Marblehead Update: Unfinished Business with SunCal

MARBLEHEAD of San Clemente: A widening of Avenida Pico remains a work in progress ... qustionable progress, since work halted in January on the adjoining Marblehead Coastal development. The city has a punch list of 10 items it wants the developer, SunCal, to complete under terms of a 2005 agreement. How much longer will San Clemente be looking at a constricted Avenida Pico, lined with sandbags along the path of an unfinished street widening?
Pico is one of 10 unfinished items on a punch list the city says SunCal needs to complete to comply with a subdivision improvement agreement for the stalled 248-acre Marblehead Coastal development.
On March 4 the City Council authorized the city attorney to file suit to enforce a June, 2005, agreement that required completion of subdivision improvements in two years. It also required that work be performed continuously until completion, City Atty. Jeff Oderman said. The suit hasn't been filed but the city has sent SunCal a demand letter, City Manager George Scarborough said. SunCal replied last week that work is resuming on the bridge and SunCal was reviewing the city's letter, preparing a response.
"As of this date, no grading or improvements required for Marblehead Coastal have been completed by SunCal or accepted by the city," said a communication from the city, requested Monday by the Sun Post News. Some areas are closer to completion than others, City Engineer Bill Cameron's report said.
Major work remaining:
•Avenida Vista Hermosa:Completion of road extension, bridge and underground utilities.
•Avenida Pico:Widening and underground utilities.
•Sports park:Construction and related parking and landscaping improvements.
•Other parks and trails:Completion.
•El Camino Real:Widening and underground utilities.
•Water line:Realignment and connection, along I-5.
•Storm drains:The northeast canyon area of the commercial site.
•Commercial site:Grading.
•Via Socorro:Widening.
•Residential areas:Grading and improvements.
SunCal – caught up in a nationwide collapse of the housing market – is already facing seven lawsuits filed in Orange County since October, accusing the company of failing to pay more than $105 million in debts. In late January, work halted at Marblehead Coastal, where SunCal is developing 308 homes and is to deliver an improved site for a 640,000-square-foot commercial center to its buyer, Craig Realty Group.
The Sun Post News asked Scarborough what has transpired since the City Council's 5-0 vote March 4.
Q. Has there been follow-up communication from or with SunCal since the council voted to authorize filing suit?
A. There have been conversations with SunCal since the City Council vote.
Q. What is the status of the City Council's direction to file suit?
A. We have not yet received a formal response to our demand letter. The City Attorney is preparing the papers and will file when he determines it to be appropriate.
Q. How much site work is SunCal doing at Marblehead Coastal?
A. They had begun to do the preliminary work for the bridge deck prior to the City Council action. That work is continuing but I am not aware of any additional progress on any of the other public improvements.
Q. What would it take to trigger a release of the bonds to complete the Avenida Pico widening and the other unfinished work?
A. The bonding company is obligated to insure the improvements are completed. They will have to step in to cause the improvements to be completed if SunCal is in default and does not cure the default.
SunCal's Joe Aguirre reaffirmed Wednesday that SunCal restarted the bridge project March 4, after working out contractual issues with the builder: "Engineering inspections have been taking place since then, along with any work that is needed to ensure the forms and other preparatory materials that were previously installed are in place and ready for the concrete pouring. We will be receiving the bridge construction schedule this week, along with the timing of the first concrete pour, which will be a major effort." Article courtesy of the Sun Post News.