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.
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Thursday, October 1, 2009
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