CITY COUNCIL AGENDA ITEM
Meeting Date: June 14, 2005
Subject/Title: Implementation of Settlement Agreement between the City of
Brentwood and The Center at Slatten Ranch, LLC, and Approve: (1) execution
of escrow instructions; and (2) payment of settlement amount to The Center
at Slatten Ranch, LLC in lieu of the City of Antioch
Prepared by: Tom Curry, Interim City Attorney
Submitted by: Tom Curry, Interim City Attorney
Approve: (1) execution of escrow instructions; and (2) payment of settlement
amount to The Center at Slatten Ranch, LLC in lieu of the City of Antioch.
In late 2004, McDonough Holland & Allen was asked to assist the City in
resolving a dispute over payments for work on Lone Tree Way at Slatten Ranch
Road. The dispute arose from a Reimbursement Agreement with the City of
Antioch dated October 8, 2002. Under that agreement, the City of Brentwood
agreed to contribute to the cost of constructing certain public improvements
in connection with a project being constructed by The Center at Slatten
Ranch (aka “Regency”).
We mediated the dispute in December, and entered into a settlement agreement
with Regency that provided for the City to make payment to Regency in two
installments. The City agreed to place the second payment, $350,000, in an
interest bearing escrow account, to be released when Antioch accepted the
improvements. The Reimbursement Agreement provides for Regency to deliver
certain documents to Brentwood and Antioch (a recorded notice of completion,
final invoice specifying actual cost, and lien releases) as a condition of
final payment. Regency must do so before Antioch accepts the work.
As part of the settlement, Regency agreed to establish the escrow account.
The proposed escrow instructions are consistent with the terms of the
The expenditure of these funds were approved previously, however payment
authorization was for the City of Antioch and per the Settlement Agreement,
the payment should be made to The Center at Slatten Ranch. Therefore, this
is merely an administrative matter.