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1 <br />2 <br />3 <br />4 <br />5 <br />6 <br />7 <br />8 <br />9 <br />10 <br />11 <br />12 <br />13 <br />14 <br />15 <br />16 <br />17 <br />18 <br />19 <br />20 <br />21 <br />22 <br />23 <br />24 <br />25 <br />26 <br />27 <br />28 <br />RESOLUTION NO. R-166-05 <br />A RESOLUTION OF THE CITY OF COLTON APPROVING A SETTLEMENT AGREEMENT <br />BETWEEN THE CITY OF COLTON, THE REDEVELOPMENT AGENCY FOR THE CITY <br />OF COLTON AND COLTON NON-PROFIT INC. <br />WHEREAS, on July 18, 1989, the Redevelopment Agency for the City of Colton (the <br />"Agency") approved a Disposition and Development Agreement with Cooperative Services, <br />Inc. (CSI) as the agent, and Colton Nonprofit Senior Housing, Inc. (Colton Non -Profit) as the <br />owner, to construct a 101 -unit senior housing complex. Colton Palms Senior Housing <br />Project was completed on August 6, 1991; and <br />WHEREAS, in 1999, Colton Non -Profit and the Agency initiated litigation against <br />Turner Construction and Valerio Architects for construction defects in the building; and <br />WHEREAS, a claim against Valerio Architects was settled and final payment of <br />$247,519.48 was received by the Agency in February 2002; and, <br />WHEREAS, in early 2003 Turner Construction settled with Colton Non -Profit and <br />the Agency with a final payment of $5,500,000; and <br />WHEREAS, A dispute has arisen between the City and the Agency, on the one hand, <br />and Colton Non -Profit, on the other hand, with respect to, inter alia, (1) ownership and control <br />of Colton Palms, and (2) ownership of the Turner Settlement Funds and the Turner <br />Settlement Earned Interest. On April 5, 2004, the Agency and the City filed an action against <br />Colton Non -Profit in the Superior Court of the State of California, County of San Bernardino <br />(the "Court"), entitled Redevelopment Agency for the City of Colton v. Colton Non -Profit <br />Senior Housing, Inc., Case No. SCV SS114148 (the "Agency's Action"). The complaint the <br />("Complaint") alleged, inter alfa, that Colton Non -Profit's reletting of vacant units at Colton <br />Palms constituted waste and sought a temporary restraining order enjoining Colton Non - <br />Profit from leasing any vacant units at Colton Palms (the "TRO"), which was later entered by <br />the Court. Colton Non -Profit filed an answer to the Complaint on May 6, 2004 (the "Answer") <br />generally denying all allegations made in the Complaint. On July 13, 2004, the Agency filed <br />