City Controller To Audit
Treasure Island Funds

Treasure Island Development Authority executive director Tony Hall charges smokescreen.
Photo(s) by Luke Thomas

Thursday, September 22, 2005

Treasure Island bank accounts allegedly established without City Controller knowledge will be audited by the City Controller, the Treasure Island Development Authority (TIDA) board of directors voted Wednesday.

City Controller Ed Harrington raised the issue September 14 in a letter to TIDA executive Director Tony Hall, citing anonymous tip of $173,000 deposited earlier this year in accounts Harrington said he had no knowledge.

In response, Hall yesterday continued to maintain notice of accounts was posted in the city's online accounting log, and questioned Harrington's impartiality in conducting the audit.

Going further, Hall suggested TIDA board member Jesse Blout was the anonymous tipster. Blout denied the charge.

Two issues, viewed differently by Hall and the board, are involved in the confrontation.

Hall has exerted independence from city administration under authority TIDA holds as a state agency created separate from the San Francisco Redevelopment Agency.

Tony Hall confers with TIDA executive Director Frank Gallagher

Although a separate entity, TIDA board members are appointed by the mayor and the San Francisco Board of supervisors.

City administration and Hall's office are at odds over Treasure Island development plans, and developer responsibility.

Hall last week described the charge of fiscal mismanagement as a smokescreen to deflect attention from development plans. Hall pointed out he received Harrington's letter 30 minutes before the TIDA board was scheduled to hear Hall's review of that contractor.

The second perspective, held by city administration, focuses on city oversight of TIDA funds.

Harrington, the City Attorney, and the mayor's office all deny Hall's charge that they were given information adequate for city oversight.

TIDA board member Jared Blumenfeld suggested Hall's response diminishes trust needed from outside developers.

After policy is adopted, the board and its executive director should move collaboratively to implement that policy, Blumenfeld said.

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