Developer signed indemnification agreement to pay for
attorneys
San Benito County is pursuing reimbursement for $110,000 in
legal costs related to the lawsuit challenging the Spur Hotel
project. But in the meantime, supervisors have agreed to transfer
the money from the general fund reserve as they request the amount
from the hotel developers.
Developer signed indemnification agreement to pay for attorneys
San Benito County is pursuing reimbursement for $110,000 in legal costs related to the lawsuit challenging the Spur Hotel project. But in the meantime, supervisors have agreed to transfer the money from the general fund reserve as they request the amount from the hotel developers.
The ordeal began in October 2007, when supervisors voted 3-2 to approve a change from residential to commercial zoning for the proposed hotel site, near the intersection of Hwy. 25 and Southside Road, in Tres Pinos. At the time, the county planning department provided the board with a document stating that all of the hotel’s environmental impacts could be mitigated.
A group of residents opposing the project – they referred to themselves as the Friends of Tres Pinos – filed the suit in late 2007 challenging its progress without a full environmental review. Supervisors before its filing had agreed to move ahead with a piecemeal review as opposed to a more comprehensive EIR.
According to court documents, the suit was against San Benito County, the San Benito County Board of Supervisors and hotel developers Jae and John Eade. The Friends of Tres Pinos were asking the county to cancel its previous project approvals and “comply with all provisions of the (California Environmental Quality Act), local and state planning laws and other applicable laws prior to further consideration of the project.”
The Eades followed up by signing an indemnification agreement with the county, which contracted with the law firm Hoge, Fenton, Jones & Appel for the civil case’s defense.
Costs for the firm’s services initially came to $141,000 but have been reduced to $110,000 through recent talks among the parties. That is the amount supervisors agreed in a 4-1 vote Tuesday to transfer from the general fund reserve to pay the attorneys.
Supervisor Margie Barrios after the meeting noted how she voted against the approval because she wanted the county and attorneys to have more time to negotiate over the due amount – “to allow that opportunity for people to continue to talk about it.”
A county staff report on the matter also noted that San Benito should be fully reimbursed – while pointing out that the money would come from the reserve if the funds are not recovered.
The Eades could not be reached for comment before press time.
