Item 11 - Poway RDA v. Parkway Bus. Centre Partners Ltd.
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AGENDA REPORT SUMMARY
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TO: Honorable Mayor and Members of the City Council
FROM: James L. Bowersox, City Man~
iNITIATED BY: ,
Stephen M. Eckis, City Attom~
DATE: December 5, 1995
SUBJECT: Poway RedeveloDment Al!ency v. Parkway Business Centre Partners.
Ltd. Settlement
ABSTRACT:
On June 27, 1995, the City Council approved in closed session the settlement of Pow~
RedevelQpment Ae:ency v. Parkway Business Centre Partners. Ltd., San Diego Superior
Court Case No. 685313, subject to execution of documents, Settlement as approved is
now final.
ENVIRONMENTAL REVIEW:
Environmental review is. not required for this agenda item according to CEQA guidelines.
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FISCAL IMPACT:
$7,372,075 from Phase I increments is payable to Burlich according to the promissory
note. $1,700,000 from Phase I increment is payable to the City according to the
promissory note.
ADDmONAL PUBLIC NOTIFICATION AND CORRESPONDENCE:
None.
RECOMMENDATION:
Review and me.
ACTION:
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AGENDA REPORT
CITY OF POW A Y
TO: Honorable Mayor and Members of the City Council
FROM: J_ L. Do"""'. City ~
INITIATED BY: Stephen M. Eckis, City Att
DATE: December 5, 1995
SUBJECT: Powav RedeveloDment A2encv v. Parkwav Business Centre
Partners. Ltd. Settlement
ABSTRACT:
On June 27, 1995, the City Council approved in closed session the settlement of
Powl\Y Redevelopment A2ency v. Parkway Business Centre Partners. Ltd" San Diego
Superior Court Case No. 685313, subject to execution of documents. Settlement as approved
is now final.
BACKGROUND:
The Redevelopment Agency and Parkway Business Centre Partners, Ltd. ("Parkway")
executed an Owner Participation Agreement ("OPA") on November 15, 1988. Parkway
agreed to build various public improvements including the Scripps poway Parkway across its
property. Powayagreed to pay Parkway approximately $17,000,000. Parkway did not build
all of the improvements and has failed to pay taxes on the property, On March 17, 1995,
Poway filed suit asking the court to declare the respective rights and duties of the parties.
Parkway, now Burlich Corporation, cross-complained in the lawsuit claiming that
Poway caused Parkway unspecified millions of dollars of losses, The parties have now
settled the lawsuit. The settlement agreement is on file in the City Clerk's office,
FINDINGS:
The lawsuit has been settled in the best interest of Poway on the following essential
terms:
ACTION:
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Agenda Report
-- December 5, 1995
Page Two
1. Burlich receives a Promissory Note for $7,372,075 payable from future tax
increment from Phase I of the project in return for the public improvements built by
Parkway.
2. A second Promissory Note for $1,700,000 payable to Burlich is assigned to
the City to defray the amount provided by the City to the CFD to avoid a default on bonds,
3. All parties release one another from all claims arising out of the OP A and the
project, except that Burlich continues to be obligated to pay all taxes.
ENVIRONMENTAL REVIEW:
None required.
FISCAL IMPACT:
$7,372,075 from Phase I increments is payable to Burlich according to the promissory
.",-. note. $1,700,000 from Phase I increment is payable to the City according to the promissory
note.
PUBLIC NOTIFICATION:
Standard notification.
RECOMMENDA nON:
Review and file.
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