On July 1, Orange County makes its last bankruptcy-bond debt payment. I recall … Bond debt was Plan B. Plan A was a voter-approved half-cent sales tax. The sales tax pitted OC’s business class against its political class. In 1995, GOP Boss Tom Fuentes still won most battles. Hugh Hewitt was a rising media power on KFI bent on crushing “this regressive tax.” The “Killer Bs,” public agencies long in bed with Treasurer Bob Citron, cozied to the populists. “No on R” had energy. Tax backers—more like Hillary 2016 backers.
Banker Bill Popejoy, OC’s interim CEO, reluctantly asked the Board to put the levy on the ballot. The MSM spent months scolding this “rich county” to do the “right thing.” Voters arched their backs and thumped the tax 61 to 39. It was a Trumpist moment in 1995 OC.
I won a steak dinner off Popejoy—a stand-up guy. Worked for nothing. The robust OC economy was the hero—generating cash flow to pay off $800 mill in bonds.
“Something smells big,” sniffed Peter J. Brennan, our financial editor. Brennan’s seen 35 years of deals. We had one Wednesday that aroused his senses—fledgling Seattle investment firm Richmond Partners bought Irvine’s SmartLabs for an undisclosed sum. Richmond’s helmed by Rob Lilleness, returning to OC after a run as COO of Santa Ana’s Universal Electronics. SmartLabs sells IoT devices that connect home electronics—Alexa! Richmond pegs that hot market growing to $11 bill by 2011. Our tech editor, Chris Casacchia, pegged SmartLabs at $200 mill last year. Lilliness wouldn’t comment on the size of SmartLabs but told me, “It’s a firm with great patented technology—and yes, it’s a big deal.” Buyer and seller boast discernable ties to four of tech’s Big Five: Apple, Microsoft, Alphabet and Facebook—a SmartLabs buy backed by smart money?
Our Special Report is on OC’s largest private cos. (stories, list page 1, 19 to 34.)
No. 28 is Passco Cos., an apartment and retail investor (Mark Mueller’s story, page 22). Passco CEO and founder Bill Passo, who calls himself a member of the “The Lucky Generation,” closed his first deal in 1976, and in 2016 grew revenues 26%.
Inspiration Point: No. 39 on our list is Ambry Genetics in Aliso Viejo. Charles Dunlop started the firm in 1999 “after being roughed up by people talking credit for my stuff.” Ambry today is a leader in genetic testing to cure diseases. Dunlop owns 50% and is a team player. He shares much of his data. He is also a stage-four cancer survivor—“We were so busy with patients, I never took my own sample.” Talking with Dunlop will lift your spirits. “My father told me, ‘You think life’s a poker game—I’m telling you there’s always room for an honest young man.’”
