Sycamore North Comments Prompt Former Councilman to Defend Himself

Former Hercules City Councilman Don Kuehne recently wrote in to defend his himself against claims of his role in the failed Sycamore North project. Prompted by comments under Patch’s recent post, , Kuehne said he was unjustly blamed for Sycamore North decision-making that predated his term on the council.

“All of the planning, design reviews, entitlement, and financing plans were completed before I came on the City Council in December 2008,” Kuehne commented.

Kuehne began serving as a councilman in December 2008. His term was cut short in 2011, when he was in a June election and replaced by Gerard Boulanger.

In part, recall leaders pushed to remove Kuehne and council members Ed Balico and Joanne Ward for lack of oversight of city finances, which contributed to the Hercules’ shaky financial present. -- the incomplete and money-draining mixed-use building -- was one example of how the council members failed to protect city funds, recallers said.   

Below is Kuehne’s full comment. And here is the .

"All of the planning, design reviews, entitlement, and financing plans were completed before I came on the City Council in December 2008. You should remember that Council Member De Vera was chair of the Planning Commission while Sycamore North was going through the planning process. Some of the current Planning Commissioners were involved, also.

"I did endorse the City staff's recommendation to proceed with construction of Sycamore North in June 2009. I did not become aware of the financing shortfall until Mr. Long reviewed the project in November 2010. In the spring of 2011, I voted to stop construction and look for a suitable buyer to finish the project.

"The major reason Sycamore North failed was the sharp decline in real estate values due to the great recession and collapse of the financial markets. The City could not secure a construction loan to finish the project.

"Bayside property values are not directly linked to the Sycamore North project. Property values dropped throughout Hercules and some valuations in the older neighborhoods are back to 1990's levels.

"P.S. I will no longer tolerate the use of slanderous terms like "co-conspirator" in posted comments,” Kuehne wrote.