Page 2: In case you were wondering …
… Just how much the Town got screwed in this airport litigation, consider this.
In 2008, the initial judgment awarded to MLLA (Mammoth Lakes Land Acquisition) by a Mono County jury was $30 million.
As The Sheet reported in its April 19, 2008 issue regarding the argument over valuation of Hot Creek’s development rights [for a 310-unit hotel-condominium project], “The defense [Town] looked like it got its expert witness [Thomas Morone] from Experts ‘R Us.”
A few weeks ago, I met Ward Jones for a drink up at the Smokeyard and he confirmed Morone’s incompetence.
Jones mentioned that when he sold the three corners property (at Main and Minaret) to Goodman Real Estate back in 2006, the price was about $70 million, and came with development rights for approximately 700 units.
Which is literally the same valuation placed upon Hot Creek’s development rights, approximately $100,000/unit.
Except the properties aren’t at all comparable. “It [Hot Creek] wasn’t in the Village, wasn’t near a lift, didn’t have amenities. To get into town, you’d have to rent a car or call a cab … “ said Jones. “It’s not even close.”
Second point. MLLA and Terry Ballas approached Mammoth Mountain about purchasing their D.A. (Development Agreement) in 2006. The asking price? $20 million. Translation: They would’ve settled for $12 million or less.
…nothing like 20/20 hindsight! Now where did we put that Time Machine????
The word on the street is that Ballas was willing to settle for in the $7mil range. It has been largely obfuscated that Ballas did reportedly put in the neighborhood of $15mil into the airport, with the option in question constituting the consideration for such. Point being; the town clearly owed Ballas a major chunk of change.
Rumor has it that counsel with whom the town initially consulted readily identified TOML’s financial liability, and recommended settlement. But, as is all too often the nature of the attorney-beast, the town continued to seek advice from alternative counsel until they found one who would validate their weak case for non-payment, and suggest the substantial possibility of a legal victory.
By all accounts, TOML was in the wrong on this, and should have been talking settlement from the get-go. This matter couldn’t possibly have been handled more poorly, at every level…
It’s called “trying to make a silk purse out of a sow’s ear”. Its the same as the Town leaders defrauding the guy by telling him they could deliver (allow him build his time share hotel) when they already had been told by the FAA it would not be allowed. That was the finding of the appelate court whose decision stated that the developer had built between 17 and 19 million in improvements. Just like the sow’s ear purse, the politicians try to make it look pretty but it stinks to high heaven!
Where is your “Mammoth Vision” today Mr. Woods? The air is thin in Mammoth. Maybe it was just a pipe dream.