After the City Council voted to back out of a 1997 developments agreement, Mammoth Lakes was hit with a $30 million judgment which has been upheld by a California appellate court. As the L.A. Times story says, "The court found that the town did not live up to its end of the bargain." Mammoth Lakes City Council is now looking at municipal bankruptcy as an option.
Sound familiar?
Chevron filed suit against the City of Fullerton when the City Council voted 3-2 to back out of a development agreement with the company.
Assuming the new council members, Bruce Whitaker and Patrick McKinley, vote to approve the various entitlements to Chevron, the suit could be dropped. It does, however, call into question the process in which councils enter into development agreements and the long-term ramifications of not honoring their contracts.
Hmm.....
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