FINAL REPORT - San Bernardino Superior Court

Section 4: SCLA Hangar Development
Table 4.2 is a listing of loans as provided by the City Manager’s Office in response to a request
for all loans made to KND Affiliates relating to the hangar project. Table 4.3, which contradicts
Table 4.2, is based on a December 18, 2007 staff report to the SCLAA Board, which summarized
the SCLAA’s lending to KND. It is unclear why the City has not provided all loan
documentation, as requested.
The City’s inability to provide a clear accounting of the loans made to KND is evidence that
there were few, if any, controls established for this project even after CBS Aviation
Development was removed. The City had no staff actively managing this project. Rather, the
City was completely reliant on outside contractors to manage this major capital project.
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Harvey M. Rose Associates, LLC