SAN FERNANDO CAFE PLAN REVEALS TOWN TIES.

Byline: Dominic Berbeo Staff Writer

SAN FERNANDO - San Fernando city officials have entered into negotiations to lend or grant up to $125,000 to finance the first cultural cafe, bookstore and art space in the northeast San Fernando Valley.

The decision has come under criticism because city lobbyist James Acevedo owns the building on San Fernando Road that could house the cultural center. It also has exposed a series of political and financial connections in this small city, which critics assert have given some people unfair advantages in winning city contracts.

The San Fernando Redevelopment Agency voted 3-1 with one abstention Oct. 17 to authorize the city to allocate up to $125,000 to renovate Acevedo's building and start the business. The money could be granted or provided in a low-interest loan.

A final proposal from the proprietors and city staff is expected this week.

Acevedo, a land developer and political consultant, has worked on the campaigns for many local and state politicians in the Northeast Valley.

``We should open up the bidding process to allow other proposals to compete for this money,'' said City Councilwoman Cindy Montanez, who abstained from voting on the item. ``There should be competition, no matter who the applicants are.''

The cafe would be called Tia Chucha's Cafe Cultural, and plans include a book shop, art space, computer lab and outdoor stage.

In June, the city prepared a similar offer of $125,000 to lure Espresso Mi Cultura, a Hollywood cafe, into opening a second site in San Fernando to include an art gallery, bookstore and theater. The deal failed when Espresso said it needed $170,000, and the council voted against a motion by Montanez to set up a committee to explore ways of making up the difference.

Acevedo denied that favoritism played a role in the Tia Chucha talks, saying he was not involved in the city decision. He said the goal is to help provide the community with a cultural center.

``It does look bad, but what's more important than these relationships is the benefit to the community,'' he said. ``I don't need the money. In fact, I loved the Espresso idea and it's ridiculous they rejected it when they were only about $30,000 away from a deal.''

Mayor Silverio Robledo, who argued at the time that the $170,000 in assistance being sought by Espresso was too high, said there was no special treatment given to the Tia Chucha proposal or Acevedo.

``Both projects were given the same chance at this money,'' Robledo said. ``It doesn't matter who gets the contract, as long as it's a strong, legitimate and reasonable proposal.''

The funds would come from the city's Redevelopment Agency, created to spark growth, including refurbishing old buildings for use by new businesses.

Councilman Richard Ramos defended the Tia Chucha proposal, saying the decision was purely economical.

``The fact that Acevedo owns the building had nothing to do with it,'' Ramos said. ``It is a better and more affordable proposal, and we might end up choosing a different location, anyway.''

Councilman Jose Hernandez voted against the proposal after questioning whose property the redevelopment would take place on.

``It looks like favoritism to me,'' Hernandez said. ``Why did they oppose the last offer, unless they knew they had this new proposaal on the back burner?''

Voting in favor were Robledo, Ramos and Councilwoman Beverly Di Tomaso.

While the Tia Chucha project involves renowned Chicano author Luis Rodriguez, the Espresso owners have years of experience running a cafe/cultural center. Also, the Espresso proposal included a 70-seat indoor theater for live performances and movies.

In both situations, the Redevelopment Agency, which is made up of the five City Council members, was split 3-2, with Hernandez and Montanez supporting Espresso and Robledo, Ramos and Di Tomaso in favor of Tia Chucha.

Other connections include:

--Enrique Sanchez, one of the proposed co-owners of Tia Chucha, also is a project manager for Acevedo's Grapevine Development Co.

--In August, the city granted Acevedo, who runs Grapevine, exclusive development rights for a square block of land on San Fernando Road adjacent to the building targeted for Tia Chucha.

--Besides being a paid lobbyist for the city of San Fernando, Acevedo is also a political consultant who has run campaigns for elected city and state officials, including the entire San Fernando City Council, and Assemblyman Tony Cardenas, D-Van Nuys.

--Cardenas' sister Maria Trinidad Rodriguez and her husband, Luis Rodriguez, are two would-be owners of Tia Chucha's Cafe, according to city records.

The assemblyman wrote a letter of support and sent a member of his staff, Dalila Perez, to urge the city to approve the deal, but said the decision was not personal.