VENTURA : Harbor Village Suit Settlement Proposed
Ventura Port District commissioners have approved a proposed settlement that would resolve a multimillion-dollar lawsuit with creditors who helped finance the construction of Harbor Village in the Ventura Harbor.
Harbor Village, a commercial and entertainment center, was completed in 1982 and was financed in part by a $9.5-million bond issue.
But four years later the developer, Ocean Services Corp. of Ventura, went bankrupt, leaving the harbor district liable for $6.5 million in bond payments plus interest.
Bank of America, the creditors’ trustee, filed a lawsuit against the district to recover its losses.
Ventura Harbor General Manager Richard Parsons said Thursday that the terms of the settlement are not being disclosed because the district’s creditors have yet to accept the agreement proposal. The settlement also must be approved by the Ventura Superior Court, where a trial is scheduled to begin Monday.
Parsons said that under the proposed agreement, the district would lease the village to Beauchamp Enterprises of Newport Beach and use the lease money to pay its creditors an undisclosed sum.
Parsons said the district recognizes a $7-million debt, but the bank is asking for $10 million.
“Unfortunately, the settlement we’re proposing is much closer to their figure than it is to ours,” he said.
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