Former San Benito County Supervisor Richard Scagliotti sits before Judge Alan Hedegard Wednesday afternoon during his week-long trial. During his civil trial Friday, developer Richard Ferreira testified that former Supervisor Bob Cruz told him in 2002 he would support annexation of property into Hollister for a senior housing project in exchange for $1,000 a unit on the 170-unit proposal. Scagliotti and Cruz both sat on a regional land annexation board at the same time.
Developer Richard Ferreira testified in a civil case Friday that former Supervisor Bob Cruz told him in 2002 he would support annexation of property into Hollister for a senior housing project in exchange for $1,000 a unit on the 170-unit proposal.
Friday's testimony in a civil case against former Supervisor Richard Scagliotti and the board of supervisors focused on a conversation Ferreira alleged he had with Cruz in the spring of 2002 over a 170-unit senior housing project, Ferreira confirmed to the Free Lance on Monday.
Ferreira on Monday recited the testimony he gave under oath and said Cruz had told him if the developer wanted his support that Cruz, in turn, wanted "$1,000 a unit" for use at his "discretion." Ferreira said he rejected Cruz's offer and told the former supervisor his project was strong enough on its own for approval.
Ferreira said he perceived it as a request for an "under-the-table deal."
"That's the way we took it," he said Monday.
Ferreira in 2002 needed about 16 of the project's 24 acres annexed into Hollister near Hazel Hawkins Memorial Hospital and he had to go through the San Benito County Local Agency Formation Commission. Cruz at the time was a member of the panel in his capacity as a supervisor.
Michael Serverian, the attorney representing Scagliotti and the board in the case, was present during Friday's testimony and had the following to say:
"It's very unusual that allegations as serious as these would only come to light six years later," said the attorney, who declined to comment further.
A Free Lance reporter left a phone message with Cruz requesting comment and describing the allegation that he solicited $1,000 a unit on the 170-unit development. Cruz responded after the phone call with the following e-mail:
"Your (phone) message stated that Richard Ferreira, a developer, said I agreed to negotiate a reimbursement regarding a proposed development he was involved in. That stated (sic) is unfounded. The city at that time, was not able to provide sewer services to the development. When I told Mr. Ferreira this, he responded, 'that's not my problem.' The discussion ended."
Cruz did not return follow-up e-mail and phone messages asking for comment.
The Free Lance has requested the transcript from a court reporter for that portion of the five-day trial in which the testimony came out.
Ferreira was called to testify in the civil case stemming from the lawsuit orchestrated by attorney Mike Pekin and filed in 2003 by the anonymous group Los Valientes. It has been revised several times since then and now is filed with Pekin's son, Patrick, as the petitioner. The suit alleges Scagliotti used his position to gain financially as a local developer.
After Pekin was done questioning Ferreira on Friday, Serverian did not have an opportunity to cross-examine the witness at the trial heard by Judge Alan Hedegard because the local developer had a time constraint going into the testimony and had to leave when Pekin was finished questioning him.
The case's proceedings were put off until May 12, said Pekin, who declined to comment further on Friday's development.
Ferreira on Monday said he stands by his testimony.
"I was subpoenaed to court. I believe in the justice system," he said. "I'm not going to perjure myself. I told the truth."
Pekin in court contended the testimony was relevant because Scagliotti also was on LAFCO at the same time. The panel ultimately rejected a portion of the annexation - and the project never happened - while contending the city did not have the services to support it.
District Attorney Candice Hooper said Monday she had heard rumors about the court testimony and that she had no further information or comments on it.
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