VENTURA : Settlement OKd in Harbor Village Suit

Bank of America, acting as trustee for creditors who helped finance the construction of Harbor Village in the Ventura Harbor, announced Friday the terms of a preliminary settlement of a multimillion-dollar lawsuit with the Ventura Harbor District.

Under the agreement disclosed by the bank in a newspaper advertisement, the creditors would immediately divide a $1,088,000 cash payment, and the balance of the debt will be paid off after the city sells its wharf facilities.

The agreement still has to be ratified by the Ventura Superior Court at a hearing set for Aug. 27, at which time individual creditors will have an opportunity to make their comments.

“I’m glad we could settle the suit, but it’s going to be hard on us,” said Richard Parsons, port district general manager. Parsons said the total settlement will cost the port $9 million.

Bank of America officials would not comment on the suit nor reveal the number of creditors involved.

Harbor Village, a commercial and entertainment center overlooking the ocean, was completed in 1982.

The suit involves about half the property developed in Harbor Village, about 50,000 square feet, including boat slips, a boatyard, commercial fishing facilities and a building with office space and a restaurant. The other half of the development is owned by Great Western Bank.