CITY OF LA MESA WINS APPEAL OF LAWSUIT OVER USE OF CITY PROPERTY NEAR BRIERCREST PARK

January 5, 2014 (La Mesa)--The Fourth Appellate District Court of Appeals on December 16^th ruled in favor of the City of La Mesa in an appeal of a lawsuit centered on a series of lease agreements to develop and operate housing facilities for older adults in La Mesa. The ruling in Briercrest Development, L.P. v. City of La Mesa will allow the City to recoup attorney fees. 

City Manager, David E. Witt said of the ruling, “It is a great relief to finally regain control of the City's property. The concept of this development area was to create a park (Briercrest Park) that promoted healing and surround the park with compatible uses. This decision will allow the City to move forward to put this property to a productive use for the community.”

In 2004, the City and Health Care Group (later Briercrest Development L.P.) entered into a ground lease for City of La Mesa property located west of Briercrest Park on Wakarusa Drive in La Mesa. Over the course of the next six years, Briercrest Development L.P. attempted to acquire funding to develop varied senior housing facilities. First the developer sought financing for senior residential rental units, then requested a modification to the ground lease to allow the development of senior condominiums, and finally unsuccessfully tried to secure funding from the United States Department of Housing and Urban Development (HUD) for an assisted living residential care and a skilled nursing facility.

In 2009, La Mesa became concerned with the lack of progress on the City’s property and a new amendment to the ground lease was negotiated. The amended agreement outlined that the developer needed to satisfy conditions (financing, begin construction, and receive governmental entitlements and permits) within a set performance schedule with agreed upon extensions, or the City would contractually terminate the agreement.

When the conditions of the agreement were not met, the City terminated the agreement.

Briercrest Development L.P. sued the City in March 2010 for breach of contract.

The bench trial court issued a final statement of decision in November 2011 supporting the City’s case and awarding attorney fees to the City. Briercrest Development L.P. appealed the decision and in December 2013 the appellate decision was handed down in the City’s favor.

The City will seek City Council direction on the future use of this property in 2014, a press release issued by the City indicates.