Editor: Westamerica made an announcement at the October 6, 2010 City Council meeting that they would keep the branch in Boyes Hot Springs (fka Banco de Sonoma) and the Glen Ellen branch open until at least February 2011. However, if these offices cannot demonstrate significant contributions to profits and prove that they are essential locations to the community they will almost certainly close.
Persons residing in The Springs and Glen Ellen area are urged to vote with your dollars and open deposit accounts, make applications for loans, deposit funds, and utilize the branches and services as many times as possible in the coming months. Recommend your friends and neighbors bank at these locations and be sure all your related family members and business accounts are moved over as well. Then as you shop and transact business in these areas be sure to urge every Springs and Glen Ellen business owner you come in contact with to move their business banking relationships over to these branches. Without meaningful transactions being conducted with significant volumes these facilities are doomed. Less bank branches means less credit and in turn lower economic prosperity for the heart of the Valley.
There are several groups including the City, county, The Springs Redevelopment Advisory Committee, local Sonoma Valley residents, business owners, and interest groups currently uniting to continue efforts to keep these facilities open and the Valley prosperous. Initiatives such as Banking consortiums and even formation of Economic Development ventures where banks agree to partner together and invest dollars into earmarked funds are being explored. If we can keep Westamerica intact and turn them into a leader I am confident the other banks like the “new kids on the block” – Union Bank, RaboBank, Bank of Marin and Chase – will join forces with familiar faces – Exchange Bank, Wells Fargo, Citibank, USBank and Sonoma Bank – to create an overwhelming redevelopment opportunity and keep Sonoma Valley vibrant.
Vote with your dollars. Support your local branches in your neighborhoods, and in turn they will support us. The failure of our Sonoma Valley Bank was a tragedy but with four new banks expected to be open in the Valley by year-end 2010 alone, there remains substantial opportunity for a renewed focus.
Ralph Hutchinson
Sonoma
City Council has an item 7B on the Agenda for Wednesday November 3rd all interested Citizens should be aware of and attend in support and express your support at the public comment forum. It is imperative the community get behind this attempt to keep the branch from closing and give Westamerica solid business reasons why NOT to close it by opening deposit accounts, and applying for loans the main business of a bank.
The agenda item is described as such: Discussion, consideration and possible action authorizing the Mayor to sign a follow-up letter to Westamerica Bancorporation in support of keeping the Banco de Sonoma branch open in the Springs and the Glen Ellen branch of Sonoma Valley Bank open in Glen Ellen, requested by Mayor
Barbose and Councilmember Brown
In Summary:
Mayor Barbose and Councilmember Brown have requested consideration of authorizing the Mayor
to sign a follow-up letter to Westamerica Bancorporation in support of keeping the Banco de Sonoma branch open in the Springs and the Glen Ellen branch of Sonoma Valley Bank open in Glen Ellen. The letter confirms the statement made by the Westamerica representative at the October 6, 2010 Council meeting regarding keeping the branches open until at least February 2011. The letter
is proposed to be co-signed by Supervisor Valerie Brown.
This is one visible example of the efforts of many supportive citizens behind this initiative to save the branches and get more redevelopment dollars working in The Springs region of The Valley.
The RAC (Springs Redevelopment Advisory Committee) has a meeting Thursday November 4th at 7:00pm at The Grange Hall 18627 Sonoma Hwy in The Springs. The topic is expected to be discussed in this venue as well. Please attend and show your interest and express your views.
Initial interviews with constituents of the Latino community indicate the following issues concerns, and desires with life in The Springs. We are working to best understand all the constituents, (consumer and commercial), to work within existing County Plans, and create lendable projects for the banks to get excited about.
Many workers and residents are Undocumented thus openings accounts, applying for loan, or wiring money proves impossible. Banks have a host of regulations requiring multiple forms of ID. However, Banks like Wells Fargo are in the forefront using Mexican Matricular ID etc. These solutions are being researched along with other remittance programs including partnering with trusted Mexican Banks and Domestic Banks.
The Latino community prefers ownership and given costs of stand alone homes and limited space it sounds like multi-family condos might be a solution given ownership but also being close enough to each other to have a sense of community. Sweat equity plans might be a good alternative as well.
The Springs area needs a meeting hall or places to socialize where the Latino population feels safe and welcome. (Farmers Market Square, Plaza, Meeting Halls or Community Center?)
Education on how to run business, finances, own homes, etc. Small Business Loans. Transportation – good public transportation to City Center and Springs Center (includes sidewalks, etc.)
Appointments with Springs businesses are being arranged and Business Groups being contacted to ensure commercial ventures are also heard loud and clear.
City Council decided not to get involved at the Council Meeting 11-4-10. I believe “jurisdiction” was the primary argument but it still lives moving to the County and to the RAC committees.
Quotes from the cross town paper:
The Sonoma City Council, in its last full meeting with the outgoing membership configuration, declined to stick its official nose into the corporate business of Westamerica Bank.
City Council engaged in a predictably impassioned discussion over whether or not it should send a letter to Westamerica Bank urging the institution to preserve the two branch offices it inherited in the Valley from Sonoma Valley Bank.
The two offices – one in Glen Ellen and one in the Springs (called Banco de Sonoma) were taken over by Westamerica when it assume the assets of Sonoma Valley Bank following its forced closure.
A grassroots campaign has surfaced among branch bank customers to keep the two offices open and Westamerica officials have announced they will do so at least through February. But hours have already been cut substantially and the two branches are now open only between noon and 4 p.m. Monday through Thursday, and noon to 6 on Friday, with no Saturday hours.
Councilmember Laurie Gallian argued that the hours aren’t practical to service many Springs working customers who don’t get off from work in time to bank during the new open hours. And Councilmember Ken Brown observed that the new hours seemed “like a pre-ordained move to make sure the darned things don’t work.”
But both councilmembers Aug Sebastiani and Joanne Sanders objected to having the city inject itself into a private business matter. Said Sebastiani, “I really think that this is silly. We’re asking a business that is not headquartered in Sonoma to manage its branches that are not in Sonoma.”
Added Sanders, “I just can’t believe we’re delving into this issue at all.”
Mayor Steve Barbose, acknowledging that he tended to agree and that therefore there weren’t enough votes, moved to table the proposal. But outgoing member Sebastiani has been a consistent and determined opponent of council consideration for what he considers items that aren’t legitimate city business. And during his four years in office, he has consistently been on the short end of votes over such issues. So, as one of his last acts on the council, he asked, “For sentimental reasons, I would appreciate a vote.”
So vote they did – 4-1 against the proposed letter – and for the only time, and as a gift affectionately given by his fellow members, Aug got to win one on an issue he holds dear.
While I understand and respect Sebastiani and Sanders position on jurisdiction (I feel the same way when the City passes resolutions on National Policy) but this is Sonoma Valley just over the edge of the City border. They just don’t understand the Community Reinvestment Act and how it governs Banks and that low-moderate income areas and specially designated Economic Development Zones are privaledged particularly in branch closings and the entire effected communities are impacted when banks are closed.
If they both would have done a little homework and read the letter and researched Community Reinvestment Act (CRA) they may have thought differently. And Barbose he was a signer on the draft letter sure seemed to tuck tail on this one.
People of our Valley need to realize the decision was already made perhaps before the failure but at least shortly after they acquired failed SVB to close the Springs and Glen Ellen Offices. The change in hours is as Councilman Brown says a contributing factor to amplify lack of lobby traffic so when the branch closure is publically announced they will have data showing dismal profits and volume.
Thats OK. The Grassroots effort doesn’t need City Council (we will gladly take the members who understand this issue) and in the end when we win and get $10’s of millions of dollars pumped into the Springs by a consortium of banks earmarking CRA dollars…we will remember the attack position and lack of support taken by some on the Council…who was with us, and who was against us.
We will move to the County and seek their support.
Let me explain the Community Reinvestment Act (CRA) that Federal Regulation that governs banks (Banco de Sonoma and the Westamerica assumption of our failed Sonoma Valley Bank) and is often challenged when banks merge or try to close branches. This is why The Springs branch is so important as it’s in a predominantly low-moderate income census tract area, Spanish Speaking region, and designated a County Redevelopment Area in 2007.
The Community Reinvestment Act (or CRA, Pub.L. 95-128, title VIII of the Housing and Community Development Act of 1977, 91 Stat. 1147, 12 U.S.C. Part 345 et seq.) is a United States federal law designed to encourage commercial banks and savings associations to meet the needs of borrowers in all segments of their communities, including low- and moderate-income neighborhoods. Congress passed the Act in 1977 to reduce discriminatory credit practices against low-income neighborhoods, a practice known as “redlining.”
The Act requires the appropriate federal financial supervisory agencies to encourage regulated financial institutions to meet the credit needs and banking services of the local communities in which they are chartered, consistent with safe and sound operation. To enforce the statute, federal regulatory agencies examine banking institutions for CRA compliance, and take this information into consideration when approving applications for new bank branches or for mergers or acquisitions.
Section 42 of the Federal Deposit Insurance Act as added by the Federal Deposit Insurance Corporation Improvement Act of 1991, and FDIC FIL 65-99 governs Westamerica. There are a whole host of processes they must go through when closing a branch, but often if appealed by local communities (this is where the County, City and concerned citizens and businesses come in) the branch closing can be stopped by Fed Order if the appeal can prove there are no other similar services offered by any other bank in the area and that the community would be harmed. Bank branches are forced to remain open. There are other instances where groups agree to let the banks close in exchange for earmarked dollar commitments of loans to benefit specific community initiatives or underserved persons/businesses in the service area. Gramm-Leach-Bliley actually had a provision called “The Sunshine Provision” where these “deals” had to be transparent and disclosed when a bank made a deal with a community group to provide services as part of a closing.
I remain hopeful that Westamerica will agree to keep the branch open and emerge as a community leader bank like I know Mr. Payne Chairman of the Company is capable of doing given his prior track record as I read in his Public Evaluation report under CRA. But unless the Council, County and all the other interested citizens, businesses, non-profits, and community groups get involved these branches are tracking to close early in 2011. We can appeal and try to negotiate other settlements, we can let Westamerica go and close the branched and hope another bank takes its place but the latter strategies are less desirable and more difficult.
I urge the community and Governmental Leaders to act and not put your heads in the sand. The issue will not go away. And with the exception of a couple Council members, the rest looked like deer in the headlights paralyzed at this week’s meeting, vindictive from prior defeats, and self-centered by tucking tail and remaining silent.
Business interests and County Planning officials are most interested in providing a “Hub” or a central business district to “anchor” the district. This is consistent like when building a retail strip center or a Shopping Mall one needs the foundation laid first then the tertiary areas can branch from there.
The most likely area for this “Hub” is the area surrounding The Fairmont Resort (fka Sonoma Mission Inn). The vision is to have a “courtyard” or “plaza” of sorts to host farmers markets, music and arts festivals, and a nice “Walk-street” atmosphere on the order of Sonoma Plaza without the City Hall and grass infield I suspect but these are just ideas.
The “Hub” should really have a Bank Financial Center as the heart of the area as well. I for one would like to see Westamerica keep their Springs Branch open and relocate it to this hub area. But if we are unsuccessful with Westamerica I would solicit another Bank to take this spot, perhaps even start a new bank from the ground up is not out of the realm of possibility but I digress LOL.
The other business would be retail shops suitable for “strolling” shoppers like boutique shops, Ethnic Latino or cultural shops, tourist and resident oriented places, coffee shops, quaint restaurants with outdoor cafe style seating, Taqueria, etc. Again I am just brainstorming here but from my read on the County Plans this is the vision I am getting.
Other areas to service the other retail shops, markets, offices, parking, light industrial/contractors will then blossom from there. In fact there may be alternative “landing zones” or mini-hubs along the stretch of area known as The Springs. This will provide infrastructure to the already existing businesses like sidewalks for the pedestrian residents, or gas lamps.
One of the Latino concerns expressed to me is more Social Meeting areas. The Hub could have an aspect to that but also a “Community Center” multi-purpose center might be an alternative, Ethnic clubs/meeting Halls or other may also work.
Housing is also an issue, we are exploring suitable smaller clusters of multi-family owner “condo” type developments and other housing alternatives in the tertiary areas jetting off The Hub and Main Street areas of Sonoma Highway.
I envision a percentage of the land subsidized by Public Funds and leased to commercial and residential developers at more affordable prices to keep costs and rents down. This concept is common in places like Palm Springs, and Phoenix leasing from Indian Reservations, and areas adjacent to National Forestry lands.
So you see all these projects can be accomplished. I see 2-5 significant parts of the plan as possible in the next 2-3 years. If this Hub and a couple more significant pieces of the puzzle can be financed through County funds, Subsidies, and Bank Consortium loans, I am confident this will prove to be the catalyst to get up and over the hump from whats already been done in the last few years visibly and certainly all the decade of Planning done behind the scenes by our County Officials before that.
Once we get over the hump The Springs can thrive as a Multi-Cultural center of economic activity, co-exist with all the citizens, groups, non-profits, and businesses and continue the redevelopment movement to spruce it up and make it back to its full potential it once was at the turn of the Century when The Sonoma Mission Inn attracted vacationers except our version will be anchored by residents and a real sense of community and certainly more economically and socially diverse. Its possible and I know many of The Valley residents share such a vision.
Conversations with Hotel Officials and a tour of The Hub area around The Fairmont Hotel (SMI) at Boyes Blvd at Sonoma Hwy reveal a real need for common space, parks and greenspace. The idea of a “plaza” like area with stores suitable for strolling were discussed.
After meeting with Hotel officials, I took a stroll around the Church Mouse, Post Office, Uncle Patty’s, and the adjacent Gas Station.
One thing I was shocked by was the condition the former “Uncle Patty’s” restaurant building has fallen to. Not only was it in poor condition and closed but homeless and addicts are infesting the premises through what looks like holes torn in the walls and doors taken off the hinges. This not only was unsightly but downright DANGEROUS looking. There were mattresses and furniture inside as if inhabited and frankly looks like a “crackhouse” I see on television from an inner-city blighted area back east. This is NOT my Sonoma.
Although Sherriff do patrol the area it is no match for the underworld of activity that scurries away at first sign of light from a passing Law Enforcement Officer. I observed one such pass-by of the County Sherriff while I was there today.
My first thought was, the owner has to be liable for boarding and securing an abandoned building that created a safety threat as I witnessed. The building certainly looks condemned and appears to me to need razed. I would think County ordinance, zoning, safety concerns, crime location, threat, unsafe and unsound structure suitable for condemnation…something would trigger to ensure action was taken by the Owner.
The recent set-back of the affordable housing project between Charter School and the Trailer Park on Sonoma Highway illustrates the need for such housing and the difficulty in attracting projects suitable for the area. This is said to be one of the only open spaces remaining.
There may be some opportunity to recover development of the site by promoting a medical facility of sorts in the location also a welcomed service in The Springs.
Updates expected at the Springs Community Alliance meeting 9:00am at La Luz.
The Springs Community Alliance (in the wake of the RAC open forum presentation of the concept of writing a letter to David Payne Chairman and CEO of Westamerica urging the Banco de Sonoma branch stay open and scheduled agenda item for December meeting), voted unanimously to send a letter on their letterhead and urge their constituents to also voice their disgust with the new reduced hours, the shake-up of bi-lingual staff, and overall feeling of abandonment and reduced dedication to services. No less than 12-15 “Springs” group leaders were present today at the meeting. Lively discussion ensued for about 45 minutes of the 90 minute meeting on this topic.
La Luz informed the committee that they were contacted regarding a Federal sponsored study led by a San Diego University taking the pulse of the California Latino community on a host of issues. These survey results might serve Westamerica well to as it appears they are quite disconnected from the Springs Latino community and the Springs business owners with regard to the hours rollback. I know they will certainly bode well for the Springs Grass Roots effort to keep the Banco de Sonoma open.
Discussions with La Luz officials revealed additional insite into the banking needs of the Latino Springs community and they include primarily: deposit accounts, and merchant credit cars processing services for the businesses. Business-owners also need merchant banking services, deposit accounts and cash/retail support.
Lending needs for Latino consumers include affordable housing. Springs businesses continue to need small business lending for a host os items including operating/working capital lines, and equipment financing.
When the issue of undocumented residents came up solutions such as the Mexican ID aka the “Matricular” is widely accepted at the former Banco de Sonoma and other heavily supportive banks like Wells Fargo an industry leader with use of the Matricular and creative identification methods. Thus opening deposit accounts, and conducting wire/money remittance is not an issue and should continue to provide Westamerica a source of fee income and deposits.
One other comment was made many people use the Banco de Sonoma ATM even those out of network as they shop at the local markets, Dollar Tree store, etc. and the community benefits greatly from the improvements to that Shopping Center where the bank is located. All this also means additional fee income to the bank.