HomeMy WebLinkAboutMINUTES - 05222012 - C.78RECOMMENDATION(S):
RATIFY the Public Works Director’s execution of a letter releasing LV Delta Coves LLC in connection with
improvement agreements for Delta Coves project (Subdivision 6013) in connection with the transfer of the property,
Bethel Island area. Supervisor District No. III.
FISCAL IMPACT:
No fiscal impact.
BACKGROUND:
The Delta Coves subdivision was approved in 1989 for 560 dwelling units on Bethel Island. In 2006 the project was
acquired by Delta Coves Venture LLC, who entered into substitute subdivision agreements and posted new bonds to
replace those entered into by the original developer and which are now expired (as described in the release letter, the
“Improvement Agreements”).
As a result of the real estate market downturn, all
APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
Action of Board On: 05/22/2012 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF SUPERVISORS
AYE:John Gioia, District I Supervisor
Mary N. Piepho, District III Supervisor
Karen Mitchoff, District IV Supervisor
Federal D. Glover, District V
Supervisor
ABSENT:Gayle B. Uilkema, District II
Supervisor
Contact: Slava Gospodchikov (925)
313-2316
I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of
Supervisors on the date shown.
ATTESTED: May 22, 2012
David Twa, County Administrator and Clerk of the Board of Supervisors
By: June McHuen, Deputy
cc: Slava Gospodchikov
C.78
To:Board of Supervisors
From:Julia R. Bueren, Public Works Director
Date:May 22, 2012
Contra
Costa
County
Subject:RATIFY execution of a letter releasing LV Delta Coves LLC in connection with improvement agreements for Delta
Coves project.
BACKGROUND: (CONT'D)
work on the project has been suspended and Delta Coves Venture LLC is in bankruptcy. Pursuant to a bankruptcy
court order, LV Delta Coves LLC (“LV Delta”), a Lehman Brothers subsidiary, owns the project. LV Delta has held
title to the project property only since April 27, 2012, and its sole asset is the project.
SDC Delta Coves, LLC (“SDC”), is seeking to purchase the project from LV Delta pursuant to a purchase option it
holds. Although the Improvement Agreements are expired and LV Delta was never a party to the agreements, LV
Delta is conditioning its sale of the project to SDC on the County’s release of LV Delta under the Improvement
Agreements.
SDC advised County staff that the sale of the project scheduled to occur on May 14, 2012, would not occur if the
County did not release LV Delta from any liability in connection with the Improvement Agreements. The Public
Works Director executed the letter releasing LV Delta from liability and obligation under the Improvement
Agreements and now seeks ratification of the execution of the letter. The release of LV Delta is only effective if the
transfer of the project occurs and SDC becomes the owner of the project.
CONSEQUENCE OF NEGATIVE ACTION:
Since the County’s release of LV Delta of any liability and obligations under the Improvement Agreements is a
condition of the project transfer, the transfer of project may not occur if the Public Work Director’s execution of the
release letter is not ratified. The Delta Coves project would remain in the abandoned state and development of the site
may not resume.
CHILDREN'S IMPACT STATEMENT:
Not Applicable.