BREA : City Chooses Option B in Pool Settlement
After a closed-door discussion of legal issues in Orange County’s bankruptcy case, the City Council voted to accept settlement Option B to recover money from county’s failed investment pool.
Under that option, Brea would receive a cash settlement of about $7 million and keep the right to sue for the rest of its money. The city and its Redevelopment Agency had a total of $9 million in the pool when the county filed Dec. 6 for bankruptcy protection.
“We still have some unanswered questions regarding the settlement language and what it means to the city,” Mayor Bev Perry said after casting her vote Thursday in favor of Option B. Perry said the city can still change its mind and may switch to Option A within a month.
Under Option A, Brea would receive cash and recovery notes but would not be able to pursue legal action against the county.
Casting the lone vote for Option A at this week’s special meeting was Councilwoman Lynn Daucher.
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