HSL graded "F": More from the Humberto files

• Tucson business: Perception vs. reality. I’ve been struck by Lopez’s repeated references to a MarketWatch survey of business climates that ranked Tucson 95th out of 101 U.S. cities. In an interview Friday, he insisted his concern is the perception that Tucson has a bad business climate. “This is about taking back the city, changing the perception that we’re anti-business,” he said.

On the one hand, I found that strange because a recall seems like a big step to take to change a perception. On the other hand, look at Sunday’s stories by Rhonda Bodfield. Why not call it a reality that Tucson is a bad city to do business in, especially for small, start-up businesses?

• HSL graded F. In my research I checked out HSL Properties’ record with the local Better Business Bureau. The company’s grade is shocking: F. But the explanation of that grade made it seem a little less serious. Around 2007, the BBB had received seven complaints about HSL. Three of them were resolved, but four went unanswered. Not answering a complaint in any way is a sin at the BBB. That’s what led to the F grade.

• “This has to be off the record.” I wish a few more people with interesting Lopez stories would speak to me ON the record. For some reason, the best stories were preceded by that loathsome phrase, “off the record.”

• Humberto’s well-worn story. Lopez’s life story is an inspiring and attractive one — until you hear it five or six times over. We at the Star have profiled Lopez at least four times over the years, often in great depth. The Citizen did it at least once. I also heard Lopez give his Cliff’s Notes life story on the Jon Justice show last week.

It goes like this: Born in Nogales, Ariz. Raised largely in Sonora. Landed in poverty and on welfare. Worked from age 11 on. Decided he wanted to be wealthy. Went to the U of A. Moved to L.A. to be an accountant. Started investing in real estate on the side. Set up a business and turned to real estate full time. Moved to Tucson. Kept going.

It is a great story — and better yet true, as far as I know. Of course, there have been plenty of blemishes along the way. HSL filed for bankruptcy as an outgrowth of the savings and loan crisis. Lopez readily acknowledges this, but what’s less known is that he also benefited from the practices that led to the savings and loan crisis. The Resolution Trust Corp. sued Pima Savings and Loan’s board largely over loans to Lopez. Here’s what a 1993 Star story said:

RTC attorneys question five loans, totaling $14.45 million, that Pima made between 1983 and 1987 to partnerships headed by Tucson investor Humberto S. Lopez.

The funds were designated for buying and developing apartment projects, and for buying two parcels of land Pima held in its real estate owned portfolio.

RTC attorneys cite 16 problems among the transactions. Leading the list is an allegation that the defendants failed to obtain signed loan applications for any of the transactions.

The suit alleges that Pima’s directors funded a $4.7 million loan to build the Mission Sierra Apartments before an appraisal was obtained.

The Mission Sierra project is the subject of several other allegations, including Pima’s failure to obtain current personal financial statements about the guarantors.

“Instead, defendants used uncertified and self-prepared stale financial statements prior to approving the HSL La Mission (Mission Sierra) loan,” the suit says, adding that Pima also failed to verify the information or perform credit checks.

• No-BID properties. I mentioned in Sunday’s story that Lopez was one of three property owners who requested to be exempted from the downtown Business Improvement District’s assessments. The other two: Diamond Ventures, which then owned La Placita, and Allan Norville, who then owned and still owns some empty acres west of the Hotel Arizona. They asked not to have their properties included in the map of the district, later approved by the City Council, thereby exempting themselves from assessments.

• Bills to pay. Lopez seemed sensitive when I mentioned the idea that his company can be slow to pay its bills. He said his company always pays its bills on time, the first of the month. But one local elevator mechanic, Ed Louria, told me of repeated instances in which he had to collect overdue bills from HSL before doing requested work at its hotel properties.

I also spoke with Robert Brown, owner of a local business called Carpet Savers. He got into a legal tangle with Lopez when he was cleaning the then-named Broadway Holiday Inn’s carpets in 1998 or so. There was a dispute about billing as his company cleaned, floor-to-floor. Brown thought he was owed about $5,000 and ended up suing in small claims court. He said he offered to settle for $2,500, but HSL refused. They then appealed a judgment and finally ended up paying the $5,000.

Not sure if this is more of a pattern with HSL than with other companies its size. But it does seem there are a good many local vendors who have gripes about HSL’s bill payment.

• Humberto’s motivo. I asked Mr. Lopez why he hadn’t hired somebody to take the lead on this campaign instead of doing it himself. He told me about his personal experience of the recall campaign.

“You think I’m having fun with this? I’m staying up at night. I can’t sleep.
This is not something that I need. I’m doing it for the community.”

The campaign, he said “needed some leadership … I was willing to be the one to take the leadership.”

“This is not a vendetta. It’s not vindictive. I don’t need to do any of this. I’m at a stage of my life where I could enjoy the fruits of my labor.”

If you’re questioning the relevance of all this info on Lopez — well, we’re talking politics here. This is about the man who is inspiring and spearheading the recall movement. His motive, I think, is an important area of inquiry. It may be just what he’s saying. But, as with anyone, it may not be. And there are plenty of alternative theories to be explored.