Tag Archives: Discovery Builders

Discovery Builders, North Study Area, Seeno, Seeno property

Bad blood: Seeno family feuds over Bay Area real estate empire

[BenIndy contributor Nathalie Christian: Here’s a real gem from the article below: Concord’s negotiations with Seeno were halted not by “term-sheet specifics or the deal point, but rather [by] accusations that were made through editorial comment that were in the local papers.'” There it is, folks – proof that your letters to the editor and other community-facing actions like making a public comment at a city council meeting, public hearing or study can absolutely change outcomes. They sure did in Concord, no? Never underestimate the value of sharing your opinion with your community. Your community is listening. In the next few days I will be sharing other viewpoints on this important topic. Reach out to us at benindy@beniciaindependent.com if you would like to share yours. – N.C.]

East Bay kingpin Albert Seeno Jr. and his son have long courted controversy. Now they’re fighting each other for the family business

Albert Seeno Jr. (left) and son Albert III

The Real Deal [Real Estate News], by Pawan Naidu, May 1, 2023

For a family that’s spent the last nine decades building a real estate empire spanning thousands of homes in the East Bay, the Seenos have generally tried to keep their business dealings quiet.

“They don’t take the Donald Trump approach and pat themselves on the back,” said Phil Tagami, CEO of California Capital and Investment Group, which partnered with the Seenos on a failed bid to redevelop a former naval base in the region. “They just go onto the next project.”

But the spotlight they’ve avoided for decades does find them occasionally — and not for the right reasons.

For the past year, 80-year-old patriarch Albert Seeno Jr. has been waging a battle for control of the family business with his son Albert III, who he claims mishandled funds and attempted to muscle him and other relatives out. That is only the latest chapter in the Seenos’ decades-long legal history, which is dotted with allegations ranging from political meddling to threats of outright violence.

The Seenos did not respond to interview requests for this story.

The American dream

The family’s Bay Area story began when Albert Jr.’s grandfather Gaetano Seeno came to the U.S. in the early 1900s, one of thousands of Italian immigrants who became ​​fishermen in the Sacramento-San Joaquin River Delta and Suisun Bay.

Gaetano later worked in construction, eventually bringing his son Albert Sr. into the business.

Albert Sr. launched his own construction business in 1938, and at the time of his death in 2000, the company had built more than 30,000 homes, dozens of shopping centers, apartment buildings and offices, mostly in eastern Contra Costa County.

“In [the East Bay’s] Pittsburg, you can drive for miles and everything you see is a Seeno project,” Bob Rossi, a company executive, told SFGate in 2000. “[Albert Sr.] loved Pittsburg and took great pride in what he and his sons accomplished here.”

When Albert Sr. retired in the 1970s, he turned his company over to his sons, Albert Jr. and Thomas, who continue to run it as a family business across five companies: ADSCO, Seecon, West Coast Home Builders, North Village Development and Seecon Built Homes.

In 1997, third-generation exec Albert III followed in his father’s footsteps and started his own branch of the family business: Discovery Builders.

The growth that Albert Jr. led didn’t come without controversy, even though some locals have seen him in a different light.

“He’s almost like the pope with these people in town,” Allen Valentine, former Pittsburg Planning Commissioner, told SF Gate in 2002.

Nevertheless, he has been accused on multiple occasions of having improper relationships with local leaders — including allegations that he helped former Pittsburg Mayor Frank Aiello secure a favorable mortgage to buy a Seeno home, raising questions about whether the loan constituted a prohibited gift to an elected official. In 2004, Aiello agreed to pay $20,000 after failing to disclose gifts he’d received from Albert Jr., including Oakland Raiders tickets and trips to a casino in Reno, according to SFGate.

In 2003, former Pittsburg Councilmember Frank Quesada was sentenced to 300 hours of community service after pleading no contest to conflict-of-interest charges stemming from his votes on Albert Jr.’s projects while he owed the developer $370,000 in personal debt.

At a panel discussion ahead of the 2012 Pittsburg City Council election, voters expressed concern about the family’s outsized influence over the body, noting that the Seenos owned 90 percent of the city’s undeveloped land, according to the Mercury News.

Despite the alleged improprieties, the family has sought to maintain a favorable local reputation — and continue developing new projects. Last month, Discovery Builders scored approval to build 1,500 homes on 341 acres just outside Pittsburg after years of pushback from local officials and environmental groups.

But as Albert III tries to move the business forward, the family’s past keeps coming back to haunt him.

Seeno evil

Other far more serious accusations have been levied against the family. In 2012, the Seenos sued influential Las Vegas lobbyist Harvey Whittemore, accusing him of embezzling millions from a joint real estate venture called Wingfield Nevada Group Holding Co.

Whittemore countersued Albert Jr., accusing the father and son of threatening him and his family of failing to repay millions of dollars in alleged debts from a real estate partnership that fell apart in 2011. Whittemore sought $1.8 billion in damages from Albert III and his brother, accusing the Seenos of racketeering, extortion, grand larceny and threats of bodily harm.

No criminal charges were filed, and the lawsuits were settled confidentially in 2013, months before Whittemore was sentenced to two years in prison for illegal campaign contributions to Senator Harry Reid.

“[Whittemore] filed a frivolous, baseless lawsuit that went nowhere and was dropped,” Louis Parsons, president of Seeno-affiliated Discovery Builders, told The Real Deal.

But Whittemore wasn’t the only one to make accusations of intimidation against a member of the Seeno family. In 2017, Ayman Shahid, a high school friend of Albert III and former president of Discovery’s sales arm, alleged that the younger Seeno issued him a “chilling death threat,” according to court documents. The alleged threat had to do with Shahid agreeing to assist the FBI in a probe into alleged mortgage fraud tied to the family business.

“Hey [expletive]. You’re going down! I’m going to kill you!” Shahid accused Seeno III of saying, according to court filings.

The charges were ultimately dismissed due to lack of evidence of a credible threat.

“There is no evidence that Shahid was ever in any actual danger,” federal prosecutor John Hemann wrote to the court. “Though totally and completely inappropriate and potentially retaliatory in nature, it appears that his former boss was venting anger rather than actually threatening death or harm to Shahid.”

The FBI’s investigation into mortgage fraud started in 2010 and ended in 2017, with a federal raid of the Seeno family’s headquarters in Concord. Investigators alleged that Seeno companies misled bank underwriters about the true value of homes, according to an FBI spokesperson. The alleged misconduct took place between 2006 and 2008 when Discovery took steps to avoid losing its position in the market, according to court documents.

The filings revealed that Discovery incentived new homebuyers by funding their down payments and subsidizing their mortgage payments. The company’s employees and others worked to ensure these incentives were not disclosed on mortgage loan applications.

While no member of the Seeno family was charged, Shahid pleaded guilty to bank fraud and Discovery Sales was fined $8 million and ordered to pay $3 million in restitution. Albert III denied any involvement.

“The U.S. attorney’s office confirmed after years of investigation and interviewing hundreds of people that there was no evidence that Albert Seeno III or other leadership knew or participated in the actions by rogue [former] employees,” Parsons told TRD.

Even though Shahid cooperated with the federal investigations, he still received a 46-month prison term in 2017.

“It’s important to me that white collar defendants believe if they act this way they will suffer serious custodial sentences,” Judge Yvonne Gonzalez Rodgers said at the sentencing.

Throughout the various accusations, it has always been the Seenos on the same side. But a new lawsuit between father and son has changed that.

Daddy issues

The recent lawsuit filed by Albert Jr. claims that Albert III was terminated as CEO of two of the family companies: Seecon and Seecon Built Homes. It was a role Albert III was elevated to in July of 2020. Albert Jr. claims he attempted to fire his son in February and March of last year, but his son did not comply. Albert III instead argues that there is language in his employment agreement that states he can only be terminated if he commits a felony that affects his father’s businesses.

Albert Jr., however, claims his succession plan was to promote his son without immediately ceding his own control over the companies. The lawsuit also alleges that the younger Seeno, along with Parsons, retained attorneys to draft an employment agreement with language that could force his father and other shareholders out.

Not long after the agreement was drafted, Albert III allegedly began “coercing, intimidating and then bullying” his father into fulfilling the contract, according to the lawsuit.

“Seeno III intimidation tactics included, but were not limited to, attempting to bully and denigrate his father. When these tactics failed, Seeno III resorted to pressuring Seeno by telling him that if he did not sign the employment agreement, Seeno would never see his three grandsons again,” the filing reads.

Albert Jr. has also accused his son of blocking him from accessing company records and using Seeno Companies employees for Discovery Builders projects.

In one example, the lawsuit alleges that Discovery Builders used the Seeno Companies’ name and trademarks on a project to bring 252 single-family homes to Brentwood.

Albert III has denied all of the allegations in the lawsuit, according to Parsons.

“This is reflective of some natural tensions with succession planning that are often typical, unfortunately, and in my opinion, hardly newsworthy,” he said.

Albert III countersued his father in October, disputing claims of roughly $100 million of debt allegedly owed by Albert III and Discovery Builders.

Albert III alleges that funds from a trust his parents set up were used to pay down Albert Jr.’s debts without his permission. Albert III also accused his father of attempting to interrupt operations at Discovery Builders in the lawsuit.

The family feud has not only pitted father against son, but it also sent a warning shot across the Bay and played a role in killing a major project for the firm.

A partnership between Discovery, Lewis Group & Cos. and California Capital and Investment Group was selected to transform a former naval station in Concord into 16,000 new homes and more than six million square feet of commercial space. The partnership known as Concord First Partners was approved by the Concord City Council in a 3-2 vote in August 2021.

But after a two-hour special meeting on Jan. 28 of this year, the council voted to cut ties with the group, citing concerns over the Seeno family feud and why it wasn’t disclosed sooner.

“Where’s the integrity, where’s the information to let us know?” Concord Mayor Laura Hoffmeister said during the meeting. “We had to read about it in the newspapers, that’s not what I’m looking for in a partnership arrangement.”

The development team believes the city’s decision to halt negotiations was misguided.

“A lot of the questions are personal and aimed at personalizing the issue,” Capital California’s Tagami said. “It didn’t have to do with the term-sheet specifics or the deal point, but rather addressing accusations that were made through editorial comment that were in the local papers.”

It’s another issue the father and son duo will have to sort through as the future of one of the last family-run development firms in the Bay Area hangs in the balance. While the court can settle their business dispute, it’s up to Albert Jr. and Albert III to squash their personal differences. Otherwise, it will be an awkward Thanksgiving for the Seeno family.

CONCORD/CONTRA COSTA BACKGROUND:
BENICIA BACKGROUND:
CITIZEN BACKGROUND:
CITY OF BENICIA
City of Benicia North Study Area (Seeno property)

For current information from the City of Benicia, check out their North Study Area web page, https://www.ci.benicia.ca.us/northstudyarea:

Concord CA, Discovery Builders, Environmental Impacts, Environmental review, Keeping Watch on Earth News, Pittsburg CA, Save Mount Diablo, Seeno

Seeno attorneys request new trial – Save Mount Diablo says motion “Should be denied”

Seeno’s attorneys request new trial following Save Mount Diablo legal victory against Faria project in Pittsburg hills

The Pittsburg hills where the Faria project has been approved for construction, as seen from the San Marco neighborhood in Pittsburg. Photo: Scott Hein
607-acre, 1,650-home development next to planned Thurgood Marshall Regional Park – SMD leader says motion for new trial “should be denied”

Contra Costa Herald, by Allen D. Payton, March 3, 2022

Last Friday, Feb. 25, 2022, attorneys representing Discovery Builders and their Faria new home development requested a new trial for the lawsuit by Save Mount Diablo, following a judge’s decision in favor of the environmental group to stop the project. As previously reported, on March 30, 2021, Save Mount Diablo filed a lawsuit challenging the City of Pittsburg’s approval of the 1,650-unit Faria project, on the ridgeline between Pittsburg and Concord. According to the agenda item documents, the master plan overlay district encompasses approximately 607 acres of land. (See related article)

The motion for a new trial was filed “on the basis that the Court’s decision is not supported by the evidence and controlling legal authorities. Specifically…that there were several portions of this Court’s February 10, 2022, Statement of Decision that may not have fully considered evidence in the administrative record.” In addition, the motion asks that the “Court vacate its Statement of Decision and enter a new decision denying SMD’s motion” and “conduct a new hearing”. Faria project Motion for New Trial Parsons Dec. ISO Mot for New Trial      Raskin Dec. ISO Mot for New Trial    Faria project new trial Proof of Service

A hearing date on the motion for a new trial has been set for April 14, 2022.

The now named Thurgood Marshall Regional Park is directly adjacent to the Pittsburg City Council approved Faria project. Herald file graphic. Credit: Save Mount Diablo/Google Earth.

On the day of the decision, Save Mount Diablo issued the following press release about their legal victory: [Previously published here on BenIndy, see Save Mount Diablo Wins Major Legal Victory Against Seeno to Protect Pittsburg’s Hills.]

Save Mount Diablo Says Motion for New Trial “Should Be Denied”

Asked about the motion for a new trial, Save Mount Diablo Executive Director, Ted Clement responded, “Regarding the Seeno companies/Pittsburg request for a new trial, the Court has already rejected their arguments for reasons fully set forth in its decision. Their Motion for New Trial does not question the adequacy of the administrative record on which the Court properly based its decision (and which the City itself prepared) or suggest there was any other irregularity or unfairness in the hearing. Instead, they seek a second bite of the apple.”

“Their Motion reargues issues that were fully briefed and addressed in the Court’s Decision,” he continued. “They also seek to introduce irrelevant and improper extra-record evidence, violating black letter law that CEQA actions must be decided on the record that was before the agency when it made its decision.”

“Because their Motion provides no basis for this Court to order a new trial solely on the issues decided adverse to them, it should be denied,” Clement concluded.

Concord Communities Alliance, Save Mount Diablo, Seeno, Seeno property

Sign the Petition for our friends in Concord – Reverse the Seeno decision!

Effort launched to remove Seeno Companies’ grip on major Concord housing development plan

The Concord City Council will negotiate exclusively with the Seeno companies to develop the long-anticipated Naval Weapons Station project. (Dan Rosenstrauch/Staff Archives)

SiliconValley.com, by Shomik Mukherjee, September 29, 2021

In response to the Concord City Council’s decision last month to negotiate exclusively with the controversial Seeno Companies and its affiliated developers to oversee one of the East Bay’s biggest housing projects in recent history, Seeno’s longtime foes are launching a two-pronged effort to sway the council to reconsider.

Notorious for playing hardball with local governments and environmental groups, family-run real estate developer Seeno and its associated companies won the council’s approval for a shot at possibly becoming the master developer of the former Concord Naval Weapons Station. Discovery Builders, which was established by a Seeno family member, is listed as the group’s lead company.

The grassroots Concord Communities Alliance is circulating an online petition that so far has collected 1,300 signatures urging the council to revisit its 3-2 vote. Meanwhile, a member of the Democratic Party of Contra Costa County has written a resolution formally opposing the council’s decision and asked the party to throw its political weight behind a formal protest.

But the opposition will have to move swiftly if it’s going to sink the arrangement. Concord Economic Development Director Guy Bjerke said Tuesday his goal is to finish negotiations by late October. After that, the council could make Discovery Builders the project’s official master developer.

The stakes are high. The master developer would implement the city’s vision for 13,000 new homes and millions of square feet of office and commercial space — in essence, a new community — on the former naval weapons site.

Discovery Builders had previously sued the Navy to stop the project when it was in the hands of another developer.

Now the company, headquartered in Concord near the site of the proposed development, is poised to be in the driver’s seat to oversee that very project.

The resolution by Democratic Party secretary Kenji Yamada blasts Seeno for a “history of bad faith and unethical behavior,” suggesting the company’s negotiations with the city will either end in turmoil or lead to “poor-quality homes and environmental destruction.”

The resolution is currently being reviewed by the party’s “issues” subcommittees and could appear before its central committee for consideration in October. Yamada, who also is a member of the party’s executive committee, says he wrote the resolution as an individual.

“I was surprised that they were selected, not so much because of their atrocious record of ethical violations, but because the name of Seeno is so notorious among residents and constituents of the City Council that I didn’t think the council would dare to select them,” said Yamada, who ran unsuccessfully for the council in 2018.

The Concord City Council discusses its choice for a new master developer of the Concord Naval Weapons Station project during a meeting on Saturday, Aug. 21, 2021. (Screenshot)

The development partners, which include Lewis Planned Communities and California Capital Investment Group as well as Seeno and Discovery, released a statement saying they were “extremely honored and proud” to be selected for the project.

“We look forward to working with the City of Concord and the Concord community to design and develop a first class project that the entire region can all be proud of,” Louis Parsons of Discovery Builders said in an emailed statement.

Former council member Colleen Coll said Seeno has a reputation of running roughshod over any obstacles to its desired developments.

“They don’t disclose their financials, the rules don’t matter to them — none,” said Coll, who served on the council in the 1980s.

Though vilified by environmental groups and others, Discovery and Seeno also have their backers, including labor unions. Well before the council vote, they had secured a project labor agreement with the building and trades union, which guarantees that construction jobs will go to union members. The site’s previous master developer walked away from the project after refusing to sign such an agreement.

The three council members who voted to award the exclusive negotiating agreement last month to the Discovery/Seeno team dismiss the criticisms leveled at Seeno.

“The art of diplomacy and negotiations seems to have a very slow learning curve in a state where 20% of the country’s lawyers live,” Councilman Edi Birsan said in an email addressing Seeno’s long history of litigation.

Seeno sued the Navy in 2018 to stop it from transferring the weapons site to Concord, claiming the influx of new homes would result in traffic gridlock. Last year, Discovery Builders sued the East Bay Regional Park District to prevent it from acquiring adjacent Navy-owned land for the establishment of new parkland.

Discovery Builders claimed the park district did not do a “sufficient environmental review” of the planned park’s impacts on the surrounding environment.

But East Bay environmental groups say Seeno’s track record shows it’s no friend of the environment.

Save Mount Diablo, which advocates for conservation of open space and natural lands, lists on its website a timeline of news reports detailing past criticisms of Seeno.

“There are clear ethical and environmental violations,” said Zoe Siegel of San Francisco-based Greenbelt Alliance.

It’s unclear what impact the petition or the party resolution would have on the council’s decision-making.

Kathy Gleason, a Concord resident since 1974 and a fierce opponent of Seeno’s selection, said she doubts the opposition will succeed in changing the council’s mind but she hopes it’ll at least serve as notice.

“It seems, the way we exist today, that if the public speaks up loud enough and long enough, maybe we’ll get change,” Gleason said.