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NPJC: Foster City Update

NPJC: Foster City Update. May 26, 2011. Status . 3/17/11 Letter from City Development Director Richard Marks -Threat to declare default under lease due to NPJC failure to get building permit for Phase Two (Cultural Arts Center) by 1/08

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NPJC: Foster City Update

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  1. NPJC: Foster City Update May 26, 2011

  2. Status 3/17/11 Letter from City Development Director Richard Marks -Threat to declare default under lease due to NPJC failure to get building permit for Phase Two (Cultural Arts Center) by 1/08 -Threat to revoke NPJC’s free parking on 15-acre site (gravel lot) -Reminder of NPJC obligations to develop Phase Three by 2015 (not just remove modulars, but actually build childhood education center) -But… City still wants to negotiate re sale of site

  3. Status 3/23/11 Notice of Default from City Attorney Consequences claimed by City: - NPJC owes liquidated damages ($976,000) - NPJC rent increases - NPJC loses Cultural Arts Center site

  4. Status 4/18/11NPJC Response Letter (from Cooley) - NPJC disputes claim of default - City extended 1/1/08 deadline for Phase Two Building Permit to 5/1/10 - NPJC’s obligation to obtain a building permit by 5/1/10 was excused because it resulted from City’s failure to act timely on NPJC’s 12/18/09 permit application. City quietly rejected application on 6/8/10 without giving NPJC notice or opportunity to appeal. This was contrary to City obligation under ground lease to process permit application diligently. - Because NPJC not in default, City not entitled to return of Cultural Arts Center site, liquidated damages or increased rent. - City has no right to revoke NPJC’s rights to park on adjacent 15 acres, and must disclose those rights to prospective purchasers. - NPJC invokes mediation procedures under ground lease.

  5. Status May 3 City attorney Jean Savaree calls Cooley - City agrees to proceed to mediation - Commits to cooperate to schedule mediation as soon as possible, preferably by end of June. As of May 24 - Working on acceptable mediator - Not received letter from the City officially responding to our April 18 letter

  6. Mediation - Mediation is a negotiation where a third party neutral hired by the parties seeks to facilitate a voluntary agreement. - Typically takes place over the course of a long day at offices of mediator, with follow up calls and additional sessions if necessary. - Mediator’s role is to evaluate parties’ positions and help them reach a deal. - Lawyers typically prepare a brief setting forth their client’s position in advance. - Selection of skilled mediator important to success.

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