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REQUEST FOR <br />AGENCY ACTION <br />Edu tion 1st <br />AGENCY BOARD MEETING DATE: AGENCY SECRETARY USE ONLY: <br />JANUARY 17, 2006 <br />TITLE: APPROVED <br />FURTHER CONSIDERATION OF <br />ACQUISITION AGREEMENT, <br />MUTUAL RELEASE AND JOINT <br />ESCROW INSTRUCTIONS WITH <br />VINCI INVESTMENT CO., INC. <br />RECOMMENDED ACTION <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 1s` Reading <br />❑ Ordinance on 2n' Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />Approve payment of $1,000,000 in satisfaction of claims for extraordinary <br />expenses by Vinci Investment Co., Inc. <br />DISCUSSION <br />On January 3, 2006, the Community Redevelopment Agency of the City of <br />Santa Ana adopted Resolution No. CRA 2006 -01 as amended (Exhibit 1). The <br />actions by the Redevelopment Agency approved the Acquisition Agreement, <br />Mutual Release and Joint Escrow Instructions with Vinci Investment Co., <br />Inc., with the exception of the $1,025,000 identified as payment for a <br />full and complete settlement and compromise of Vinci's claims for <br />extraordinary expenses incurred in the Joher litigation and for all other <br />disputes and potential claims against the Agency. During negotiations <br />regarding this matter, Vinci Investment Co., Inc. agreed to removal of <br />the consideration of $25,000 from the total $1,025,000. Also, the Agency <br />Board directed the staff to review all of the supporting documentation <br />for the claim of $1,000,000 for extraordinary expenses. <br />Pursuant to direction of the Agency Board at its meeting of January 3, <br />2006, staff has reviewed receipts, invoices and other forms of <br />documentation submitted by Vinci Investment Co., Inc. in verification of <br />the extraordinary expenses incurred as previously described above. A <br />review to date shows that the actual amount of extraordinary expenses <br />submitted exceeds the $1,000,000 claimed by Vinci Investment Co., Inc. <br />These amounts include payment of $810,465 in legal fees ($433,715 to <br />General Counsel, $346,750 to Bankruptcy Counsel, and $30,000 to Appellate <br />Counsel), $162,500 in settlement fees to land owner, and $77,059 in trial <br />experts and consultants. <br />5 -6 <br />