(Blog) The Ochoa Loan: Relevant Documents in the Raw

Documents related to the Scott Ochoaw sweetheart loan from City Hall that he now wants "restructured."

I first learned of Scott Ochoa's sweetheart loan form the City of Monrovia several years ago when I was a contributing blogger at The Foothill Cities Blog.

Attached here I have uploaded several of the relevant documents, including the promissory note.

Here's the most important section:

The monthly payments shall initially be in an amount equal to two fifths of the interest on the Principal balance, (i.e., interest at the rate of two percent (2.0%) per annum); however, upon 30 days' prior written notice to Lender, Borrower may increase the monthly payments to a sum sufficient to fully amortize the outstanding Principal and pay all interest (including interest accrued as of the date of the first such increased payment) based on a 30-year loan amortization schedule and a 5.0% annual interest rate. All interest not paid by the foregoing payments shall accrue and shall be payable upon the Maturity Date (or acceleration thereot); however, such accrued interest shall not itself bear interest.

So, with the sale of the house, Ochoa owes the taxpayers of Monrovia eight years of 3% interest in arrears - PLUS the principal!

Also in the documents from that period is a repayment history which shows Ochoa was repaying the City at a rate of $460 a month on that $275k loan.  Is it any wonder he's now in arrears?

Instead of making payments like the rest of Monrovia would - full interest plus principal - Ochoa paid interest only at an extremely generous rate.  And now it seems even that wasn't generous enough to a guy who was paid nearly a quarter-million per year.

As a taxpayer and homeowner, I must ask:  Why are we even having this discussion?

This post is contributed by a community member. The views expressed in this blog are those of the author and do not necessarily reflect those of Patch Media Corporation. Everyone is welcome to submit a post to Patch. If you'd like to post a blog, go here to get started.

Steve Buckner June 30, 2012 at 06:39 PM
Robert, Thank You. I thought most people in Monrovia where sheep. Glad someone else can show how these money pit, back scratchers do busness. I must give Mr Adams some Brownie points for stating what is right and what is way off base. You don't see anyone else from the city councel saying a thing. Choosing ME Before WE, Right Scottie.
Robert Parry June 30, 2012 at 06:47 PM
Reading Mr. Adams' comments, I don't think he's nearly as offended as the rest of us.
SgtJackWagon July 01, 2012 at 01:56 PM
Doesn't Mr' Adams dabble in real estate? Hmmmmmmm!
Joe Black July 02, 2012 at 12:36 AM
I think the residents of Monrovia should be outraged! If any members of the City Council approve forgiving or restructuring any of the amounts owed, I will be circulating a petition for a recall election for those individuals. It is bad enough that the loan was made in the first place. If the Council wants to help Scott out, they can do so with their personal funds.
Dan Crandell July 02, 2012 at 04:45 AM
No worries Monrovian's. Scott will withdraw his request prior to Tuesday' meeting. He reads the Patch and so do each member of the council members. Let's keep the heat on and this will pass. For sure let us all be there in huge numbers just to keep it honest. See you at "OUR Town Council Meeting".
Therese B. July 02, 2012 at 05:12 AM
Scott, sure hope your reading this!! I have met you several times and you seemed like a very nice man. I am so disappointed in what you have done to us and my fellow Monrovians!!! How can you sleep at night...the way you took advantage of we tax payers. Aren't you ashamed of yourself? I can't believe you ONLY paid $460 a month on that $275k loan !!!!! When We have sooooooooo many Monrovians down on their luck. Possibly jobless and homeless and you want us to bail you out!!! Suck it up soldier!!! I have no pity for you!!!
Tom Adams July 02, 2012 at 03:38 PM
Robert, you get my comments on Tuesday at the public meeting as it should be. This is a wonderful vehicle for me to listen to you. The really good part is you don't even need to get dressed up and come to the meeting.
Nematoda July 07, 2012 at 06:18 AM
I have to agree with everyone here. Mr. Ochoa was paid very, very well by the city of Monrovia and is being paid even better ($240,000 a year) by Glendale. (On a side note, why is a small city paying its city manager more than the governor of California?) I'm sure Mr. Ochoa also received generous perks, such as a car allowance, in addition to his salary. The upshot is that he had the financial wherewithal to make larger payments when he was still Monrovia's city manager, and he certainly has the means to cover the "measly" $75,000 balance he will have left after selling his house. If he doesn't, it means that he has been a spendthrift and should not be rewarded for his profligate behavior. To put it bluntly, there is simply no justification for any additional accommodation. Ochoa may have to "bite the bullet" by cashing in some of his investments or borrowing, but it is his responsibility. The city owes him nothing, and certainly Monrovia's taxpayers owe him even less.
Kate K. July 08, 2012 at 10:00 PM
Apart from our outrage (years ago and now) over the brass of Mr. Ochoa and the cronyism of our city, WHAT CAN WE DO NOW TO PREVENT THIS FROM BEING DONE AGAIN? Is there some/any municipal initiative process or similar whereby we can enact a statute forbidding any involvement by the city (Council, mgmt, staff, etc.) in any way in an employee's or elected official's financial matters ?


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