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ORAL COMMENTS FOR MEETING OF 3/16/93 <br />Joint Meeting of the City Council of the City of Colton <br />and <br />The Redevelopment Agency for the City of Colton <br />CONSIDERATION OF THE COMPROMISE SETTLEMENT <br />AND MUTUAL RELEASE AGREEMENT <br />This joint meeting has been called to consider a Compromise, <br />Settlement and Mutual Release Agreement between Taco Bell, the Moss <br />Family, the City of Colton, the RDA and several other parties <br />involved in the development of the of the outparcels. <br />As background for the audience and the record since early 1990, <br />the Agency has been implementing a plan todevelopthe Kmart <br />property and the outparcels which are located in the grassy area <br />bordered by the Kmart parking lot and Mt. Vernon, and Washington <br />Street and Centerpointe. While Kmart has been in business for over <br />a year, the progress of the development of the outparcels has been <br />impacted by the filing of a lawsuit against the City and the <br />Agency, Jack-in-the-Box, Colton, Ltd (original land owners), Kmart, <br />Camden (the developer of the outparcels). The lawsuit which was <br />filed by Taco Bell attempted to establish the presence of a <br />restrictive covenant which would prohibit development of the area <br />directly if front of Taco Bell at the corner of Washington and <br />Mt. Vernon. Shortly after the filing of the lawsuit, Taco Bell <br />sought an injunction from the court to prohibit the City from <br />extinguishing the purported restrictive covenant. Taco Bell lost <br />this injunction. Following the injunction hearing, the City and <br />Agency filed a cross complain to extinguish the claim and to <br />recover damages. Rather than respondthe City's motion, Taco Bell <br />agreed to dismiss its claim and negotiate an acceptable settlement <br />agreement. <br />The settlement agreement before you tonight focused on the <br />designation of a "no development" zone, on the drafting of an <br />ingress and egress easement, and the full dismissal of all lawsuits <br />and cross-complaints. The final settlement included a $35,000 <br />payment for an ingress/egress easement across the Taco Bell site. <br />The final settlement agreement will include a minor correction to <br />the boundary description of the "no development agreement" prior to <br />bringing the agreement to the Mayor and Chairperson Cisneros for <br />execution. <br />2-Y <br />