HMB receives $5 million insurance settlement
The city of Half Moon Bay has received $5 million from the Association of Bay Area Governments insurance pool.
Although the city says at least six times in the three-paragraph release that the money will go toward its litigation expenses, this is $5 million that the city did not have before.
Since the city has already budgeted and spent the money for past litigation, this $5 million could be applied to the $18 million settlement with developer Charles "Chop" Keenan, significantly reducing the amount they would have to borrow.
Here’s the release:
Half Moon Bay Mayor and ABAG Announce Settlement of Beachwood Litigation Insurance Claim
Payment will Reimburse City for 10 Years of Litigation Expenses
HALF MOON BAY, Calif.—(BUSINESS WIRE)—Half Moon Bay Mayor Bonnie McClung and the risk sharing pool to which the City belongs, the Association of Bay Area Governments Pooled Liability Assurance Network (ABAG PLAN), announced today that they had reached an agreement under which ABAG PLAN would pay the City $5 million to reimburse it for expenses incurred during 10 years of litigation over the Beachwood property. The City expects that the $5 million will fund most of the litigation costs that it has already incurred or anticipated.
"We appreciate the decision by ABAG PLAN to pay the City the entire $5 million under our coverage, which covers the incurred and anticipated litigation costs related to Beachwood. This money will be used to reimburse the City for the almost $5 million in total legal and administrative costs of the litigation over a period of more than 10 years, but will not reach the $18 million that will be owed should AB 1991 fail," said Mayor McClung. The $5 million is the entire coverage available from ABAG PLAN.
AB 1991 passed the California Assembly 46-18 on May 28th and will be heard by the California Senate Local Government Committee on June 18th.