents will find someone else to dig their fangs into.

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    Jeff,

    I guess I am one of those moderates who has a visceral reaction to Erik Sten. I've tried to puzzle this out, and I think it is not Erik per se, and I don't want to just repeat Miles's insighful comments, but as Miles points out, it is what Erik represents, what I see as the Achilles heel (in my opinion) about Portland politics.

    Portland suffers from the problems of any one-party system: lack of competition; complacency and resistance to different ways of doing things (yes, in our system, the right way or the highway is also the liberal way, but liberalism has its problems as well); self-satisfied assurance that City Hall and downtown's solution is the best solution City wide.

    In this respect, Erik Sten is no different from the other four faces on the Council, but that's the problem. There is no diversity on the Council, understood broadly: diversity of color, gender, economic class, or political approach, and I think that is a problem.

    Unlike Fred and Kari, I give the Council a lot less credit for Portland's reputation as a livable City, and I give a lot more credit to our reputation as a tolerant, livable, affordable City with wonderful natural beauty, decent housing prices, good public schools, and good transportation. Except for the first (environmental) and last (transportation), I think the City has been coasting on decisions made in the late 70s and early 80s, and from a general "new urbanism" boom of the past quarter century.

    I see constant boosterism from the Council, but see a lack of acknowledgment of what I see as some serious problems on the horizon.

    But it could be that I'm just a family guy with four kids in a small house, my kids in overflowing classrooms, and with my electric, water/sewer, and gas all at or over $100/month and a big jump in my property taxes this year, I'm just grumpy.

  • Jennifer (unverified)
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    Don't forget about the "afforable housing" dollars (roughly 16 million of them!) that are being spent on the luxury "Nines Hotel" above Macy's.

    Your tax dollars at rest!

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    Am I the only one thinking that Steve Novick would make an ideal candidate to fill Sten's seat?

  • Bob R. (unverified)
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    Jennifer -

    The Oregonian article about the problems with the "Nines" hotel mentions nothing about affordable housing dollars. It does mention up to 16.9 million of PDC loans (which still are inherently risky, but not the same thing as grants). Assuming the loans are repaid on schedule, the subsidy from the PDC is equal to the opportunity cost of being able to invest or loan that 16.9 million elsewhere at a higher rate of return.

    The Portland Development Commission's extra $3 million loan focuses on environmental and safety improvements. That will pay for dual-flush toilets, storm windows and a high-efficiency water heater. About $810,000 would go to remove lead paint, the single biggest city-funded expense.

    From: http://www.oregonlive.com/printer/printer.ssf?/base/business/1197352506216900.xml&coll=7

    Put together, the city's share of the $133 million project would be $16.9 million in loans. Federal tax credits to save historic buildings and aid poor neighborhoods will help attract another $35.5 million in private money for the luxury hotel. (The Nines falls within a low-income census tract so it qualifies for federal aid.)
  • Bob R. (unverified)
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    (I messed up the block-quotes from the Oregonian article in my comment, above ... the last two paragraphs both are quotes from the Oregonian article.)

  • Messeur Tee (unverified)
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    Jennifer may be on to something. The only reason the PDC was able to subsidize a luxury hotel was because it falls within a "blighted" census tract.

    If the $16 million spent on "The Nines" luxury hotel had been spent on a homeless shelter instead, we could have built sufficient numbers of quonset huts to elminate the need for "the homeless" to sleep outside.

    Granted, the quonset huts would have to maintain a drug/alcohol free policy to maintain order and a safe environment for staff. Said policy would result in hundreds choosing to sleep elsewhere in mild weather months. But at least Opie could have put our money where his mouth was.

    The $16 million may not (technically) constitute "affordable housing" dollars, but the only reason the PDC could get involved was due to the "blighted" definition under the URD guidelines.

    Opie passed a council mandate that 30% of all PDC funds go to affordable housing and I wouldn't be surprised if "The Nines" subsidy counts toward that objective.

  • Poof Daddy T (unverified)
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    In addition to the $16.9 million loan from the PDC, the developers also received $72.5 million in "New Markets Tax Credits". According to the PDC Website definition:

    New Markets Tax Credits: this program encourages investment in low income communities for community revitalization.

    I'm sure those low income communities are going to get a lot of use out of a luxury hotel. At least as much utility as a homeless shelter. Thanks taxpayers!

  • Jerry (unverified)
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    Mister Tee, you're right, "The Nines" $16M PDC funds count for PDC's definition of affordable housing. There are similar projects in urban renewal districts where a $400 per sq. ft. condo or apartment is counted as "affordable".

  • Steve (unverified)
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    "I guess I'd say if you claim he's messed up so much, let's have your data."

    I belive the onus is on you to show he is even a degree above mediocre in my eyes. I am not raising too high a bar, I mean, he's been a City Comm for a while and what has he accomplished. I'll grant the homeless housing, but why not get a job doing that.

    My issue is that he gets classified a progressive and suddenly he can do no wrong in your eyes.

    I'll grant you the regular votes on things like George-Bush-is-an-Idiot (how many Iraq resolutions have we wasted time on), but while this distracts you, how does he help the average taxpayer with these Quixotic tilts at PGE, WiFi and voter-financing of elections.

    Now we get to hear Mr Adams request a big tax increase to fix roads which should have been fixed on for the past 15 years while Erik backs things like SoWa to help some $600K condo dwellers and doctors.

  • Bob R. (unverified)
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    ... while Erik backs things like SoWa to help some $600K condo dwellers and doctors.

    Steve, I hate to be the one to break this to you but the majority of the condos in the Pearl District sell for well under $600K. In fact, the median value according to Zillow.com is $291,000.

    http://www.zillow.com/real-estate/OR-Portland/Pearl-District

  • Bob R. (unverified)
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    Pardon me, I see you said South Waterfront, not Pearl District. A quick web search does not reveal median prices for the South Waterfront.

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    Funny how Sten gets the blame for running Water, but no one ever mentions that he also oversees likely the most well-run bureau in the City, the Fire Bureau--most of the time while it suffered under repeated budget cuts. Two independent audits in the last three years have given it very high marks overall, compared nationally and internationally. I think that's mostly a tribute to the management and labor of PF&R working together, but if you're going to hold him to account for bad oversight (which he would admit you should), he should receive credit for good oversight.

    [Yes, I work there--but you can read the audits (Service Delivery Study and CFAI accredidation review) and look over the budgets yourself.]

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    Unlike Fred and Kari, I give the Council a lot less credit for Portland's reputation as a livable City

    Huh? Where did I say that?

    Sure, the City Council gets some credit - but there are much larger forces at work. Read anything by Carl Abbott (PSU prof of urban studies) to understand the big view.

  • Indira (unverified)
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    The interview on line is great. Erik is honest and offers insights into Council. I believe it reinforces how sad it is to have womanizer , pro developer, economic nit wit in Leonard on Council. Here are the thoughts I posted on the Mercury Blogtown discussion. My comments on County Commissioner Maria Rojo de Stefani are no longer a discussion point since she spoke with my partner right after I sent the message yesterday and is clearly not running.

    This is sad news for Portland. Erik Sten was the least patriarchal of the all male city council revue. I even found Sam to be deferential to males over any women. I don't consider Sam to be a "diverse candidiate". I want a more diversely experienced person on Council.

    On the positive side it is an opportunity for another woman to run for a Council seat. I am a fan of a number of women. While I am not a fan of Maria on County Commission, Maria Rojo de Stefano has already said she wants to take on the the male dominated council. It seems perfect for her to run against the two men who announced today they are running for Erik's seat.

    If she actually runs for Sam's seat, I would have to say she is disingenuous in her statement about wanting to run against the all white male Council. If she runs against Amanda Fritz and African American candidate John Branam, she is once again demonstrating thay she is a hypocrite.

    Hopefully a woman better then Maria will run, but she is better then Fish. She has a rather poor record on County Commission with her history of fiscal disasters and giving money to questionable organizations and old friends.

    Happy New Year everyone!!!

    I. Singh

  • Mike (unverified)
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    "but the easiest way to avoid making mistakes is to do nothing at all."

    Now that is what I am looking for in politician!

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    Re SoWa and affordable housing:

    I was at a meeting last night of the Military Families & Veterans sub-group of the PDX Peace who were talking about plans for the upcoming March 15 "Day of Mobilization for Peace and Hope" (which will include a rally and march but also a much more extended program of activities and presentations in an all-day sort fo "tent city").

    Someone brought up Erik's resignation and there was a lot of worry expressed. Apparently he has been working extensively with Veterans for Peace & some other vet organizations to create really affordable housing in South Waterfront with a veterans' focus that might particularly cater to homeless & marginally housed veterans. And of course the location would be great for that given the proximity to the V.A. Hospital, & it would help justify the tram a little better in terms of V.A. access. I can only hope this gets nailed down before Sten leaves, or that he manages to convince one of the other commissioners to step up as main advocate/negotiator.

  • paul gronke (unverified)
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    Kari, I mistyped. And yes, I've read Carl Abbott's stuff and agree with it. I guess I'm still smarting from the rhetoric after the Charter revisions, where basically everything good about Portland was attributed to the Council and the commissioner system, which as you know, is pretty much BS. And I really, really think the City would benefit from a district system.

  • Roberta J (unverified)
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    Comment on comments on the Mercury blogtown today.

    The biggest kept secret in Portland is overpaid and unqualified City employees. Sten seemed to be an honest voice in City hirings. He will be missed.

    Mercury Reporter Amy Ruiz and Mr. Guli are on to an important point about the growing gap in Portland between those who own a house, make good money, and are connected vs. those who can't even get in the door at the City or other jobs. Citizens with Doctorates and Masters in their respective fields often lose out to a friend of another City employee, elected official, or their staff.

    I am sure Amy makes a quarter of what most lazy City employees make. I would love to see a hard working person like Amy in a position such as the one that Mr. Guli describes that a former Dental Hygienist is now in. Doesn't this dental hygenist need experience? I even called the City Hr staff and all I got was , "we can't talk about hirings. I am sure the best qualified employee was hired."

    If you lose your job in Portland or move here as a new Oregonian transplant, good luck getting a job. I know a group of accomplished professionals who have tried for years to get jobs in the City. They have reported unusual dealings with the City hiring staff and most of the jobs have oddly enough tied back to Randy Leonard's agencies.

    If philosophically we want opportunities for the less connected individuals in Portland, then it starts at the City. The first goal might be creating a whole new HR process with little direct decision making from an elected official's office. I have heard horror stories from a friend Tom who knows the issues at HR from his direct involvement. Tom is burned out and told me he simply does not get involved any more. Can I blame him? If he speaks up about the corrupt hirings he will lose his job and be forced to work for a third less in the private sector.

    I just read the report that Salvador linked. It is so funny that the Auditor did not use real world examples. How can we find out how many of the problems were in a particular elected Official's Office? If Commissioner Leonard did something questionable in hirings, I see it as a break in the public's trust and one that is as big as Goldschmidt's crimes.

    While I would never want to work with the dirty politics I have heard of at the city, I would still like a fair shot to walk in and apply for a job and know it was not a "done Deal".

    I suggest we start a list of the "questionable" employees at the city. This may be the impetus for Amy Ruiz and other reporters to examine City Council and their excessive influence on hirings.

    Roberta J.

  • Bob Tiernan (unverified)
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    I guess my last word on Sten is that he was allowed to take money from Fat Cats (even those who apparently are opposed by the majority of people who like this blog) without any of the criticism similar (and often the same) donors trigger for non-progressive candidates.

    Here's one last look at donations to Sten campaigns:

    Some contributions to Erik Sten (Portland City Council)

    [2002 and 1996]

    GSL Properties--------$3,000.00 --- $ 500.00 Kenneth Novack (Schnitzer Investments)-------$5,000.00 (2002) Tom Walsh (Cruz father-in-law) (Walsh Const)------$2,500.00 --- $7,940.00 Bob Walsh (Walsh Const) ---- $7,500.00 (1996) Don Morrisette Homes, Inc.--------$1,000.00 --- $ 500.00 Bob Gerding (Real estate)---$2,500.00 (2002) Conwest Resources, Inc.-----$5,000.00 (2002) H. Naito Corporation--------$1,000.00 (2002) Imsport, Inc.---------------$1,000.00 (2002) R. B. Pamplin Corp----$2,500.00 --- $1,500.00 HDR Engineering, Inc.-----$2,500.00 (2002) Rose Quarter--------------$1,000.00 (2002) John Russell (Office bldg owner)-------$1,000.00 (2002) Joseph Weston (Real estate developer)------$1,000.00 (2002) James Winkler (Real estate developer)-----$2,500.00 ---$ 500.00 Ramis Crew Corrigan & Bachrach LLC-----------$1,000.00 (2002) Bay City LLC-----------$2,500.00 (2002) BPM Associates, LLC----$2,000.00 (2002) D Park Corp------------$2,000.00 (2002) MWS Holdings (Tempe, Ariz.) [big bad water broker!]--$1,000.00 (2002) MWH Global (wastewater; UK/Pasadena based)---$2,500.00 (2002) Frank A Bitar & Assoc (property mgm't)----$1,000.00 ---$1,000.00 Philip Smith (Finance manager)----$2,500.00 ---$ 647.00 Heritage Investment Corp.---$1,000.00 (2002) Pat Pendergast (Real estate developer)---$950.00 --- $500.00

    (Source: C&E Reports, 2002 & 1996)

    Bob Tiernan

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