Video: M&H Realty Accuses Elk Grove, Howard Hughes of Conspiracy in Outlet Collection at Elk Grove

September 20, 2014 | At the Thursday, September 18, meeting of the Elk Grove Planning Commission, the City of Elk Grove and the Howar...

September 20, 2014 |

At the Thursday, September 18, meeting of the Elk Grove Planning Commission, the City of Elk Grove and the Howard Hughes Corporation (HHC) were accused of conspiracy. The claim came from attorneys representing M&H Realty Partners.

At their meeting, the planning commission voted to release HHC from the development agreement thereby allowing them to proceed with development of the proposed outlet shopping center. According to M&H's attorneys, they are still bound to that agreement and were not included in the negotiations the led to the relief for HHC.

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Mellisa said...

It looks as though the city has stepped on the collective pee-pee's again. Can't they do anything right?

If I read this correctly, the city entered into a SPA with M&H and Gen Growth ( now HHC) and after Gen Growth defaulted when they declared bankruptcy, instead of filing suit for breach of contract, the city passed hoping to stay on the "good side" of the developer (I believe there is a pattern emerging here), and when HHC stepped in, the city, with their blinders on, negotiated a new deal with HHC solely, ignoring the other party to the SPA, M & H.

Not only that, the new contact seemingly diminishes M& H's potential client base for their properties by allowing HHC to fill their storefronts with likely M& K tenants.

Is Jon Hobbs asleep at the wheel here? Tell me he didn't know the SPA had 3 parties to the agreement, not two and that all three would have to agree to any modifications.

This city and it's governance is just so inept and ineffective, nothing seems to ever get done.

If M&H want to they can tie the mall property up with litigation for another two years or so. By the time it's approved and built out no one will shop via malls. It will all be done on-line. EG will have missed the boat again....

Anonymous said...

Great info...same I got when seeking some info from someone with legal expertise.

There's always the possibility that HHC assumed M & H were in agreement and proceded, but that's a little far fetched with their battery of lawyers. I believe it was a gamble the city and HHC were willing to take in their quest to get a Mall at any cost. So where does this go now...maybe just another story for the books on how EG operates...on the fringe or in the courts. Nothing much different, same story over and over.

Anonymous said...

Perhaps the city will just throw M&H a little tax free bonus or provide additional land somewhere else or maybe M&H gets to build their next project without all those pesky environmental or design reviews that are required. I see the city negotiating with M&H to stay out of court....let's see how good M&H are at twisting the balls of the city. M&H will do just fine in the end.

Col. Nathan R. Jessup said...

Anon 10:33 - you nailed it.

I can hear in now:

Hobbs: We are in danger
Davis: Grave danger?
Hobbs: Is there another kind?

Connie Conley said...

M & H Realty Partners were precluded from building until a major portion of the mall was completed. It was then that plans were for a Costco, Sam’s Club and/or other big box stores. In my opinion, they have kept their end of the bargain.

Had they known this “sham” as the attorney said was going to occur, and there was going to be a breach of contract, what would have transpired if M & H had just gone ahead and built the big box Mecca, started making big money, and Elk Grove would certainly have reaped the benefits from the sales tax revenue. Don’t you think Howard Hughes Corp.(HHC) would have had a major hissy fit?

So why is it okay for the city of Elk Grove and HHC to breach the contact, as alleged, and not be held to answer?

EG Voter said...

This pattern of inaptitude is beyond embarassing. It is officially over! Over the past year we have seen failure, after failure on the part of this council and the executive staff of our city (and if these were all intentional tactics on their parts, then we should have stormed the gates of city hall a long time ago). The feasibility studies, the $6 million purchase of land outside city limits on our behalf without our input, the multitude of closed sessions, and pending litigation! Laura Gill and the rest should be fired (she lives in eldorado hills, so her home equity & quality of living are not at risk) and the council members should be tossed out. Someone needs to get begind some write in candidates and grass roots the $&it out of it and impeach the rest!

"I'm mad as hell and I'm not going to take this anymore!"

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