Posted on 05/17/2009 9:36:46 AM PDT by glorgau
Two of Northern California’s top bankruptcy attorneys will visit Half Moon Bay Tuesday to explain to the City Council how it could go about filling Chapter 9 bankruptcy, said Mayor John Muller. The council is exploring ways to pay an $18 million settlement over a land dispute. It is pursuing state legislation for a loan, but if it cannot raise the cash soon it will be forced to pay developer Charles “Chop” Keenan the full amount before the end of the year. The settlement threatens to bankrupt the city. State Sen. Leland Yee, D-San Francisco/San Mateo, and Assemblyman Jerry Hill, D-San Mateo, are working together on legislation that would require the California Infrastructure and Economic Development Bank, a low-interest financing authority, to loan the city $10 million as soon as the bill is signed into law. The bill SB/AB 650, recently passed out of the Local Government Committee, but hit a bump in the Senate Natural Resources and Water Committee when the chair questioned the use of the “I-Bank” to loan money to the municipality. The bill continues to change as legislators seek its passage. It started as a $10 million allocation from Proposition 84, the park bond, to Half Moon Bay for the preservation of the disputed property. It was then changed to a loan, but may not meet “I-Bank” requirements. Former state assemblyman Gene Mullin also attempted to pass legislation previously to ease Half Moon Bay’s financial hardship. Options seem to be running out for Half Moon Bay, but Muller is still hopeful. “I’m very confident [that legislation will be passed]. I have to be,” Muller said. Without legislation, the city is seriously considering filing Chapter 9 bankruptcy, essentially following in the footsteps of Vallejo. The lawyers at Tuesday’s meeting includes one that represents Vallejo and will explain the bankruptcy process and “how difficult it is,” Muller said. Unlike Chapter 10 or Chapter 11, a municipality faces stricter regulations for filing for bankruptcy and must still pay all its debts, Muller said. The meeting is informational and no decisions will be made. However, Muller suggests any resident who thinks bankruptcy could be an easy out for the city should attend, he said. Half Moon Bay spent more than a decade in a legal dispute with Keenan over the Beachwood property. In 2007, Half Moon Bay was slapped with a $41 million federal judgment for trying to prevent development on the property by allegedly making it into wetlands. That judgment was later dropped when Keenan agreed to a settlement that allowed the city to pursue state legislation allowing him to build on the site or else pay him $18 million. The Half Moon Bay City Council meets 7 p.m. Tuesday, May 19 at the Ted Adcock Community Center, 535 Kelly Ave.
oops, sorry about the paragraphs.
Two of Northern California’s top bankruptcy attorneys will visit Half Moon Bay Tuesday to explain to the City Council how it could go about filling Chapter 9 bankruptcy, said Mayor John Muller.
The council is exploring ways to pay an $18 million settlement over a land dispute. It is pursuing state legislation for a loan, but if it cannot raise the cash soon it will be forced to pay developer Charles “Chop” Keenan the full amount before the end of the year. The settlement threatens to bankrupt the city.
State Sen. Leland Yee, D-San Francisco/San Mateo, and Assemblyman Jerry Hill, D-San Mateo, are working together on legislation that would require the California Infrastructure and Economic Development Bank, a low-interest financing authority, to loan the city $10 million as soon as the bill is signed into law.
The bill SB/AB 650, recently passed out of the Local Government Committee, but hit a bump in the Senate Natural Resources and Water Committee when the chair questioned the use of the “I-Bank” to loan money to the municipality.
The bill continues to change as legislators seek its passage. It started as a $10 million allocation from Proposition 84, the park bond, to Half Moon Bay for the preservation of the disputed property. It was then changed to a loan, but may not meet “I-Bank” requirements. Former state assemblyman Gene Mullin also attempted to pass legislation previously to ease Half Moon Bay’s financial hardship.
Options seem to be running out for Half Moon Bay, but Muller is still hopeful.
“I’m very confident [that legislation will be passed]. I have to be,” Muller said.
Without legislation, the city is seriously considering filing Chapter 9 bankruptcy, essentially following in the footsteps of Vallejo.
The lawyers at Tuesday’s meeting includes one that represents Vallejo and will explain the bankruptcy process and “how difficult it is,” Muller said.
Unlike Chapter 10 or Chapter 11, a municipality faces stricter regulations for filing for bankruptcy and must still pay all its debts, Muller said.
The meeting is informational and no decisions will be made. However, Muller suggests any resident who thinks bankruptcy could be an easy out for the city should attend, he said.
Half Moon Bay spent more than a decade in a legal dispute with Keenan over the Beachwood property. In 2007, Half Moon Bay was slapped with a $41 million federal judgment for trying to prevent development on the property by allegedly making it into wetlands. That judgment was later dropped when Keenan agreed to a settlement that allowed the city to pursue state legislation allowing him to build on the site or else pay him $18 million.
The Half Moon Bay City Council meets 7 p.m. Tuesday, May 19 at the Ted Adcock Community Center, 535 Kelly Ave.
“What goes around, . . .
“You reap what . . .
I don't know about hmb, but just about every municipality I've seen has been freaking smug since the half-wits that run 'em started smoking crack at their annual, nationwide get togethers.
And they've also all had it coming for a very long time. And not one of thier "CEO's" will ever do a perp walk, much less prison time.
wasn’t it Half Moon Bay that decided that after school homework assignments were too onerous for their children and stopped the practice, or at least discussed doing so?
Except it will be the taxpayer who will foot their bill.
The problem was entirely created by the city government, and now they get to go broke.
So sad, too bad.
I think the judgement should go against every elected member of the city government PERSONALLY. They all need to be destroyed financially. Arrogance of government is astounding. Fight fight, obfuscate, cheat, dissemble, lie, lie and lie some more. They all should be cleaned out of every cent and valuable property they own for interfering with the rights of another for personal/political reasons. I hope they end up homeless.
I would vote for that.
Does this mean that “Chop” Keenan gets the keys to City Hall? Can he turn it into a condo?
As it should be. The taxpayers put them in there.
Bankrupt state, bankrupt city, morally bankrupt Senator.
L
In the general neighborhood where you live, no?
Thought it might be of interest insofar as Astoria's possible future.
City needs to be made to pay the developer every dime, plus interest.
If the locals don’t like it, let them “discuss it” with their high-handed local officials.
I have worked with a number of city councils and most of them are smug, arrogant, and self aggrandizing, fully believing that nothing that they do can be wrong simply because they vote it so.
Half azz Moon bay can pony up for as long as it takes.
Maybe the voters will bring forth a new type of Representative, one who is not so cavalier with the taxpayers money. - but I doubt it.
Chapter 9 Bankruptcy is at the federal level. Please explain why the rest of the US has to pay for this town's stupidity.
They should just raise taxes. :)
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