In The News . . . . Update: San Juan Capistrano Will Issue Bonds To Pay For Part Of Scalzo Family Trust Settlement

Winner Apparently Waived Attorney’s Fees But City Agreed to Pay for Storm Drain Improvement.

[Above:  Storm Drain Improvement.  Two men pour liquor into storm drain.  1921.  Library of Congress.]

     In our October 3, 2010 post, we summarized the results of a lawsuit eventually concluding in a substantial compensatory damages judgment and attorney’s fees award in favor of the Scalzo Family Trust and against the City of San Juan Capistrano, all arising in the context of a development project fight. We now have an update for you.

     In December 2010, both sides reached a settlement that frees the City from having to pay about $2.3 million in attorney’s fees, if previous press articles are correct. However, the City agreed to dedicate land necessary to build a storm drain improvement in a drainage channel next to the Trust’s property, at the City’s expense.

     The City paid about one half of the $6.35 million settlement from municipal reserves, with the payment eating up about one third of the reserves. The City has announced that it will issue bonds to pay the remaining part of the settlement, with the City Council approving issuance of bonds not to exceed $4 million for a 10-year term with an expected interest rate of about 3%.

     More about this settlement can be found in Brittany Levine’s article in the February 2, 2011 edition of The Orange County Register.