15-1204_SOUTH ORANGE COUNTY COMMUNITY THEATER_Correspondence - Worthington, ClintDecember 4, 2015
Keith Till
Acting City Manager, City of San Juan Capistrano
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Re: Lease on South Orange County Community Theatre, a California Non. Profit
Corporation CITY C� --
31776 EI Camino Real
San Juan Capistrano, Ca. 92675
Dear Mr. Till,
In reference to the above mentioned lease that expired on October 7, 2015, there are four
causes of action with this licensee that need your immediate attention. The licensee, Tom
Scott appears to have violated four areas of this lease.
The first cause is the subletting of this taxpayer owned City property to Capistrano
Forward. Capistrano Forward is registered and headquartered to Tom Scott at the above
address. I have attached a copy of the domain registration indicating that the place of
business and address of Capistranoforward.com at the above address since at least
January 2015.
This is in direct violation of Section 10 of the license agreement which reads in part:
"No Assignments
Licensee shall not transfer, encumber, assign or hypothecate .... nor sublet all or any
part of the premises and any improvements."
The license also states: "The licensee currently utilizes the building structure for the
purpose of operating a theatre/playhouse for the performing arts."
Mr. Scott made no mention of the property being sublet to Capistrano Forward at a recent
City Council meeting where he was looking to extend the license agreement.
The second cause of action that appears to have been violated is the political use of the
taxpayer owned City property. I have attached the "About" section of Capistrano
forward from Capistranoforward.com which is political in its description and Capistrano
Forward has also paid for inserts into the Capistrano Dispatch newspaper for distribution.
This is in direct violation of the license agreement, Section 2 which states"
V. "Licensee shall not use the building structure or City facilities and
grounds in connection with any political or religious activity."
Again, it appears that Mr. Scott has violated the terms of the license agreement.
On December 3, 2015 I requested to review the Non Profit tax return and the attendance
records for South Orange County Community Theatre under the California Public
Records Act as required in the License Agreement. These documents were not available
The Deputy Clerk stated that Cindy Russell is the one who would know where the
documents were. Ninety minutes later I again appeared at the City Clerks office and they
were again unable to provide the documents.
This leads to the third cause of action. The license agreement reads in part:
iii. "Annual attendance records from September 1s'to August 31'` are due
within 30 days."
iv. "Copy of most recent annual tax returns."
Neither one of these items were available for review, despite requesting them twice. It
appears that Mr. Scott has violated this term of the license agreement to provide
documents. A written request has since been made, at which time I am sure the
documents will magically be produced.
The fourth cause of action is that this taxpayer owned City property has been used for
political purposes and appears to have been illegally sublet. With the extreme minimal
amount of rent that is being charged for this taxpayer owned property, unless the City of
San Juan Capistrano takes immediate action, this will constitute a gift of public funds
for real property that was used for political purposes. With the City now on notice. I am
quite sure the City is aware of the ramifications of these causes of actions. In addition, it
appears the IRS could remove the Non Profit status of South Orange County Community
Theatre as political activity is not approved for a Non Profit by the Internal Revenue
Service.
I trust that you will take immediate action to resolve the four causes of action. Should
this not occur, I will have no alternative but to take any and all legal action deemed
necessary to protect the public interest in the property.
Sincerely,
Clinton R. Worthington
(949)292-7491
(My address has changed, and is not for public viewing)
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ABOUT
Capistrano Forward is a group of residents concerned about the direction of
our community. Recent misinformation and questionable decisions from our
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