4/1/1997 - Laserfiche WebLink

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Deputy County Attorney Will Collins briefly reviewed the facts for the Board, explained the Murphy Act Deeds, and stated that it is staff's recommendation that the Board ratify the decision to rescind the traffic impact fee credits, notify our title insurer that there is a pending claim and litigation, and authorize defense of the forthcoming suit. The court could declare the respective rights of the parties. If we simply agree to give the impact fee credit at this point, Attorney Collins did not believe the County would have a valid claim against the title insurance. Bruce Barkett, Attorney representing West & Associates, stated this was essentially a simple agreement - a land -for -money swap. A portion of the purchase price was to be paid in cash and the balance was to be paid in impact fee credits. The question today is whether or not the Board should honor the agreement made with Oslo Plaza Associates. The discovery that the State had reserved an easement for right-of-way over a portion of the property was always a matter of public record. Public Works Director Jim Davis has rescinded the traffic impact fee credits which is an absolute, unqualified breach of contract. The County got more than its fair value for the property which is now valued at approximately $295,000. Attorney Barkett continued that since 1988 Oslo Plaza has paid over $300,000 in taxes on this parcel and after development the property should generate $100,000 a year in taxes which is about equal to the traffic impact fee credit. These funds will go directly for the improvement of the Oslo Road and 27th Avenue intersection, which is currently functioning at a below -acceptable level of service. The developer is being held up until the intersection is improved. The developer will improve the intersection regardless of the decision reached today. The impact fee credits will be used for these improvements and he asked that the Board honor the contract, by at least giving the impact fee credits for Phase I of the development plus the gas station, which would be approximately $92,000. Harold Melville, litigation counsel for Oslo Plaza Associates, stated that essentially a contract was entered into 1990 between the County and the then owner of the property, Oslo Plaza Associates. Oslo Plaza Associates fully performed its portion of the contract by conveying title to the County. 5 to 7 years later the County felt it had made a bad bargain and decided not to honor the agreement. If the County has a remedy in this matter, it can seek rescission of the contract in the court system on the theory PAGE 53)5 - APRIL, 1, 1997 49