If 3rd Party Claims Don’t Produce $8 Million by 2022 the City will Make Litigation Guarantee Debt Payments for 20 Years.
WRCOG v City Of Beaumont Settlement Agreement and Release
April 4, 2017
The original amount of money stolen was $42,994,879. Interest and Legal Fees brought the total to $59,881,500 with $8,246/day Accrued Interest.
On September 29, 2014, the City of Beaumont Appealed Judgement, which added another $8 Million plus Legal Fees for both sides bringing the grand total to $67 Million and still accumulating Legal Fees.
Agreement Terminates when fulfilled or June 30, 2039.
1.2. REPAYMENTS
1.2.2. City rejoins WRCOG to be eligible for TUMF Mitigation Fees and Measure A Taxes.
1.2.3. City directs RCTC to give $9.4 Million Measure A Funds directly to WRCOG.
1.2.4. Third Party Claims over $8 Million by 2020, WRCOG keeps 60%.
1.2.5. City pays WRCOG $2 Million by October 1, 2017 from Developer Mitigation Fees.
1.3. BEAUMONT TRANSPORTATION FACILITY COMMITMENTS
1.3.1. By 01/01/2022 City will complete Oak Valley Parkway Improvements.
1.3.2. By 10/01/2017 City will give $2.1 Million to WRCOG to design Cherry Valley Blvd.
1.3.3. By 10/01/2017 City will set $3 Million in Special Fund for Pennsylvania Ave.
1.3.4. JOINT RECOVERY AGAINST THIRD PARTIES
WRCOG will pursue 3rd Party Claims. First $9 Million goes to WRCOG, then City receives percentage up to 50% for over money over $18 Million recovered.
1.3.6.a. City agrees to guarantee WRCOG a recovery of $7 Million from 3rd Party Claims.
1.3.6.b. “In the event the Third Party Claims have not produced recoveries in the amount of at least $8 Million by July 1, 2022, on August 1, 2022, the City shall begin making payments to the WRCOG on or before August 1st of each year to be applied towards the Litigation Guaranty in equal annual installments over a period of 20 years.”