Westside Union School District
On March 9th the Superintendent for the Westside Union School District (WUSD) signed a settlement agreement with Anaverde LLC.
This agreement lets the developer out of their contract to build schools in Anaverde.
You can read the settlement agreement here.
You can read the original 1992 agreement here.
You can read the original 2005 agreement here.
The settlement agreement was adopted by the school board at their March 16, 2010 meeting.
Here is the history of the settlement agreement:
Just prior to Anaverde LLC filing bankruptcy, WUSD sued them for breach of contract.
When it filed bankruptcy, Anaverde LLC listed the agreement with the school district as a contract to be voided. The school district sued to have the contract kept separate from the bankruptcy.
Anaverde LLC countersued, contending that the agreement was not tied to the development, it was just a contract between Anaverde LLC and the District. You can read their motion here.
It is not very flattering to Anaverde residents.
On March 9th the Superintendent of Westside Union School District signed the settlement agreement. Essentially, it lays out three conditions for the developer:
The approximately $7 million that has been held in escrow as construction funds for Anaverde is to be paid to WUSD as developer mitigation fees for phase 1. All mitigation fees for phase 1 are then considered paid in full. THESE FUNDS WILL BE ADDED TO WUSD's GENERAL CONSTRUCTION FUND.
Mitigation fees for all future phases will initially be set at $4.08 per square foot, which may be passed on to future homeowners through the creation of a CFD (Mello Roos), which Westside will establish.
Two 10 acre sites are to be put aside in future phases for schools that the district will have to build. And the district will pay full Fair Market Value of the highest possible use of the land. If the district has not purchased one of those school sites within ten years then the obligation to reserve school sites will be reduced to just one site rather than two.
This agreement will stay in force for 10 years.
Anaverde LLC is trying to eliminate the Development Agreement for Anaverde
On March 5th the City of Palmdale filed an Objection to Anaverde LLC's bankruptcy, contending Anaverde LLC was trying to negate the Development Agreement.
On March 10th Anaverde LLC filed its answer, formally requesting that the bankruptcy court cancel out the Development Agreement for the Anaverde community.
You can read it here.
The Development Agreement is what establishes Anaverde as a Master Planned Community. Without it, the developer has no obligation to construct anything, and no guidelines as to what they can and cannot build.
If this agreement is cancelled by the court, the City of Palmdale has the authority to not allow any further construction until a new agreement is signed.
If this agreement is cancelled, however, the entire development starts from scratch.
The 'sale' of Anaverde (where Anaverde LLC principals are selling the development to themselves under the name New Anaverde LLC) was set to occur on March 31, 2010.
Anaverde LLC is awaiting the court's ruling on this matter. They have threatened that they will not 'buy' the development unless this agreement is cancelled. You can read that request here.
Remember that the developer still has three seats on our HOA board? John Miles is the only developer member that has been coming to the meetings.