A court hearing is set for Jan. 13 on a lawsuit filed by Award
Homes against the City of Hollister, according to court
documents.
After months of negotiations, the housing firm recently sued the
city to force an extension to a three-year-old development
agreement.
A court hearing is set for Jan. 13 on a lawsuit filed by Award Homes against the City of Hollister, according to court documents.
After months of negotiations, the housing firm recently sued the city to force an extension to a three-year-old development agreement.
Without an extension, Award Homes can’t construct its planned 677-home tract because the agreement expires before the end of Hollister’s building moratorium. That disallowance of issuing building permits runs through 2005.
The 10 a.m. hearing in two weeks at the San Benito County Superior Court could be the start of a dragging legal process to decide whether the controversial development transpires. But both sides hope for a conclusion sooner than later, they said.
“Naturally, the sooner we can stop dealing with the Award Homes legal issues… the better,” Mayor Tony Bruscia said.
An attorney for Award Homes, Frank Nicoletti, also acknowledged an anxiousness to resolve the dispute. The goal, he said Monday, is for the courts to force an extension by the March expiration.
The development agreement, most recently extended in September, expires March 12. The two sides had negotiated extensions to allow for out-of-court talks to avoid the current litigation. Those secretive discussions halted as of late November.
Hollister City Attorney Elaine Cass is on vacation this week, according to officials. She could not be reached for comment Monday. Bruscia said the City Council planned to discuss the matter in closed session at its Jan. 5 meeting.
The Council initially approved the development, known as the West of Fairview project, in October 2000. Its proposed site is north of Airline Highway on Fairview Road next to St. Benedict’s Church.
The Local Agency Formation Commission (LAFCO) in mid-2001, however, denied annexation of the county land into city limits. That was followed by a $56 million suit against LAFCO and the sewer spill-induced moratorium in 2002.
“I think everybody is anxious to get this thing done and over with,” Councilman Tony LoBue said.
A court conference was initially scheduled for Dec. 15, but only Award Homes showed up, according to court documents. Judge Harry Tobias ordered the city to file a response by Jan. 5 for the Jan. 13 hearing.
As part of the same suit, Award Homes also claims Council members breached a confidentiality agreement during closed door talks by leaking information to the press. The firm is suing for $60,000 – their estimated cost for attorneys fees from those negotiations.
The firm requested depositions, or under oath testimonials, from all five Council members and requested they bring cell phone and e-mail records, according to the suit. Pursuit of the agreement extension, though, is the “number one item” of the suit, Nicoletti said.
Several Council members say they haven’t kept the requested documents.
“I haven’t done anything (to compile records),” LoBue said. “I’m not doing anything.”
