HUNTINGTON BEACH : Developer Claiming Bad Faith by City

A developer has filed a $10-million claim against the city, alleging that city officials did not operate in good faith with the company on a downtown redevelopment project.

The claim, which was filed in the city clerk’s office, is the first step toward a possible lawsuit against the city.

“I’ve received a copy of the claim, and I’m looking into it. So far we haven’t taken a position on it,” Deputy City Administrator Barbara Kaiser said Friday.

The claim was submitted by Griffin/Related Properties-1 and Griffin Realty Corp. of Santa Ana.

The claim alleges that the city’s Redevelopment Agency named Griffin in May, 1987, as the “designated developer” for property in a two-block area at Pacific Coast Highway and Main Street.

The claim charges that the Redevelopment Agency persuaded Griffin to yield its option on some property in the area.

The Redevelopment Agency then acquired the property, and later informed Griffin that it was seeking redevelopment proposals from other developers, the claim charges.

The claim was filed on behalf of Griffin by an Irvine law firm, Jones, Day, Reavis & Pogue.

Thomas R. Malcolm, a lawyer with that firm, said it asks that the city give back the property that Griffin had the option on.

“And we’re also asking $10 million,” Malcolm added.