MISSION VIEJO : City Backs Out of Office Complex Sale

The city’s plan to sell a $3.35-million office complex it owns has fallen through after a staff review that raised problems concerning the prospective buyer.

On Tuesday, the City Council voted unanimously to cancel the proposed sale of a two-story office building at 24800 Chrisanta Drive after it heard the results of a background check by city staff members on J.B. Financial, which has offices in Mission Viejo.

“After staff did the background search, we didn’t like what we found,” said Councilwoman Susan Withrow.

Council members said part of their concern was that the terms of the down payment had changed and also that the city had discovered lawsuits filed against J.B. Financial. Council members would not disclose the nature of the lawsuits, but said they did play a role in the decision.

“We were uncomfortable with the lawsuits pending and with the down payment changing,” Withrow said.

The council had agreed to a $400,000 non-refundable down payment in a tentative sale it approved last month. However, two weeks ago city officials said the company asked the council to reduce the down payment. The council agreed to accept $200,000.

But the reduced down payment was not received by Tuesday so the council decided to get out of the deal.

“I just feel grateful that we learned the information we did and put the brakes on the transaction,” said Mayor Robert A. Curtis. “It’s unfortunate that the buyer was not what he appeared to be.”

Officials at J.B. Financial’s office in Mission Viejo were not available.

However, Paul Larson, a real estate agent representing J.B. Financial, said his client was “really nit-picked on, really beat up” by the city.

Larson said the principal owner of the firm, John Bowen, has never been contacted by the city and asked about his company’s background.

“For starters, they never asked him any questions about the firm’s financial background,” he said. “If they were really sincere about this transaction, they would have contacted him.”

Larson also said the lawsuits should have no bearing on a business deal with the city.