Anaheim : Developer Sues Over Tab for Street Widening

A developer who paid the City of Anaheim $75,000 to widen a part of Lincoln Avenue filed suit against the city this week because the work was not completed on time.

Citing a breach of contract, Stewart Green Associates filed suit in Orange County Superior Court, demanding a reimbursement of the $75,000, plus interest.

The developer had paid the city $75,000 to widen Lincoln Avenue from State College Boulevard to Peregrine Street, and to install and relocate some curbs and gutters, by Sept. 30, 1984. But the work was completed in February of this year, according to Frank Nicholas, an attorney for Stewart Green.

“The agreement provides that if the city did not make the improvement (by the deadline), they would reimburse the money,” Nicholas said.

Deputy City Atty. Mac Slaughter said the company paid the city less than if the developer had hired a private company to do the work, as such improvement projects are usually handled. In this case, Stewart Green, which remodeled and expanded the adjacent East Anaheim Shopping Center, paid the city $75,000 and Anaheim contracted out the work, Slaughter said.

“We think Stewart Green was obligated not only to $75,000 of improvements but also additional improvements” not specified in the agreement but that fall under city ordinances, Slaughter contended.