Closed door negotiations have halted between Award Homes and
Hollister officials, and the firm is moving forward with a lawsuit
filed against the city in late August to force an extension to an
expiring development agreement.
The company also recently filed a deposition notice that
requests City Council members to produce several types of
documents
– including cell phone and e-mail records – for a mid-December
hearing, City Attorney Elaine Cass said Wednesday. A deposition
hearing requires testimony under oath.
Closed door negotiations have halted between Award Homes and Hollister officials, and the firm is moving forward with a lawsuit filed against the city in late August to force an extension to an expiring development agreement.
The company also recently filed a deposition notice that requests City Council members to produce several types of documents – including cell phone and e-mail records – for a mid-December hearing, City Attorney Elaine Cass said Wednesday. A deposition hearing requires testimony under oath.
The records and deposition relate to the suit because Award Homes claims Council members breached a confidentiality agreement by revealing details to the media out of closed-door talks, according to William Ross, an attorney for Award Homes.
“To me, it’s just not a big deal,” said newly elected Mayor Tony Bruscia. “I don’t keep e-mails. I don’t keep cell phone records. It’s really not a big deal.”
Council members Tony LoBue and Pauline Valdivia also said they do not maintain those records.
“I’ve got nothing to hide, but there’s no reason to open up my personal life,” LoBue said.
Award Homes initially filed the suit in late August. It was later shelved because the city, to allow for continued talks, agreed to move the agreement’s approaching expiration date from Sept. 12 to March 12.
Aside from forcing the extension to the three-year-old agreement, the suit also requested $60,000 – the amount of Award Homes’ legal fees during the negotiations. The firm claims Council members’ inability to keep the issues secretive damaged the talks. It is unclear whether Award Homes will now ask for more than $60,000.
Perhaps most consequential is the enlivened suit’s attempt to force the agreement’s extension. The city and Award Homes had been arbitrating for 10 months.
“The city is no longer negotiating with Award Homes,” Cass said.
In October 2000, the Council approved the controversial 677-home West of Fairview project – a $250 million subdivision next to St. Benedict’s Church north of Airline Highway. Its progress was slowed when the Local Agency Formation Commission in mid 2001 denied annexation of the land into the city.
Since, the state-ordered building moratorium, stemming from the catastrophic sewer spill of 2002, has disallowed any new permits in the city until October 2005.
The company, by forcing the extension through the courts, wants to extend the deal through the end of the moratorium. Meanwhile, sources close to the talks have confirmed some Council members are against continuation of the deal.
Award Homes officials have become increasingly frustrated, not only at the unsuccessful talks, but also that details from those discussions have showed up in the local newspapers. Sources have said the firm was offering several added provisions to get the extension through, including $2 million and a financial contribution to the construction of Fire Station No. 2.
“The litigation speaks for itself,” Ross said Wednesday.
Ross confirmed the motivation behind the upcoming deposition – the alleged breach of confidentiality by Council members.
Cass said she received the notice just before Thanksgiving.
“They’ve asked City Council members to bring certain documents with them,” Cass said. “The city will be responding.”
The deposition is scheduled to occur the week of Dec. 15, according to Ross. But the city’s hired law firm for the matter, Oakland-based Goldfarb and Lipman, will request the courts change the date to after Jan. 1, Cass said.
Councilman Brian Conroy could not be reached and councilman Robert Scattini declined comment.
