San Clemente Marblehead Development: San Clemente Ready to Sue Developer SunCal

As Reported In The Sun Post News, The City of San Clemente announces it's prepared to sue over delayed Marblehead Coastal improvements. There appears to be movement at the 248-acre Marblehead Coastal construction site after the city's elected leaders announced Tuesday they will sue the master developer to demand completion of promised parks, roads and other site improvements.
The site – along I-5 at the Avenida Vista Hermosa exit – has been quiet in recent weeks since the contractor building a bridge reportedly walked off the job. Work also halted on a park and other infrastructures. SunCal is caught in a nationwide housing slump that has made money tight.
"SunCal/Marblehead has basically stopped work on the subdivision improvements," City Attorney Jeff Oderman said Tuesday. He announced that the City Council had directed him to sue Marblehead Coastal's master developer – SunCal – to demand completion of promised infrastructures.
A subdivision improvement agreement enacted in June, 2005 had required SunCal to complete roads, bridges and other infrastructures within two years and required work to be done continuously, once commenced, Oderman said. The City Council's 5-0 vote authorized Oderman to file suit against SunCal and the bonding company to enforce the terms of the subdivision agreement.
SunCal's Joe Aguirre replied Wednesday that "work resumed this week on the bridge, and the first concrete pour, which is a major undertaking, will happen this month."
Aguirre said SunCal is reviewing and responding to letters from the city concerning the progress at Marblehead Coastal. Oderman said the city had notified SunCal twice of its concerns before the City Council took its vote Tuesday to authorize a lawsuit.
Aguirre responded to a series of questions:
What is the current situation?
On Tuesday, the Marblehead Coastal project leaders met with the bridge construction team and city staff, and the bridge contractor is working on the site. Engineering experts are currently inspecting the concrete forms and other preparatory materials that were previously installed.
When might work resume?
Work is already under way. Following this week's inspections, we will have a construction schedule for the bridge available next week. We will then have a good idea when the first major concrete pour will take place. It should happen later this month.
What would it take for work to resume?
We continued our discussions with the bridge contractor in recent weeks and have resolved the contractual issues.
Is SunCal still showing lots to prospective buyers?
Yes, the sales gallery continues to be open by appointment only for custom-homesite tours and sales.
Can you turn over the commercial site to the Craig group for development?
Yes, the commercial site will be turned over to Craig Realty when the work is completed according to our agreement.
COMMERCIAL CENTER
Steve Craig, who plans to develop a 640,000-square-foot Marblehead Coastal commercial center to go with SunCal's 308 homes, has been waiting for SunCal to complete promised improvements that his group purchased.
Tuesday, Craig said he hopes SunCal will live up to its agreements with the city and its purchase agreement with him. Completion of the SunCal bridge and completion of Avenida Vista Hermosa are two big needs for the commercial center.
"The good news is the work is bonded," Craig said. "They had to provide a performance bond. My guess is they're about 70-percent done with everything. A lot of the work is done. The other 30 percent is still bonded."
THE CITY'S TAKE
City Hall's response to SunCal's bridge announcement Wednesday was cautious. "That may have an impact on whether we pursue litigation," City Manager George Scarborough said. But just starting work again on the bridge may not be enough.
"We don't know how extensive the work is," Scarborough said. He said the bridge is only one of many site improvements in the subdivision agreement. "The bridge is only one of them," Scarborough said. "We'll see what develops. Unless something substantive changes … litigation will begin."