The Capistrano Unified School District was served with a lawsuit filed by Whispering Hills LLC, the development company operated by Dennis Gage in partnership with CALPERS, the California Public Employees Retirement System. The suit seeks to obtain $6 million from CUSD, a sum equal to the final payment due under the Purchase Agreement for the San Juan Hills High School site.
CUSD's past position on this matter has been that the District is not obligated to make the final payment until the Whispering Hills sub-division is built and CFD (or "Mello-Roos") bonds can be issued to raise the needed money. Of course, the sub-division is not yet built because Whispering Hills LLC failed to build it!
In a related transaction, CUSD owes the City of San Juan Capistrano more than $1 million in utility fees arising from the construction of SJHHS. The CFD Bonds were also intended for this purpose, but since no money can be raised, this bill remains unpaid.
Thursday, October 1, 2009
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3 comments:
Maybe now that Dennis Gage and Whispering Hills LLC has filed a lawsuit about what he thinks CUSD owes him, CUSD can couter-sue for the $6 million that CUSD paid to landscape Dennis Gage's Whispering Hills property. That's not even including the cost of street improvements that Dennis Gage and WH LLC was obligated to pay for, but that was instead paid by CUSD.
CUSD also paid to improve (stabilize) the slope owned by Gage/WH LLC, that CUSD wanted to use for their stadium bleachers.
The list of CUSD-paid improvements to Gage's private property is well documented. I just hope the trustees approve a counter suit to finally bring this out into the open. It's about time that Gage was made to pay up.
You lay down with dogs, you wake up with fleas, I tried to warn the district that doing business with those folks would cost them dearly. This was the old trustees.
No offence to dogs
Lon
I too have witnessed the more than shady dealings of this man! A counter suit is more than appropriate. His lawsuit is as full of holes as that land!
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