Source

Tempe officials stand behind lake developer
Manager had conviction expunged in California

Katie Nelson and Jahna Berry
The Arizona Republic
May. 25, 2006 12:00 AM

Tempe leaders say they are standing behind the point man for a multimillion-dollar hotel project proposed for Tempe Town Lake, despite a California criminal conviction.

Documents and interviews show that Brad Gorman, chief executive officer of Laguna Pacific Companies, was convicted in 1997 of felony grand theft from a business partner in connection with a $20 million real estate deal.

A Los Angeles County Superior Court judge sealed most of Gorman's court records in April 2000.

Gorman says the criminal matter was "based on false accusations." Citing privacy concerns, he declined to comment further or release any court documents related to the case, noting that the California judge later expunged his record.

"I think it's put to rest; it is what it is, and it's a done deal," Gorman said.

Gorman's firm is the lead developer of a proposed project of tony lofts, four-star hotel rooms, shops and restaurants on the shores of the lake. A team led by Gorman agreed to pay $42.5 million for 27 acres on Tempe's lakefront.

Gorman and another Laguna Pacific official, Michael Barker, will be the lead negotiators for the Pier 202 group as they finalize a development agreement with Tempe. That document could go before City Council as early as June.

"I am comfortable with the team of people involved with this project," Mayor Hugh Hallman said Wednesday. "We have made sure that the city will not be put at risk for this project."

Trouble in Los Angeles

Los Angeles County Superior Court docket records show Gorman was convicted of grand theft in 1997. He was sentenced to 180 days of county jail or electronic monitoring, and three years of probation. Other records show he paid $90,000 in restitution.

His attorney, Anthony Glassman, said Gorman did not go to jail but served 180 days of probation while wearing a monitoring bracelet. No other court documents or details of the case were available because of the court seal.

In June 2003, Gorman was removed from a $107 million high school construction project after Los Angeles Unified School District officials found out about his conviction.

"It's pretty simple," said Bob Williams, a Los Angeles Unified School District deputy inspector general. Williams' office investigates fraud and waste for the district. "Anyone who's convicted of a felony, we'd rather not do business with," he said.

A June 5, 2003, article in the Los Angeles Daily News detailed the inspector general's report, stating that the project's main developer pulled Gorman from the team under school district pressure.

Inspector general officials would not provide a copy of the report to The Republic, citing confidentiality rules. Williams described the Daily News article as "accurate."

Gorman and his lawyers dispute the Daily News article, however. Attorney Peter Laird said the story is "factually false" but said Gorman never sought a correction.

Glassman, another of Gorman's attorneys, added that the California article was factually incorrect because it was written after the case had already been expunged, and Gorman was no longer considered a felon."Under clear and existing California law, it's as if it never happened. He is not a felon," Glassman said. Expungement is a relatively common California court procedure that allows criminal defendants under some circumstances to clear their record after a conviction to get a fresh start.

Arizona has no expungement statute, but the state does have a law that allows someone to apply to have the judgment of conviction set aside. If that is granted, however, it does not mean a person can deny the existence of the conviction under Arizona law, attorneys say. In California, if a judge grants a request to expunge a defendant's record, it essentially seals the record, making it easier to pass a criminal background check, a prerequisite for many jobs. After the record is expunged, a person would not be required to disclose the conviction to an employer in many cases.

Expunging a case does not mean the defendant is innocent of the crime, said Gerald Uelman, a Santa Clara University law professor. If a defendant commits a new crime, Uelman added, the old criminal case could be taken into consideration.

Expungement does not erase the fact that there was a conviction "because you have been convicted and you have been found guilty," the professor said. "It's really a finding of rehabilitation, in effect."

In January, the Tempe City Council voted to exclusively negotiate with Pier 202, LLC, a group of home builders, retail developers and consultants led by Gorman. Pier 202 agreed to pay $42.5 million.

Tempe officials are anxious to develop the property because the city is paying millions annually on lake-related expenses. This is one of the few chances they have to play a direct role in developing the lake because other entities own much of the other property on its shores. City leaders also see the impending land sale as a rare chance to resuscitate hotel plans dashed when a Peabody Hotel project fell through in 2001.

Hallman has already proposed rehabilitating aging city parks with the money from the Pier 202 deal.

As negotiations continue, Gorman and his attorney have downplayed Gorman's role in the project, describing him as a minor player.

"The bottom line is I'm not even less than 1 percent of a percent of the project, other than to coordinate and help out a huge 900-pound gorilla firm," Gorman told The Republic.

"I'm the managing guy, controlling the group while we're going through the beauty contest," he added.

Gorman's name, though, is the one that appears throughout Pier 202's glossy, 30-page pitch to the city. In the proposal submitted May 16, 2005, Gorman was listed as "managing partner" and the "primary point of contact throughout all competition phases and contractual negotiations."

As the lead negotiator, his signature appears on the bottom of the proposal's cover letter.

During the Jan. 5 City Council meeting, Community Development Manager Chris Salomone referred to Laguna Pacific as the lead developer in the Pier 202 project. The proposal describes Laguna Pacific as being founded in 1924 with headquarters in Irvine, Calif., where it "represents three generations of the Gorman family."

City leaders confident

Tempe leaders say the hotel project will proceed, and the City Council recently signed a memorandum of understanding with Pier 202, a crucial step toward finalizing the land sale.

Hallman said there are big differences between the Pier 202 deal and the earlier, failed Peabody deal.

"We are not investing our resources into this project," Hallman said. "There will not be this drawn-out game of delay. This will get built or we will move forward with someone else."

Councilman Len Copple said he has not been briefed on the issue recently and declined to comment.

Council members Pam Goronkin, Mark Mitchell, Hut Hutson and Ben Arredondo did not return calls for comment. City spokeswoman Nikki Ripley said that council members have been told to refer calls to City Attorney Marlene Pontrelli.

Gorman's expunged conviction did not come up during the city's initial background research for the proj- ect.

Tempe took additional steps after inquiries from The Republic, Salomone said. The city contacted California attorneys and talked to Gorman's lawyer. Salomone would not disclose what the city learned.

"We also feel bound by confidentiality," he said.

Pontrelli said she has not received any court documents from Gorman's lawyer, but said she is not concerned about Gorman's past. Pontrelli said she and Salomone looked into the allegations that were in the Daily News article, "and we are satisfied that the article is false."

Source

Tempe officials stand behind lake developer
Manager had conviction expunged in California

Katie Nelson and Jahna Berry
The Arizona Republic
May. 25, 2006 12:00 AM

Tempe leaders say they are standing behind the point man for a multimillion-dollar hotel project proposed for Tempe Town Lake, despite a California criminal conviction.

Documents and interviews show that Brad Gorman, chief executive officer of Laguna Pacific Companies, was convicted in 1997 of felony grand theft from a business partner in connection with a $20 million real estate deal.

A Los Angeles County Superior Court judge sealed most of Gorman's court records in April 2000.

Gorman says the criminal matter was "based on false accusations." Citing privacy concerns, he declined to comment further or release any court documents related to the case, noting that the California judge later expunged his record.

"I think it's put to rest; it is what it is, and it's a done deal," Gorman said.

Gorman's firm is the lead developer of a proposed project of tony lofts, four-star hotel rooms, shops and restaurants on the shores of the lake. A team led by Gorman agreed to pay $42.5 million for 27 acres on Tempe's lakefront.

Gorman and another Laguna Pacific official, Michael Barker, will be the lead negotiators for the Pier 202 group as they finalize a development agreement with Tempe. That document could go before City Council as early as June.

"I am comfortable with the team of people involved with this project," Mayor Hugh Hallman said Wednesday. "We have made sure that the city will not be put at risk for this project."

Trouble in Los Angeles

Los Angeles County Superior Court docket records show Gorman was convicted of grand theft in 1997. He was sentenced to 180 days of county jail or electronic monitoring, and three years of probation. Other records show he paid $90,000 in restitution.

His attorney, Anthony Glassman, said Gorman did not go to jail but served 180 days of probation while wearing a monitoring bracelet. No other court documents or details of the case were available because of the court seal.

In June 2003, Gorman was removed from a $107 million high school construction project after Los Angeles Unified School District officials found out about his conviction.

"It's pretty simple," said Bob Williams, a Los Angeles Unified School District deputy inspector general. Williams' office investigates fraud and waste for the district. "Anyone who's convicted of a felony, we'd rather not do business with," he said.

A June 5, 2003, article in the Los Angeles Daily News detailed the inspector general's report, stating that the project's main developer pulled Gorman from the team under school district pressure.

Inspector general officials would not provide a copy of the report to The Republic, citing confidentiality rules. Williams described the Daily News article as "accurate."

Gorman and his lawyers dispute the Daily News article, however. Attorney Peter Laird said the story is "factually false" but said Gorman never sought a correction.

Glassman, another of Gorman's attorneys, added that the California article was factually incorrect because it was written after the case had already been expunged, and Gorman was no longer considered a felon."Under clear and existing California law, it's as if it never happened. He is not a felon," Glassman said. Expungement is a relatively common California court procedure that allows criminal defendants under some circumstances to clear their record after a conviction to get a fresh start.

Arizona has no expungement statute, but the state does have a law that allows someone to apply to have the judgment of conviction set aside. If that is granted, however, it does not mean a person can deny the existence of the conviction under Arizona law, attorneys say. In California, if a judge grants a request to expunge a defendant's record, it essentially seals the record, making it easier to pass a criminal background check, a prerequisite for many jobs. After the record is expunged, a person would not be required to disclose the conviction to an employer in many cases.

Expunging a case does not mean the defendant is innocent of the crime, said Gerald Uelman, a Santa Clara University law professor. If a defendant commits a new crime, Uelman added, the old criminal case could be taken into consideration.

Expungement does not erase the fact that there was a conviction "because you have been convicted and you have been found guilty," the professor said. "It's really a finding of rehabilitation, in effect."

In January, the Tempe City Council voted to exclusively negotiate with Pier 202, LLC, a group of home builders, retail developers and consultants led by Gorman. Pier 202 agreed to pay $42.5 million.

Tempe officials are anxious to develop the property because the city is paying millions annually on lake-related expenses. This is one of the few chances they have to play a direct role in developing the lake because other entities own much of the other property on its shores. City leaders also see the impending land sale as a rare chance to resuscitate hotel plans dashed when a Peabody Hotel project fell through in 2001.

Hallman has already proposed rehabilitating aging city parks with the money from the Pier 202 deal.

As negotiations continue, Gorman and his attorney have downplayed Gorman's role in the project, describing him as a minor player.

"The bottom line is I'm not even less than 1 percent of a percent of the project, other than to coordinate and help out a huge 900-pound gorilla firm," Gorman told The Republic.

"I'm the managing guy, controlling the group while we're going through the beauty contest," he added.

Gorman's name, though, is the one that appears throughout Pier 202's glossy, 30-page pitch to the city. In the proposal submitted May 16, 2005, Gorman was listed as "managing partner" and the "primary point of contact throughout all competition phases and contractual negotiations."

As the lead negotiator, his signature appears on the bottom of the proposal's cover letter.

During the Jan. 5 City Council meeting, Community Development Manager Chris Salomone referred to Laguna Pacific as the lead developer in the Pier 202 project. The proposal describes Laguna Pacific as being founded in 1924 with headquarters in Irvine, Calif., where it "represents three generations of the Gorman family."

City leaders confident

Tempe leaders say the hotel project will proceed, and the City Council recently signed a memorandum of understanding with Pier 202, a crucial step toward finalizing the land sale.

Hallman said there are big differences between the Pier 202 deal and the earlier, failed Peabody deal.

"We are not investing our resources into this project," Hallman said. "There will not be this drawn-out game of delay. This will get built or we will move forward with someone else."

Councilman Len Copple said he has not been briefed on the issue recently and declined to comment.

Council members Pam Goronkin, Mark Mitchell, Hut Hutson and Ben Arredondo did not return calls for comment. City spokeswoman Nikki Ripley said that council members have been told to refer calls to City Attorney Marlene Pontrelli.

Gorman's expunged conviction did not come up during the city's initial background research for the proj- ect.

Tempe took additional steps after inquiries from The Republic, Salomone said. The city contacted California attorneys and talked to Gorman's lawyer. Salomone would not disclose what the city learned.

"We also feel bound by confidentiality," he said.

Pontrelli said she has not received any court documents from Gorman's lawyer, but said she is not concerned about Gorman's past. Pontrelli said she and Salomone looked into the allegations that were in the Daily News article, "and we are satisfied that the article is false."