S.P. City Council: Tolling agreement a sticking point for CEDC settlement talks

January 30, 2009
Santa Paula City Council

A long Council discussion and remarks by several representatives of Cabrillo Economic Development Corporation did not resolve whether or not the two entities will meet to discuss ways to end the ongoing litigation over the Council-rejected Plaza Amistad project.

By Peggy KellySanta Paula TimesA long Council discussion and remarks by several representatives of Cabrillo Economic Development Corporation did not resolve whether or not the two entities will meet to discuss ways to end the ongoing litigation over the Council-rejected Plaza Amistad project. The issue was addressed at the January 26 Council meeting.The Council had requested additional financial information and answers to specific questions posed by Vice Mayor Jim Tovias related to CEDC, as well as to the 150-unit Plaza Amistad. City Manager Wally Bobkiewicz outlined CEDC’s response.Bobkiewicz also noted the Council had directed City Attorney Karl Berger to prepare a tolling agreement - a legal pause button - on CEDC’s appeal of their initial lawsuit against the city as well as a second action filed centered on discrimination issues, as a precursor to settlement discussions. Much of the discussion centered on the tolling agreement and the Council majority’s belief that the city is already home to a large amount of high-density, low-income units.Councilman Fred Robinson noted CEDC had signaled their board is “unwilling to enter into tolling agreement” until settlement talks have been entered and substantial progress shown by same. Robinson also questioned a CEDC representative’s statement that a tolling agreement related to Cabrillo’s appeal is not legally possible.Mayor Ralph Fernandez noted, “We’ve been advised by our attorney that it’s a very common practice” to enter tolling agreements, and he encouraged more discussion on the issue among CEDC board directors.Later Councilman Dr. Gabino Aguirre wondered if only the judge has the authority to approve a tolling agreement on cases being appealed. Berger said if the parties requested such an agreement it was possible: “I really don’t understand the argument that a tolling agreement is out of the question,” and the city would participate in CEDC requesting a stay on the appeal.
To date the city has spent $60,000 on CEDC’s initial lawsuit, and Robinson said costs continue to rise. “I for one am interested in ending this litigation” by sitting down to discuss alternatives. Robinson added he is “puzzled” by CEDC’s stance on the issue, and he would not participate in talks without a tolling agreement.When it came to Plaza Amistad itself, Councilman Bob Gonzales said many residents do not want a project that size on the approximately six-acre parcel. The city already has approved “too many” high-density plans, many of which, Gonzales said, were also low-income. Such projects, he added, put a financial strain on the community, schools, hospital and public services.Gonzales quoted from several newspaper articles regarding the initial lawsuit and CEDC Executive Director Rodney Fernandez’s comments regarding same. “I have talked well of the projects” created by CEDC, which Gonzales said are “well done, well managed and clean,” but high density creates negative impacts, including resident parking that spills over into surrounding neighborhoods.CEDC complexes in other cities contain far fewer units, and Gonzales asked CEDC representatives to “go back and talk to your colleagues” and tell them “we don’t want more high-density housing.” People do have the right to affordable housing, but not at the expense of the city: “I think at this time Santa Paula is at the saturation point” of high-density projects.“If you came in with 72 units,” Gonzales said he would be one of CEDC’s “best cheerleaders.” Gonzales said CEDC is “suing us for looking out for the best interest of Santa Paula.”The full Council voted to receive and file the report.



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