Executive Director's Column

How Do You Borrow $1 million?

Back in July when the many pieces of the Bernardo Mountain purchase were still not fitting together after three discouraging years of effort we received some good news. An application the River Park had made for $1 million through the Caltrans Environmental Enhancement and Mitigation Program (EEMP) was approved by the California Transportation Commission. It was one of a number of efforts that had to be successful to make the purchase of Bernardo Mountain feasible and we were very happy. The only problem was that escrow closing was set for September 1st and despite intense negotiations, the property owner had insisted on a $200,000 penalty for each 30-day extension. We knew that, under the best of circumstances, the State would be unlikely to process the $1 million dollar check in time for the September deadline. The extended budget debate in the State legislature eliminated any chance of getting our grant fast-tracked to meet the escrow deadline. So, not a problem, right? After all, we have a signed, sealed and sure-to-be-delivered $1 million dollars which should make it easy to get a short-term loan to close escrow on September first.

Well, maybe not. After inquiries at three large banks (need big money? Go to a big bank, obviously) with representatives that had received prior contacts from community leaders to support the River Park, I found that it was not that easy to borrow $1 million even if you could show that you were guaranteed to be able to pay off the loan. I spent hours in the offices of various loan officers optimistically holding my $1 million grant approval papers at the ready, certain that at any minute it would dawn on one of these bankers that this was a sure thing. Unfortunately it was not happening. “We’ll schedule this for the first available meeting of the loan committee,” they said. Or, “As soon as Fred in research gets back from vacation I’ll send this up to him in our Los Angeles office for review.” I wasn’t getting through. Even though I kept pointing out that the money was needed to close escrow on September 1st, they kept pointing out that bank procedures had to be followed, escrow deadline or not.

At that point, Chris Khoury, former president of the San Dieguito River Valley Conservancy, mentioned to me that he had run into a bank officer at the Temecula Valley Bank in Escondido who seemed to be a nice fellow and that he would give him a call. Grateful for a fresh contact after my unsuccessful experiences, I nevertheless couldn’t help but think, “Well, that sounds like a pretty small bank, I wonder if they have that much cash available.” The next day I walked into the modest offices of the Temecula Valley Bank in Escondido to be greeted by Michael Peters, the Executive Vice President who graciously took me to his office, gave me coffee and cookies and said “Tell me what you need.” I gave my pitch and spread my dog-eared documents on his desk and sat back expecting another lesson in necessary bank procedures and committee meetings. Instead, he looked things over for a few minutes, smiled and said, “This looks good to me, more coffee?” Stunned, I responded, “What do you mean, don’t we have to go through a procedure?” “Well,” he said, “There are only two people that have to approve a loan here and I’m one of them. I should be able to get you an answer and do the paperwork in plenty of time to make your escrow deadline.” And he did. On reasonable terms with amazingly minimal paperwork processed by competent and friendly bank employees who kept giving me coffee and cookies.

Michael explained to me that the Temecula Valley Bank believed in supporting the communities in which they do business as their motto states, “Hometown Banking in a Changing World.” I’m convinced. When you gaze across the San Dieguito River Valley and enjoy the view of Bernardo Mountain that will always remain in its natural state, remember; it is the hometown organizations that make things happen. Thank you Temecula Valley Bank.

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