Award Homes agreed to temporarily extend a three-year-old
agreement with the city that was scheduled to expire this week and
open the door for continued negotiations between Hollister
officials and the company proposing the 677-home West of Fairview
development.
The decision means the lawsuit filed by Award Homes against
Hollister on Aug. 29 to force an extension to their original
agreement remains on file with the Superior Court, but the company
will not pursue legal action during this most recent six-month
extension and renewed negotiations, said Michael Van Every,
acquisition land development manager for Award Homes.
Award Homes agreed to temporarily extend a three-year-old agreement with the city that was scheduled to expire this week and open the door for continued negotiations between Hollister officials and the company proposing the 677-home West of Fairview development.
The decision means the lawsuit filed by Award Homes against Hollister on Aug. 29 to force an extension to their original agreement remains on file with the Superior Court, but the company will not pursue legal action during this most recent six-month extension and renewed negotiations, said Michael Van Every, acquisition land development manager for Award Homes.
On Wednesday, he called the city’s appeal for the temporary continuation a “good-faith action.”
“If we can reach some type of accord, we would potentially drop the lawsuit,” Van Every said.
Talks between the development company and the city, which had been ongoing for seven months, were halted when Award Homes filed the lawsuit. The city and the company had been negotiating a new deal that included added conditions that would be advantageous to the city.
The provisions included a financial contribution to the city’s upcoming construction of a second fire station, $2 million in upfront cash and additional affordable housing units. Award Homes filed the lawsuit because it was reportedly not satisfied with the progress of negotiations and felt some the city’s desired provisions were unfair.
The bonus provisions for the city are again achievable, as Van Every said “everything’s on the table right now.”
City Council members have declined comment on matters dealing with the Award Homes negotiations and lawsuit because it would violate bargaining and state law. City Attorney Elaine Cass, who reportedly devised the latest extension idea, could not be reached for comment before press time.
“This shows the city wants to come to an equitable deal,” Van Every said. “We want to approach it like that.”
The $250 million West of Fairview project has been planned for more than a decade and would be located at the corner of Airline Highway and Fairview Road. The Council initially approved the 127-acre subdivision in October 2000.
Officials and many citizens, however, expressed concern at the time because the city apparently lacked appropriate infrastructure to handle the relatively large development.
The Council approved the development agreement in October 2000. But the Local Agency Formation Commission, which annexes county property into city limits, foiled Award Homes’ plans by disapproving the annexation in mid-2001.
Award Homes subsequently – in May 2002 – filed a $56-million lawsuit in Monterey Superior Court against LAFCO. That same month a 15-million-gallon sewer spill in Hollister occurred that led to a state-mandated cease-and-desist order, which has forbid issuance of construction permits until October 2005, including any work on West of Fairview homes.
Van Every said the six-month extension that would expire March 12, and was agreed to last week, is the second such deal with Award Homes for which the city has bargained during the three-year term.
He said the lawsuit showed Award Homes is serious and willing to take legal action when necessary, “to protect our vested rights.”
“Really, at this time, I’m open to listening to what the city needs for the community,” he said. “What’s our fair share, and what’s the city’s and existing residents’ fair share?”
