The Town of Mammoth Lakes and Mammoth Lakes Land Acquisition LLC (MLLA) jointly announced today that, as a result of a U.S. bankruptcy court-established mediation, they have reached a tentative agreement on a settlement of the $43 million court judgment held by MLLA against the Town.
Also a party to the settlement is Terrence Ballas, the developer holding commercial development rights under the Town’s 1997 Airport Development Agreement and associated leases. The Airport commercial development has been put on hold since legal issues with MLLA emerged over the hotel/residential portion, and the Developer has since asserted various contract breaches by the Town, which the settlement will address.
The parties, guided by U.S. Bankruptcy Judge Elizabeth Perris, a talented and trustworthy mediator, have worked diligently since August 6, 2012, to reach an agreement on the amount and terms, and signed a term sheet containing the settlement’s key points. The settlement agreement, including any and all terms, will remain confidential until it is fully documented and executed. While steps are taken to document and seek approval of the settlement, all discovery and litigation among the parties will be put on hold. At the same time, some key deadlines established by the U.S. bankruptcy court will remain, including a deadline to file objections to the Town’s eligibility by entities not party to the settlement. The Town will provide additional information to the public as soon as the settlement documentation is finalized and filed for court approval, which is expected within weeks.
At that time, public meetings will commence to discuss how to finance the settlement. The Town, MLLA and Terrence Ballas sincerely thank U.S. Bankruptcy Judge Elizabeth Perris, who served as the mediator and tirelessly worked with the parties around the clock to reach the settlement.