Sacramento councilman seeking re-election owes more than $200,000 in unpaid taxes
In campaigning for a third term on the Sacramento City Council, Allen Warren often talks about bringing grocery stores to his underserved North Sacramento neighborhood and cites his business acumen as an asset to his council district.
But when it comes to his own business affairs, Warren frequently struggles to pay his bills on time, records show.
A real estate developer, Warren has been issued notices for delinquent federal, state and county taxes totaling at least $472,080 since 2015, according to a Sacramento Bee review of documents filed at the Sacramento County Recorder’s Office. He still owes $203,392. He also is behind on at least $822,926 worth of loans on properties, records show.
Just six weeks ago, the county sent him a notice saying he was about to lose his New Faze Development headquarters on Del Paso Boulevard unless he paid a $17,201 property tax bill, which was due seven years ago.
Warren said in an interview he’ll pay the unpaid taxes by the end of the year.
“This kind of stuff is not uncommon for somebody that has lots of properties,” Warren said. “They will be paid.”
He called the tax bill on his business headquarters “a really small amount” and said his late payments are simply a product of being in real estate — particularly in the disadvantaged neighborhoods where he does business.
“I’ve chosen to invest in some of the most challenging places in the city, which happens to be where I grew up,” Warren said. “A number of the properties are rented for substantially reduced rent. In some cases they pay no rent.”
Warren rents one of his buildings to youth mentoring nonprofit Brother to Brother, for example, and does not charge the organization, he said.
Sean Loloee, Warren’s challenger for the District 2 council seat, criticized his opponent for the unpaid taxes.
“Council members should always act in the best interest of the community,” Loloee said in a statement. “That includes paying their fair share of taxes – taxes that fund our schools and provide vital social services for those who are in need.”
While the tax liens mount, Warren has been pumping money into his council campaign. Since Jan. 1, Warren has put $20,000 in cash and $150,400 in loans into his campaign, campaign finance records show. Of the loans, $109,400 have so far been paid back.
“I put money in my campaign every time I run,” Warren said. “Check the records.”
Warren has also purchased multiple personal properties in recent years, he said. Records show those purchases include a Las Vegas condo he bought in January 2016 for $440,000. He defended those purchases.
“What difference does it make where I own properties?” Warren said.
It’s not the first time Warren has faced financial issues. In 2011, shortly after the Great Recession, Wells Fargo sued Warren for roughly $2 million in unpaid loans.
But some of the current liens were filed due to nonpayment in 2016 through 2019 – years after the recession. For example, the state issued a tax lien of $8,699 for nonpayment in tax years 2016 and 2017, records show.
Warren defends his record
Warren was first elected to represent North Sacramento in 2012, when he won a tight campaign over Rob Kerth, a longtime North Sacramento public figure and former councilman. Warren was re-elected by a wide margin in 2016.
When asked about his biggest accomplishments during his eight years on the council, Warren put at the top of the list helping three grocery stores open, with another to be announced this month. Del Paso Heights has historically suffered from being a “food desert” without grocery stores or access to fresh fruits and vegetables. The grocery stores did not receive city subsidies, but Warren helped the projects navigate the city permitting process, he said.
One of the grocery stores Warren says he helped was the Viva Supermarket in Del Paso Heights, owned by Loloee.
“He had a bunch of building permit issues, the property was red-tagged,” Warren said. Red-tagged properties are deemed unsafe for human habitation.
Loloee said Warren never helped him open the store.
“In fact, he worked against it, but like a typical politician he showed up at the ribbon cutting to take credit,” Loloee said.
Warren also points to chairing the Golden 1 Center committee as a main accomplishment. Faced with the threat of losing the Sacramento Kings to Seattle, the city under then-Mayor Kevin Johnson brokered a deal to keep them in Sacramento and build a downtown arena with the help of a controversial city subsidy.
“I led one of the largest projects in the city of Sacramento, the Golden 1 Center,” said Warren, a strong ally of Johnson’s.
Uplifting disadvantaged youth with new programs and services has also been a priority, Warren said. In his first year, he revitalized a youth sports program in Del Paso Heights, which now has more than 600 kids participating in baseball, basketball, football and track, he said.
“That was a huge part of the community when I was growing up,” said Warren, who played in the New York Yankees minor league baseball system. “It’s what kept me and a lot of people out of trouble.”
After voters approved the Measure U sales tax increase, a sizable amount of the surplus from the original Measure U went to Warren’s district for such projects. It included about $1.9 million for the Del Paso Heights Sports Complex and $1.3 million to restore the Iceland skating rink.
Warren is endorsed by Mayor Darrell Steinberg, the Sacramento Metropolitan Chamber of Commerce, the city firefighters’ union and the Democratic Party of Sacramento.
Who is Sean Loloee?
Loloee immigrated to the United States in 1985 from Iran.
He opened a grocery store in Los Angeles and another in a disadvantaged Oakland neighborhood. He then did the same thing in Sacramento, according to his website. He is the owner of Viva Supermarkets, which now has two locations in District 2, including the store in Del Paso Heights. The stores in the district employ 100 people and 95% live in North Sacramento, his website says.
“It’s clear when I talk to residents, they want change, expect integrity from their council members, and want new ideas that will advance our community,” Loloee said in a statement. “Allen Warren is not that council member.”
In the March primary, Warren got 39% of the vote, while Loloee secured 26%, forcing a runoff on Nov. 3.
Loloee’s past has not been without controversy.
In 2018, Loloee’s company was hit with a class-action lawsuit by two former Latino employees, claiming they were not paid overtime, were not given meal or rest periods, were never reimbursed for paying for their own uniforms and other allegations.
The lawsuit, filed in Sacramento Superior Court, is still active. Loloee paid a settlement last month, court records show.
“As a Sacramento small business owner for over 10 years, I’ve always taken great pride in creating a familial environment in my stores where every team member is paid a living wage and has access to great opportunities and advancement,” Loloee said in a statement. “However, like many California businesses, we were faced with a frivolous lawsuit. We categorically denied the charges, handled it and moved on.”
Loloee’s endorsements include support from former Councilwoman Sandy Sheedy, the city police union, the local sheet metal workers’ union and the Union of American Physicians and Dentists.
