Dear Culver City: Former Councilman strains credibility with Jubilo

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By Francine Graff

No matter how Thomas Small spins the numbers, they just don’t add up. This isn't
speculation from political opponents. These concerns come directly from the City's
financial analysis.

In its March 10, 2025 report, Keyser Marston & Associates (KMA), the City's financial consultant, examined the proposed $20 million City loan to the project.

The conclusion was troubling: Under KMA's assumptions, the loan would not be fully repaid within 55 years (the terms of the loan). Worse, the outstanding balance, including accumulated interest, was projected to reach about $45 million by the end of that time.

City staff went even further. Their analysis concluded: "The City will never see a payment on this loan."

Let that sink in. The City committed $20 million in taxpayer-backed financing (thanks to the Council vote of Puza, Fish and McMorrin) and by it’s own analysis, will never receive a repayment.

These aren't imaginary risks. They are documented concerns in the City's own report. The same report identified what would happen if there was a 10% increase in construction costs. City staff warned that CC taxpayers would be asked to cover that increase.

The report also projected first-year operating expenses of about $970,698, increasing by 3% annually. And the funding problems haven't gone away.

As if KMA had psychic and spooky abilities, in March of 2026, correspondence from Community Corporation of Santa Monica, (the private developer) to Culver City staff, identified a new funding gap ranging from $1.7 million to $4 million involving parking arrangements and construction-related expenses associated with the neighboring YMCA. Who is going to pay for this funding gap?

Mr. Small, taxpayers deserve a clear answer, not a fantasy story. How can you expect that the low-income residents who will be living in this facility will generate $10,000,000 in economic activity, or that $13,000,000 of homelessness project funding will suddenly no longer be needed? Its math like this that has put our city into it’s existing financial troubles.

There is also the project's dependence on federally funded rental assistance. Culver
City awarded 42 project-based housing vouchers, representing about $824,976 in
annual assistance over 20 years. If federal funding is reduced, interrupted or lost, the financial assumptions could be moot.

The financial questions surrounding Jubilo are serious enough on their own. But
Small's cozy history with another private developer also deserves scrutiny.
Public records show that Thomas Small served as CEO and later as a director of
Culver City Forward, a nonprofit founded and funded by Michael Hackman of Hackman Capital Partners. Small held the CEO position while serving on the Culver City Council.

Small received:
◦ 2019: $78,740 in compensation.
◦ 2020: $182,292 in compensation.
◦ 2021: $39,833 as a director.

That's a total of $300,865 over three years.

Hackman is a major commercial real estate investor with substantial property interests in Culver City. His political contributions in local elections have brought criticism from residents concerned about the influence of wealthy developers on city government.

In August 2019, a Hackman-related property matter involving a request for extended construction hours came before the City Council.

Attorney Les Greenberg alleged that Small voted in favor of the request without
disclosing his relationship with Hackman and his work with Culver City Forward.
Greenberg raised questions about whether Small should have disclosed the
relationship or recused himself.

It’s unclear if what the final ruling was, but residents are all still waiting for a transparent explanation. Mr. Small, we deserve more than your spin. City Staff warnings along with a substantial funding gap are not minor accounting details.

Lastly Mr. Small, if Jubilo was the fairy tale financial windfall you expect it to be, why couldn’t the developer secure it’s own funding?

The truth hurts and your attempts to rewrite the story deserve an Academy Award.

Francine Graff has lived in Culver City for 21 years