http://lansner.ocregister.com/2011/03/11/o-c-led-buyers-sue-calif-over-killed-deal/102957/
An Orange County-led consortium of investors who had the winning bid to buy 11 state-owned office properties around California have sued the state for breach of contract after Gov. Jerry Brown killed the deal.
California First LP, a group pulled together by Rich Mayo of Irvine-based Spyglass Realty Partners, had bid $2.3 billion to buy the state government buildings, then lease them back to the state for up to 50 years.
Gov. Arnold Schwarzenegger endorsed the deal as a way to generate $1.2 billion to help close a gargantuan state budget deficit. The deal included the sale of the California Supreme Court buildings, the complex for processing state property taxes as well as headquarters for the state Public Utilities, emergency operations, justice, health and education departments.
Brown called the deal short-sighted. However, California First shot back, arguing that “a deal is a deal.” California First attorney Stuart Liner said:
O.C.-led buyers sue Calif. over killed deal
March 11th, 2011, 3:46 pm · 6 Comments · posted by Jeff Collins
An Orange County-led consortium of investors who had the winning bid to buy 11 state-owned office properties around California have sued the state for breach of contract after Gov. Jerry Brown killed the deal.California First LP, a group pulled together by Rich Mayo of Irvine-based Spyglass Realty Partners, had bid $2.3 billion to buy the state government buildings, then lease them back to the state for up to 50 years.
Gov. Arnold Schwarzenegger endorsed the deal as a way to generate $1.2 billion to help close a gargantuan state budget deficit. The deal included the sale of the California Supreme Court buildings, the complex for processing state property taxes as well as headquarters for the state Public Utilities, emergency operations, justice, health and education departments.
Brown called the deal short-sighted. However, California First shot back, arguing that “a deal is a deal.” California First attorney Stuart Liner said:
“Like any other person or entity, the State of California has to live up to the contracts it enters. The State negotiated and signed a contract with California First and has no right to back out of the deal. California First met its obligations every step of the way and we intend to compel the State to live up to their end of the contract.In a press release issued today, the partnership said further:
“California First satisfied its commitments to the State, which is why the State accepted California First’s offer in the first place, and California First remains ready and able to perform the contract. We believe the DGS (state Department of General Services), the Legislature and the Governor got it right two years ago when, in light of the financial circumstances that California is facing, it concluded that this $2.33 billion deal is in the best interests of the state and its 34 million residents.”
“California First seeks an order from the court requiring the State to sell the eleven (11) properties that comprised the initial sale-leaseback bid authorized by the legislature in July 2009, which includes properties in Los Angeles, Oakland, Sacramento, and San Francisco. AB 22, the authorizing legislation, was approved overwhelmingly by the legislature (37-0 in the Senate, 76-3 in the Assembly) and signed as an urgency measure by then-Governor Schwarzenegger.”More on the state office building sale:
- O.C. investors part of $2 billion state building sale
- What $2 billion buys in state property
- Property sale may cost state $569 million
- State buildings: Pay me now or pay me later
- Santa Ana mayor says $500,000 fee not on the table
- Finders fee disputed in state real estate deal
- Gov. kills property sale to O.C.-led investors
