Negotiations between Hollister officials and Award Homes have
stalled, which could revive a shelved lawsuit filed two months ago
by the developer to force extension of an agreement on the proposed
677-home West of Fairview project, according to sources close to
the talks.
The company initially filed a suit in late August because of
frustrations over the talks and distrust in City Council members’
confidentiality of the negotiations, according to court documents.
The two sides then agreed to put the litigation on hold while they
continue bargaining, officials later confirmed.
Negotiations between Hollister officials and Award Homes have stalled, which could revive a shelved lawsuit filed two months ago by the developer to force extension of an agreement on the proposed 677-home West of Fairview project, according to sources close to the talks.
The company initially filed a suit in late August because of frustrations over the talks and distrust in City Council members’ confidentiality of the negotiations, according to court documents. The two sides then agreed to put the litigation on hold while they continue bargaining, officials later confirmed.
This week, after a meeting billed as crucial turned out ineffectual, the city asked the company to return with another offer within two weeks, according to a city source. Some officials have privately said it signals an end to the negotiations and a reawakening to the likelihood a judge will decide the agreement’s fate.
“Several members are fed up,” said one irritated official.
City leaders and Award Homes officials have met behind closed doors for the past nine months as the developer has proposed several added conditions to sweeten the development deal.
The Council approved the original three-year agreement in October 2000. Since then, it has been jeopardized because of Hollister’s building moratorium that bans construction permits until 2005. The state-mandated cease and desist order stems from a 15-million gallon sewer spill in May 2002.
Meanwhile, the contract expired in September, but when the two sides agreed to postpone the suit they also agreed to an “open extension” to the deal as long as they continue negotiating an extended agreement.
Three of the five Council members – Mayor Brian Conroy, Robert Scattini and Pauline Valdivia – do not support a deal, according to sources. Council members Tony Bruscia and Tony LoBue, meanwhile, are reportedly open to an agreement.
City officials have been advised not to comment on the matter and have declined public comment. City Attorney Elaine Cass only confirmed the open extension to the deal while the two sides negotiate, and that the suit is pending. Beyond that, she declined comment.
It has previously been confirmed Award Homes offered an additional $2 million cash, more affordable housing units in the development and a financial contribution toward construction of Fire Station 2, according to the firm’s development manager Michael Van Every.
Van Every, however, is no longer a spokesman for the company, and its attorney William Ross did not return phone calls to his offices in Palo Alto and Los Angeles.
The once-estimated $250 million project would include a 127-acre subdivision next to St. Benedict’s Catholic Church off Fairview Road and north of Airline Highway.
Award Homes has already sued the Local Agency Formation Committee – which annexes county property into the city – after LAFCO denied the annexation of the property. The suit, which is still pending, was for $56 million.
