(OB-2012-20) OVE RSIGHT B OARD RE SOLUTION NUMB E R OB -2012-20 A RESOLUTION OF THE OVERSIGHT B OARD FOR THE C ITY OF SAN D IE GO REDEVELOPMENT SUCCESSOR AGENCY APPROVING THE SE TTLE ME NT AGREEMENT AND RELEASE RE LATE D TO THE ME RC AD O PROPERTY WHE RE AS, the former Redevelopment Agency of the C ity of San D iego (Former RDA) administered the implementation of various redevelopment projects, programs, and activities within designated redevelopment project areas throughout the C ity of San D iego; and WHE RE AS, in accordance with Assembly Bill x1 26 (AB 26), the Former RDA dissolved as of February 1, 2012, at which time the C ity of San D iego, solely in its capacity as the designated successor agency to the Former RD A (Successor Agency), assumed the Former RDA's assets and obligations; and WHE RE AS, in 2010, the Former RD A filed litigation in the San D iego Superior Court, designated as C ase No. 37-2010-0009 38 50-C U-OR-C TL (Litigation), asserting causes of action to quiet title and for slander oftitle against LandGrant D evelopment Unlimited (LandGrant), Mercado Alliance, LLC (Mercado Alliance), C .

Samuel Marasco (Marasco), related to certain property within the Barrio Logan community of San D iego bounded by C rosby Street on the north, C al Trans C oronado B ay B ridge Right-of-Way and Chicano Park on the south, National Avenue on the east, and Main Street on the west (Mercado Property); and

WHEREAS, the Former RD A also asserted a cause of action in the Litigation for recovery of a surety bond against Mercado Alliance and American C ontractors Indemnity C ompany (American C ontractors), given that the court in previous litigation (C ase No. GIC 8 658 72) had required the defendants to post a bond for $100,000 as a condition of an injunction order related to the Mercado Property; and (OB-2012-20)

WHEREAS, on February 16, 2012, the Successor Agency filed a motion for

summary adjudication in the Litigation, seeking to quiet title to the Mercado Property and to cancel certain instruments that had been recorded on the Mercado Property; and WHE RE AS, on A pril2 0, 2012, the court granted the Successor Agency's motion, thereby leaving only two active causes of action, including (1) recovery of surety bond against Mercado and American C ontractors and (2) slander oftitle against LandGrant, Mercado Alliance and Marasco; and

WHEREAS , the Successor Agency and LandGrant, Mercado Alliance, Marasco, and American C ontractors have negotiated a proposed Settlement Agreement and Release (Settlement Agreement) to resolve the remaining causes of action in the Litigation and also to resolve Mercado Alliance's claim for reimbursement under an earlier disposition and development agreement between Mercado Alliance and the Former RD A; and WHE RE AS, on July 31, 2012, the Successor Agency's board (i.e . , the San D iego City C ouncil) approved the Successor Agency ' s execution of the Settlement Agreement, a copy of which is attached to the Staff Report accompanying this item.

NOW, THEREFORE, BE IT RE SOLVE D by the Oversight B oard that the Settlement Agreement is hereby approved. PASSED AND ADOPTED by the Oversight B oard at a duly noticed meeting ofthe Oversight B oard held on August '""::\- , 2012. Chair, ~