This story came out of the Sentinel, it gives a different version of the Brad Mitzelfelt -County funded public/private venture with the now indicted Colonies defendants Jeff Burum and Paul Biane. It is another tie between Mitzelfelt and the Colonies group that needs to be noted.

 County Ending Pact With Inland Empire Economic Recovery Corp
 
San Bernardino County has undertaken to bring to a close its association with the Inland Empire Economic Recovery Corporation, the brainchild of current county supervisor Brad Mitzelfelt, former county supervisor Paul Biane and Rancho Cucamonga-based developer Jeff Burum.

The county moved to withdraw from the public-private partnership one week after grand jury testimony pertaining to the criminal case on charges of extortion, bribery and bribe-taking against Biane and Burum was publicly released.

On January 13, 2009, the board of supervisors approved a three-year agreement in the amount of $2.5 million with the Inland Empire Economic Recovery Corporation (IEERC) for the purposes of acquiring and rehabilitating foreclosed residential properties, locating qualified buyers, and assisting in the sale of the improved properties. The IEERC was formed as a nonprofit public benefit corporation to assist the county and the region in an economic recovery effort and to aid in the prevention and reduction of blight.
The declared purpose of the initial agreement was to stabilize communities, minimize the fiscal impact of the foreclosure crisis on the public and facilitate collaboration for comprehensive solutions.

On June 16, 2009, the board of supervisors approved an amendment to the contract with IEERC, resulting in procedural changes to the discount percentage goal and acquisition method, which allowed for a pre-approval qualification process.

In a report to the board of supervisors dated July 26, county chief executive officer Greg Devereaux made no mention of the criminal case against Biane and Burum, both of whom were indicted in May on conspiracy and bribery charges. Instead, he represented the partnership as a successful undertaking that met its initial goals and that the time has come for the county to make its exodus quietly.

“The initial participation agreement allocated $2.5 million from contingencies to fund the acquisition, rehabilitation and resale of distressed housing,” Devereaux told the board. “A portion of the allocation was utilized for startup and ongoing operational costs and a portion ($225,000) has been retained to fund operations through the conclusion of the participation agreement. As a result of this amendment and the conclusion of the participation agreement, the Inland Empire Economic Recovery Corporation shall reimburse the county a total of $1,575,000 no later than January 12, 2012.

The county has already received a total of $797,874.90 as of June 30, 2011, which will be returned to general fund contingencies. This action does not involve a federal program or the use of any federal funds. IEERC is now firmly established and has achieved many of the original goals set forth by the board. At the conclusion of the participation agreement, the public-private relationship between IEERC and the county of San Bernardino will have resulted in the acquisition, rehabilitation, and sale of thirty-two bank-owned houses. The renovation and sale of these houses created approximately 54 full and part-time jobs for area residents. In addition, many families and individuals, who may not otherwise have had the opportunity, were able to realize the dream of home ownership. As the end of the term of the participation agreement approaches, both parties are desirous of a well-planned transition that will allow IEERC to continue to fulfill its original mission.

On March 10, 2011, the county initiated the process by notifying IEERC of its intention to execute an exit strategy that included an investment-recovery and transition plan that would ensure a smooth and timely conclusion to the county’s partnership with IEERC. The county and IEERC collaboratively agreed upon an exit strategy, which culminated in the amendment before the board of supervisors.”

Under the terms of that amendment, the second one made to the original contract between the county and the Inland Empire Economic Recovery Corporation, according to Devereaux, “IEERC shall discontinue the use of county funds for new acquisitions; IEERC shall reimburse the county a total of $1,575,000; IEERC shall retain $225,000 to fund operations; IEERC shall provide reports to the county on each unit purchased or rehabilitated with county fun the county will not have the right to designate members to the IEERC board of directors; and the term of the participation agreement shall terminate on either the date IEERC pays the agreed upon reimbursement of county funds or January 12, 2012, whichever is earlier.”

Devereaux was charitable in his assessment of IEERC’s work, saying he wanted to “allow for a structured, well-planned conclusion to the public private relationship with IEERC, result in the recovery of $1,575,000 of the county’s original investment, and allow for the continued success of the organization.”