Jose Moreno: Unilaterally Changing 4-Diamond Hotel Agreements Puts Anaheim In “Breach of Contract”

moreno janus feat AB

The Anaheim Resort unions are trying to place a measure to radically boost the minimum wage from the current $11 to $18. It would apply – at least initially – to Anaheim Resort business that receive TOT or sales tax rebates or other economic assistance.

If it qualifies and is approved by voters, it would constitute a retroactive, unilateral change to the economic assistance agreements between the city and several 4-Diamond hotel projects: the GardenWalk Hotels, two Wincome hotels and a new Disney hotel.

Anaheim City Councilman Jose F. Moreno supports the unions’ $18 minimum wage campaign. He’s even gone so far as to agendize having the authors of a report paid for by the Anaheim Resort unions brief the Anaheim City Council on why they think – contrary to overwhelming data to the contrary – this abrupt, dramatic  and artificial increase in the cost of labor will magically spur, rather than depress, job creation.

Moreno’s support for retroactively and unilaterally changing those contracts is curious. Several weeks ago, he said Anaheim couldn’t change the economic assistance agreements for those 4-diamond hotel projects, because to do so would put the city in breach of contract:

When Anaheim voters approve an initiative, they are directly exercising the legislative power normally reserved to the city council. In other words, they are acting as the city council. If voters approve this initiative, it would be no different than the Anaheim City Council voting to unilaterally amend its contracts with those hotel developers – who have already made it very clear they’re opposed to this change and will likely cancel these hotel projects if the union measure becomes law.

One doesn’t have to support those agreements to understand this is treading into banana republic territory. When contracts stop being contracts in this manner, it undermines our system of ordered liberty. Proponents may like the immediate results, but the longer term damage is profound.  It will be interesting to see if Councilman Moreno address the inherent contradiction between his February comments and his support for this destructive, misguided initiative.

12 comments

  1. Most of us know Moreno is a two headed snake, so talented that he can talk out of both sides of his mouth and know one will notice.

  2. Not going to make the ballot. So really not much of an issue.

  3. “If it qualifies and is approved by voters, it would constitute a retroactive, unilateral change to the economic assistance agreements between the city and several 4-Diamond hotel projects: the GardenWalk Hotels, two Wincome hotels and a new Disney hotel.”

    Are you saying that those agreements preclude such an ordinance from going into effect? It’s clear that you think it’s a bad thing to do, but are you saying that it also is prohibited by contract? Eagerly awaiting your clarification — or,perhaps, less eagerly awaiting your deflection and obfuscation. (Mostly, I just want to assess your understanding of contract law, if you’re trying to deploy it here.)

    • I don’t know the answer to your specific question, Greg. But do you think it is OK for one party to a contract to unilaterally change the terms of the contract? I think that is antithetical to idea of a contract.

      • I think there’s a good chance that our city will have to pay the wage to Disney as a fee on their park entry. Not well thought out.

  4. Yet another moronic cause for Moreno. He can be proud of his stance on the homeless, great job letting the bums turn the SART into a shanty town.

  5. Remember that Mayor Tait is in business with the Garden Grove hotels. Then this all starts to make sense (who benefits from an 80% increase in labor costs for hotels in Anaheim? Garden Grove hotels!). Moreno’s grabbing the pro-labor mantle in the press, but really he’s just doing the dirty work for his political boss: the Mayor.

  6. Moreno, how about $28 per hour? After all they work very hard, harder than you know.

  7. Jose Moreno should not be able to take it upon himself to legally or unilaterally change or void established Anaheim City contracts. Doing so would put Anaheim city in a serious liability position and doing so Moreno wouldn’t be meeting his fudicary responsibility to Anaheim so he could be sued.

  8. Some Daze are Diamonds

    Jose Moreno has never managed a payroll. He’s never worked in an industry we’re his performance determined his paycheck. Maybe Julio Perez could advise him

  9. DID THIS CRAZY STUFF GO ANYWHERE. Jose scares me. This afternoon’s EMAIL with a chart linking him to HB Activist (of questionable moral turpitude), funding various groups and Non-Profits ESPECIALLY “Orange County Community Housing Corporation / SteppingUP.

    SEE BELOW, A letter, Moreno allies drafted, LAST YEAR trying to pry an “EXCLUSIVE” agreement between OC’s largest city and a unemployed, recovering addict, with a website and a mediocre idea to solve homelessness. HOW ON EARTH CAN THIS BE CONSIDERED?

    October 20th, 2017
    City of Anaheim
    200 S Anaheim Blvd
    Anaheim, CA 92805
    Attention: Ms. Kristine Ridge, Assistant City Manager
    Dear Ms. Ridge,
    I want to thank you for all the time and focus you have put forth in helping our community discover solutions to our local and regional homeless problem. As you know, I have been attending all the recent Homeless Policy Working Group meetings and prior to this have been an advocate for long term solutions for the homeless issues we are dealing with in the Anaheim/Orange County area. I have prepared a comprehensive plan that addresses the emergency needs of the hundreds of people that are being forced to live on our streets, in our parklands, and in the riverbed. We all know of the issues of crime, unsanitary conditions, and drug abuse that occur in an uncontrolled living environment. These issues are impacting our homeless population and, as important, are impacting the quality of life for residents and businesses in our area. The negative trend we are experiencing must be stopped and reversed immediately or what we know as our peaceful society will end up in anarchy.
    Ms. Ridge, with this letter/email, I am requesting that the City of Anaheim enter into an Exclusive Negotiation Agreement (ENA) for the express purpose of vetting my forthcoming proposal to develop an Emergency Housing Facility to immediately address and solve the negative issues associated with homelessness in our area.
    Aspects open for negotiation in my forthcoming proposal will include but not be limited to:
    1 – An operating partnership with the County of Orange, the City of Anaheim, and numerous adjacent cities via my non-profit organization known as Alfresco Gardens.
    2 – All funding for the development of the facility will come from private sources with no subsidy by the County, the City of Anaheim, or any other government agency.
    3 – The City of Anaheim would lease the property known as the “Karcher Site” to Alfresco Gardens for a negotiated long term, and, reasonable rate in order to accommodate the economics of our business model.
    4 – The facility will be developed compliant with all local, state and federal occupancy codes and land use regulations.
    5 – The facility will be designed with the endorsement, involvement, and support of the neighboring property owners, ACLU, Local Law Enforcement, and any other person or organization that might be impacted directly or indirectly by its existence.
    6 – Once the facility is up and running in a stable state, local law enforcement organizations will agree to strictly enforce local anti-camping laws and will direct homeless persons to the facility for dignified, safe, secure emergency housing.
    7 – The facility will be designed under the scrutiny of ADA experts, the Anaheim Building Department, and any other person or organization that is directly or indirectly impacted by its existence.
    8 – Once open, the entire operation will be subject to ongoing government regulation and audit of financial, security, noise, safety, security, sanitation and any other operational aspect not less than weekly.
    Ms. Ridge, please contact me as soon as practical so that we can meet and discuss how to move forward with an ENA without delay. Time is of the essence.
    Thank you for your time,
    Nancy West

  10. Moreno will only be happy when Anaheim looks like the bad part of a 3rd world country on a bad day. He insists on bringing in more homeless, and has no problem bragging about it. His ideas are juvenile and never once voted for what the residents want.

    I can’t stand him, and will be SO happy when he’s out.

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