At a recent city council meeting, Mayor Jung announced the postponement of a lease amendment for city-owned property at 120-140 East Santa Fe Avenue, originally hidden in the consent calendar as item seven. The decision to continue the item to July 15 was made at the request of city staff, who sought further clarification on specific language within the agreement.

The lease amendment raises questions particularly due to Section 10, which allows the landlord to authorize and consent to the assignment of the lease to any entity controlled by Tony, George, or Salma Bushala.

Unpacking Sublease Protocols 

Typically, public or commercial subleases require explicit approval from the city council and undergo a public review process. If a lease is being resold for private profit, the city may opt to renegotiate rent or review plans. Moreover, the city retains the right to cancel the lease or mandate competitive bidding rather than permitting a back-door transfer.

The Bushala Lease Mechanics

Critics argue that the Bushalas may circumvent these protocols, as they can transfer the lease without council approval. This raises significant concerns about transparency; the potential for creating shell companies might obscure ownership and limit public oversight.

Such arrangements could enable the Bushalas to sell the lease to another entity, charging higher rates without any improvements or maintenance on the property—commonly referred to as speculative flipping. Typically, if a tenant is leasing space at a higher rate, the city would renegotiate terms, especially given that other companies are often willing to pay more. Instead of enhancing the property for the benefit of Fullerton, there’s a risk that the Bushalas could hold onto the lease at a low price while profiting from higher rental rates.

Why This Matters

This situation raises significant concerns regarding transparency and accountability, especially considering the Bushalas’ status as political donors. With the city facing an ongoing financial deficit, the public sees no financial benefits from this arrangement, raising questions about the long-term implications of relinquishing control over valuable land. In the end, it is the public that may face the repercussions of this lack of oversight.

What can you do to stop this?

This item will be on the City Council agenda for July 15. You can speak on the item in person at 303 W Commonwealth Ave or via Zoom at http://www.zoom.us/join.

Meeting ID: 160 256 5242
Telephone Option: 1-669-254-5252

The meeting starts at 5:30 PM. Each speaker has a time limit of 3 minutes, and all comments will be included in the permanent record. You do not need to provide your name to register; you may simply state the district you live in. Please note that speakers cannot yield their time to others.

The public is encouraged to send correspondence to the City Council regarding agenda items by emailing CouncilMembers@cityoffullerton.com with the subject line “CITY COUNCIL MEETING CORRESPONDENCE – ITEM #” (please insert the relevant item number) or “CITY COUNCIL MEETING CORRESPONDENCE – NON-AGENDA ITEM.” All correspondence received will become part of the official record of the meeting and will be posted online along with the supplemental materials.

If you have any questions, please contact the City Clerk’s Office at cityclerksoffice@cityoffullerton.com or (714) 738-6350.

Below is a list from the Orange County Clerk listing all properties owned by Bushala in Fullerton.

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