One $54 million lawsuit and four years of feuding between the
Local Agency Formation Commission and Award Homes came to an end
last night when LAFCo granted the developer permission to annex 125
acres into the city.
Hollister – One $54 million lawsuit and four years of feuding between the Local Agency Formation Commission and Award Homes came to an end last night when LAFCo granted the developer permission to annex 125 acres into the city.

“It feels great. It feels really great,” said Mike Durkee, Award’s attorney, after LAFCo voted 3-2 to allow the annexation.

The developer has plans to build a 677-home subdivision known as the West of Fairview project by St. Benedict’s church over 13 years. Until last night, Award was unsure whether it would be able to build once the sewer moratorium lifts because LAFCo had denied it permission for annexation.

According to Durkee, annexation is a necessary step in a situation like this one because the subdivision will need to use the city’s services such as sewers, fire fighters, and police.

In mid-2001, Award filed a lawsuit stemming from LAFCo’s refusal of the annexation, even after the City Council had approved it. Last night’s decision not only closes this lawsuit, but brings the city additional funds and incentives.

Award will give the city $250,000 for the nearly completed fire station on Union Road and Airline Highway, $1 million for its ailing general fund, and will make 20 percent of the subdivision’s housing affordable.

“This has been a very long process, and one that we will hopefully tonight seek to conclude,” said Nancy Miller, LAFCo’s lawyer, before the board voted. “LAFCo had a number of issues and concerns with the (Award) proposals as they had come to us in 2002. You were concerned with issues like environmental impact studies, traffic, water availability and treatment, fire services, and affordable housing. Award Homes resubmitted plans to the City Council on Dec. 6, and I think all of those concerns have been addressed in the resolution before you tonight.”

LAFCo voted 3-2 to approve the resolution granting annexation. One of the “no” votes came from Pauline Valdivia, a city councilwoman who has been opposed to the development since its proposal. Valdivia said she has long believed Hollister does not have the resources – between the sewer system and the already dangerous Hwy. 25 – to support a project of this size.

Award plans to start putting together plans immediately for the project, according to President Stephen Scott, although they will not be able to build until the sewer moratorium is lifted.

Scott said Award is shooting for a construction date sometime in spring of 2006.

Jessica Quandt covers politics for the Free Lance. Reach her at 831-637-5566 ext. 330 or at [email protected].

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A staff member wrote, edited or posted this article, which may include information provided by one or more third parties.

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