THOUSAND OAKS : City, Developer Remain at Odds

Three months after agreeing to binding arbitration to resolve a payment dispute, the city of Thousand Oaks and a developer of the Dos Vientos housing project have still not selected an arbitrator.

The disagreement centers on an $806,000 payment that developer Courtly Homes was supposed to pay the city in mid-June. That money was due under a development agreement that guaranteed Courtly Homes as well as Operating Engineers the right to build up to 2,350 homes on Dos Vientos Ranch in Newbury Park.

When Courtly Homes failed to come up with the payment by October, the City Council voted to declare a breach of contract.

But the developer’s attorney, Chuck Cohen, argued that Courtly Homes had a right to request an amended payment schedule because the sagging economy presented an insurmountable obstacle to raising the cash.

The development agreement provides for relaxing either party’s obligations in case of an “act of God,” such as an earthquake, flood or war. Cohen argued that the stagnant real estate market falls in that category.

To resolve their differences, both sides consented to binding arbitration. So far, though, they have made little progress.

“Picking an arbitrator is sometimes the most difficult part of the process,” City Atty. Mark Sellers said. “We’re still talking about a number of issues, which I can’t disclose.”

Courtly Homes will not owe the city any additional payments until the developer starts building on Dos Vientos, Sellers said.