City Attorney Mike Aguirre’s office resumed the flow of funds belonging to the Little Italy Association’s Business Improvement District (BID) the last week in March. The funds were held as part of a review process in which the city has 30 days to approve the contract establishing the validity of the BID, Aguirre said.
The city initially held approximately $24,000 in Little Italy BID funds and would eventually withhold another $36,000, according to Tom Di Zinno, Little Italy Association secretary. The inconvenience could have jeopardized scheduled events funded by Little Italy’s BID, he said.
Aguirre and the Little Italy Association met several times regarding an alleged violation of the contract between the city, the association and its contracted administrator, New City America Inc., Di Zinno said.
The issue centered around New City America President Marco Li Mandri, who also held a title as honorary chairman of the Little Italy Association, he said. Li Mandri asserted that the title was strictly honorary and he did not vote or bring motions to the board.
However, Aguirre considered the contract invalid because Li Mandri was serving, in title, as president of both New City America and the Little Italy Association. This conflict violated California Law and the City Charter, Aguirre said.
“This is all to safeguard,” Aguirre said. “Every dollar that is provided by the businesses in Little Italy we want to make sure that dollar actually gets back into the community “” and that’s part of our responsibility.”
The Little Italy Association voted 27-0 in favor of removing Li Mandri’s honorary title March 27, Di Zinno said.
Although New City America and Little Italy Association still have a contract, the board will vote whether or not to renew the contract the first Tuesday in April, he continued.
Li Mandri defended himself and said he was personally attacked without legitimate reason.
“The City of San Diego and the city attorney dragged my name through the mud and didn’t apologize,” Li Mandri said. “They just made accusations and implications of criminality, when there was none.”
The Little Italy Association became aware the City Attorney’s Office had withheld the funds when they received a call on Feb. 27 from Scott Kessler of the Economic Development Office, who didn’t provide a reason, Di Zinno said.
The Little Italy Association held a press conference March 15 and released a statement, “City Attorney Holding BID Funds Hostage,” depicting a caricature of Aguirre wearing a bandit’s mask.
The night before the press conference, the City Attorney’s Office released a statement stating that the City of San Diego was reviewing invoices and documents of the Little Italy Association because it was aware of a search warrant served by local and federal law enforcement in October 2006 on the offices of New City America Inc.
The warrant in question was served on a former client of New City America, Li Mandri said.
The warrant extended to offices of New City America Inc. because it held records concerning the former client, Li Mandri said.
The warrant had nothing to do with Li Mandri personally or the Little Italy Association, he said.
“It’s like serving Cox cable [a warrant] and saying HBO must be guilty of something.” Di Zinno said.
Although he has no argument with the final outcome of the agreement, Di Zinno said that he questions the process because it cost everyone time and money “” approximately $10,000 in legal fees for the association.
The Little Italy Association is a nonprofit organization established in 1996 to oversee the renovation improvements of the historic downtown area.
The Little Italy Business Improvement District generates funds paid by the business owner as part of its business licenses with the city, Di Zinno said.
The BID funds total more than $100,000 annually. All Little Italy Association meetings are open to the public. n