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SunCal’s Failed Measure B Cost City of Alameda $279,629.61. City Asks SunCal to Pay

According to a letter sent to SunCal by the City of Alameda, SunCal’s failed February 2, 2010 Measure B ballot measure election cost the City $279,629.61. The Interim City Manager Ann Marie Gallant is asking SunCal to make good on an offer to pay for the special election.

In the April 20, 2010 letter, Interim City Manager Ann Marie Gallant writes “during various negotiation meetings last fall, payment for this special election was discussed with the SunCal negotiation team, but the City received no final confirmation that SunCal would reimburse the City for these costs. The purpose of this correspondence is to request SunCal’s final decision in this regard.” The letter documents a breakdown of expenses for the election totaling $279,629.61.

At a Measure B forum earlier this year, sponsored by the League of Women Voters, SunCal representative Pat Keilher told the audience that SunCal would pay for the election if the Measure passed. Measure B failed with 85% of the electorate voting against it. No word yet from SunCal on whether or not they will foot the bill.

Also sent to SunCal this week by the Interim City Manager was a letter that, among other things, deemed as “insufficient” SunCal’s estimate of roughly $17 million in mitigation for negative fiscal impacts on the City’s general fund as a result of their Modified Optional Entitlement Application plan for Alameda Point. The negative fiscal impacts would violate the City’s fiscal neutrality policy, which requires all development projects to contribute to the City’s General Fund as much money as they take out.

The letter also questioned how SunCal translated a 35% density bonus on a 21.78 dwelling unit per acre plan into a 50 dwelling unit per acre plan, and SunCal’s “aggressive assumptions” for finished unit price increases, land value increases, and residential sale prices.

In a third letter, from the City Attorney, the City acknowledges that SunCal has cured their default under their Exclusive Negotiation Agreement (ENA) with the City, but refutes SunCal’s previous “letter of reservations” sent to the City.

All three letters are reproduced below.

City of Alameda Letters to SunCal April 20 2010

2 comments to SunCal’s Failed Measure B Cost City of Alameda $279,629.61. City Asks SunCal to Pay

  • Barb

    If SUNCAL doesn’t make good on its offer to pay, why would anyone believe anything SUNCAL said about anything? Oh, you’re right, less than 15% do anyway. So the to remainging 14 % call your favorite SUNCAL leader or Kathy Moehring and demand the money. It could save a couple of city employees jobs, maintenance on our streets, or any number of things that SUNCAL is forcing the city to do without because of its greed. Hats off to Ann Marie!

  • Vania

    Given all the money SunCal is having to pay for attorneys fees in California and New Mexico, to fight off lender foreclosures, I doubt SunCal will want to utilize $279,000+ of their hard earned cash to reimburse the city.

    As I’ve said over and over, the “SunCal side” of each of the SunCal Companies is owned by Bruce & Steve Elieff. If you look at the documentation for the SunCal entities which has shown up in the bankruptcy court records, you can clearly see that lowly people like Pat Keliher and Frank Faye have no authority to bind the Elieffs and their company to pay for anything.

    I simply cannot understand why the partisans for SunCal’s Alameda Point, who are not SunCal employees, are so fundamentally STUPID that they believe that the Elieffs will approve payment for anything.

    An illustration of how dumb these SunCal partisans. like Lena Tam, are: It’s as if they are trying to sell their own personal car for $5000. Their local deadbeat neighbor shows up at the door, and says “Give me the pink slip and the car now. I’ll pay you in cash next month when I get money from my Aunt Myrtle’s estate.” Few people would be stupid enough to do that, in selling their own car. So why believe that a stranger, with a history of stiffing creditors in 31 bankruptcies (so far) is going to come back with the $5000 cash, when he already has your car and its pink slip.

    Dumb, dumb, dumb.

    Unless bribery of those “selling” Alameda’s asseets is involved.