Temple Purchase Tribulations
Some surprising revelations come to lightby Dean Gray
May 6, 2009 
Desert Hot Springs, CA – Last week's edition examined how Baptist Pastor Steven Mesarch purchased Temple Baruch Hashem for $93,000, later changed his name to Rabbi Alon Barak and then, through a series of unusual real estate transactions, received $1.4 million dollars on the sale of the building to the city’s Redevelopment Agency (RDA).
The unfolding of the million dollar scheme took years. It involved a city council pressured by two forces: a lack of community meeting spaces and opposition to the rumor the building would be purchased by a non-profit organization helping parolees. With those forces in play, lobbying by a city councilman pushed the purchase through on a RDA vote of 4 to 1.
Sale of the building to the city was not the end of the transaction.
After selling the building, Barak halted escrow so he could change the title and show the purchase being made from the Temple Baruch Hashem, Inc., rather than from Barak, the individual. According to a letter from his Palm Springs attorney to the city, this allowed Barak to avoid personal taxes on the sale.
The RDA agreed to the change, redrafted transaction documents and then voted a second time 4 to 1 to approve the purchase.
In an attempt to follow up, this publication tried repeatedly to contact Barak. The closest we got was Barak’s long-time friend, Councilman Scott Matas, who informed us Barak had moved to Israel and was unavailable. Matas was asked to help obtain a phone number, email address or mailing address for Barak.
Matas returned our call to say Barak is not interested in providing contact information or participating in an interview. Our investigation of the Temple continues.
LOBBYING TO BUY
Lobbying for the purchase of the Temple was headed by Matas during four months in which the matter came before the city council in a series of study sessions and closed sessions taking place under the heading, “Conference with real property negotiators.”
During those discussions, Matas was adamant that the city did not need more parolees and that the sale to an organization providing parolee services was a serious threat to the city. Neither Matas nor Barak identified the organization reportedly willing to pay $2.4 to $3 million for the building. Matas explained Barak was willing to forgo extra profit to sell the building to the city for the “bargain deal” of a $1.4 million purchase price.
Addressing the city council, Barak said the Temple had functioned as a school, that he was passionate about the city, and that he would love to see the legacy of the Temple continue. He said purchase by the city would make sure the building continued to serve the city in a positive way.
Matas’ long standing relationship with Barak was never disclosed publicly at meetings where the Temple purchase was considered. He also did not disclose his contacts with Barak during the time the Temple's purchase was being promoted to the city.
STAR PUPIL
Councilman Matas was a star pupil at Palm Springs Christian High School operated by then Pastor Steven Mesarch (before changing his name to Alon Barak, and affixing Rabi and Doctor to his name). Mesarch/Barak served as “Headmaster” for the 60 students in K-12 grade school run by three teachers. Matas was valedictorian of a graduating class of five.
In our interview with Matas last week, he said he spent three years (grades 10-12) attending Meshach’s one-room school on the corner of Pierson Blvd. and Little Morongo Road in Desert Hot Springs. The building is currently occupied by a Spanish Christian Church. Several years after Matas’ graduation Barak transferred school operations to the Jewish Temple.
Matas also confirmed that following his time as a student of Barak his contact with the headmaster languished before it was rekindled shortly after Matas announced his council campaign. A new friendship developed, assisting Matas in his March 2007 campaign for a seat on the DHS City Council. Barak, a key political supporter of Matas during that campaign, appears as the top endorsement on Matas' 2007 campaign website (see illustration).
It is not known if the relationship between Matas and Barak influenced the city redevelopment agency purchase of the Temple building. Matas doesn't see it that way. Matas said he was only trying to help the city avoid the convict ministry taking over the Temple. Matas freely admitted in our interview with him that he met privately and spoke with Barak regarding the purchase of the building prior to the council vote.
“I didn't see it as a conflict of interest so I didn't think I had to say anything to anyone about it,” said Matas, adding it is well-known that he and Barak are longtime friends.
Much of the council discussion of the Temple building was not conducted in regular session. Instead, the Temple purchase was discussed in a series of what is referred to as “council study sessions” and “closed session” negotiations. The less regular study sessions are held every other week but on varying days, usually Monday or Tuesday, and at varying times, either 4 pm or 5 pm, and are not televised as are regular council meetings.
THE CITY VOTE
The two votes on the Temple purchase – one from Barak, the individual, and the re-crafted purchase from Temple Baruch Hashem were both by a 4 to 1 vote. Councilman Russell Betts was the lone dissenter.
Contacted for an interview following publication of last week’s Temple story, Betts said he had concerns over the purchase.
“I was concerned over the purchase price. It was too much for that building. I wanted a structural inspection to be done before the city purchased it,” said Betts. “I also raised questions about the cost to renovate the building and wanted a cost analysis for bringing the 50-year-old building up to code. I felt we did not have enough information and I had other concerns.”
Asked if one of those concerns was Matas’ relationship with Barak, Betts said he was unaware of it, and would have voted against the purchase either way. “If my vote subjects me to criticism, that’s fine. I truly hope the eventual outcome will be this project will be a success.”
The city had a city building inspector look at the building. That inspection showed that the building would need to be made handicap accessible.
GOOD NEWS
There is good news after all this. A theater group that has long been looking for a place to hold performances is looking at using a portion of the Temple that served as the sanctuary and includes an area that can be used as a stage.
To get the building opened up for that purpose, the city is now undertaking a structural inspection, a necessary step to allow occupancy. That report is expected in the next few months. Recently city crews were observed cleaning up debris piled near the entrance leading to speculation that the doors will open soon. Once cleared for occupancy, a building that many believe has a lot of potential will finally be used for much needed community services.
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