The letter states an investigation by Richards Watson & Gershon shows Rosansky’s business dealings are not at odds with his role as mayor. Rehab home activists have accused the mayor of having a financial interest in rehab homes, which they feel are over-concentrated in certain areas of Newport Beach.
“Mr. Rosansky can claim no vindication in this report,” rehab home activist Bob Rush said. “As it apparently shows, he knowingly entered into a contract with a rehab business operator in 2004 and was compensated for it while voting on it. In the months that followed group home ordinances caused over-concentration of rehab homes in Newport beach and mostly in his own district.”
Area residents say Balboa Peninsula is infested with rehab homes because of lax city ordinances. The homes cause public nuisances such as excess trash, traffic and noise, activists say.
“Residents should consider whether Rosansky is a leader who will truly put the community needs above his own now that the city is revising group home ordinances to resolve the over-concentration dilemma,” Rush said. He added that he believes the letter shows Rosansky had a financial interest in a rehabilitation business up until earlier this year.
The investigation revealed that Rosansky provided property management services to his friend, Karl Princic, until April 2007, according to the letter. The mayor helped Princic broker a deal to purchase a duplex on the 200 block of Cedar Street in the late 1990s. Rosansky later helped Princic lease in 1999 on one unit of the duplex to a man the mayor later learned operated a group home in Costa Mesa.
