Elk Grove City Council To Discuss Litigation With Promenade Developer In Closed Session
City council to also conduct private performance review for city manager, attorney The Elk Grove city council will confer with legal counsel...
https://www.elkgrovenews.net/2009/08/elk-grove-city-council-to-discuss.html
City council to also conduct private performance review for city manager, attorney
The Elk Grove city council will confer with legal counsel during the closed session this Wednesday regarding the bankruptcy of General Growth Properties (GGP), the bankrupt developer of the unfinished Elk Grove Promenade.
What GGP owes Elk Grove; will recently rulings hurt city's ability to collect?
According to Elk Grove public information office Christine Brainard GGP owes the city $109,000 for road improvements and other infrastructure improvements.
In recent weeks GGP has won a number of favorable rulings in bankruptcy court. Specifically, a bankruptcy judge ruled that special purpose entities (SPE’s) owned by GGP, that were otherwise profitable operations, could be included in the broader filing.
Lenders fear this ruling could make it easier for real estate owners, such as GGP, to bend bankruptcy rules at the expense of financiers. It could shield liquidation of profitable assets to pay creditors in general. Normally in most bankruptcy proceedings creditors often only get pennies on the dollar.
Chicago-based GGP’s bankruptcy is believed to be the largest real estate bankruptcy in American history with its April, 2000 chapter 11 filing. Construction of the Elk Grove Promenade halted last summer just prior to the international credit market meltdown.
The closed session agenda also includes a employee performance evaluation of city manager Laura Gill and city attorney Susan Cochran.
Posts
6 comments
EG won't get a cent. That's the bottom line. EG will have to eat the cost.
I would say that Elk Grove already ate the cost...the cost of having a wind swept, dirt choked, barren wasteland mall announcing to freeway passers-by how not to build a city.
OK, dollars will also be lost, too...
Thank you Insania and everyone can thank Lisa Lent for pushing this issue of the mall. Look in the archives of the Elk Grove Citizen to see who was at the ground breaking ceremony. This is the TRUTH!
RIP Mall....Lent Ranch Blvd is Elk Grove's road to nowhere!
My guess is that GGP will (or already did) seek bankruptcy court approval of bonuses for their key executives in Chicago. It's clear that the retention of these key players is of paramount importance -- to ensure GGP emerges from bankruptcy protection better suited to engage in mall building in our "new economic paradigm."
And if that means Elk Grove is entitled to 3 cents instead of 4 cents on the Chapter 11 dollar, well, we Elk Grovians should feel grateful for that.
Secondly, I must admit a total ignorance of Lisa Lent and the history surrounding this dead mall...a lot of comments are posted here on EG News regarding her dealings, etc. Seems to me a little misguided...only because I think Elk Grove would have engaged in bad mall building on former farmland/grazing land regardless.
My bias is clear; I am not a fan of our one dimensional strip mall/low density city. The Promenade is just one more slice of the same bad urban planning pie we're being forced fed.
I was more than a little interested that the city manager and city attorney were being brought back for evaluation such a short time after they got that vote of confidence and a six month reprieve. New issues?
Post a Comment