M&H Releases Statement on Lawsuit Against Elk Grove

The unfinished Outlet Collection at Elk Grove is at the center of litigation between M&H and the City of Elk Grove. November 12...

The unfinished Outlet Collection at Elk Grove is at the
center of litigation between M&H and the City of Elk Grove.
November 12, 2014 |

The following is a press release from M&H Realty

Elk Grove, CA (Nov. 12, 2014)  – Today, M&H Realty Partners released the following statement in response to filing a lawsuit in the Superior Court of California, for the County of Sacramento.

On October 28, 2014, M&H Realty filed a lawsuit to protect its vested rights in the development of a retail center in Elk Grove, California.  The lawsuit is in response to the City of Elk Grove adopting a major change to the Lent Ranch Special Area Plan, which governs the development rights of both Howard Hughes Corporation’s (HHC) and M&H Realty. The actions of the City and HHC are in violation of a 2001 Development Agreement. The City rewarded HHC for being in “default” of that agreement by approving a new project that undermines the economic viability of M&H’s approved retail center.

“When a party defaults on an agreement, it is not typical for them to be rewarded with a more generous deal,” said Mike Grehl, Vice President for M&H Realty. “We fail to understand why the city is picking winners and losers in the market, especially when we have honored our end of the agreement and waited patiently to develop our premiere shopping and commercial center.”

“We continue to believe in reaching a compromise that results in the development of two major retail centers that promise great shopping opportunities, jobs and new tax revenue for the City of Elk Grove,” said Grehl. “However, until that time comes, we are obligated to protect our investors and ensure that the City and Howard Hughes Corporation honor their agreements.”

Merlone Geier Partners is a private real estate investment company focused on the acquisition, development and redevelopment of retail and retail-driven mixed-use properties on the West Coast. Primarily focused on community and neighborhood shopping centers, Merlone Geier Partners and its predecessor, M&H Realty Partners, have been actively investing in West Coast retail property since 1993, acquiring to date 133 West Coast properties representing 22 million square feet.

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