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MALDONADO & MARKHAM, LLP A1TORNEYS AND COUNSELORS AT 'LAW WILLIAM A. MARKHAM* 402 WEST BROADWAY, SUITE 2050 MEXICO OFFICE: DIRECT: (619) 221-4418 SAN DIEGO, CA 92101 GUADALUPE VICTORIA 2306-201, ZONA RIO E-MAIL: firstname.lastname@example.org. TIJUANA, BAJA CALIFORNIA, 22010, MEXICO (619) 221-4400 (TEL.) (619) 224-3974 (FAX) +52 (664) 200-2392 (TEL.) .. ANTONIO MALDONAOO+ DIRECT: (619) 819-5166 v.fww.maldonadomarkham.com +52 (664) 200-2536 (FAX) E-MAIL: email@example.com Executive Director REDEVELOPMENT AGENCY OF THE CITY OF SANTA CRUZ 337 Locust Street Santa Cruz, CA 95060 ATCHISON, BARISONE, CONDOTTI & KOVACEVICH 333 Church Street Santa Cruz, CA 95060 BY ELECTRONIC TRANSMITTAL, FAX AND REGULAR MAIL May 31,2012 Re: 1547 Pacific Avenue, Santa Cruz, CA Dear Gentlemen: I represent Ronald Lau" Eric Lau, and Lani Lau. Ron Lau formerly held title in fee simple to the parcel ofreal'property located at 1547 Pacific Avenue, Santa Cruz, California 95060 (the ' "Condemned Property"), and he rented part ofthe Lau Property to Eric Lau and Lani Lau. In 2005, the City of Santa Cruz (the Redevelopment Agency ofthe City of Santa Cruz) condemnedJhe Property in order to allow a developer (Bolton Hill Company, Inc.) to acquire and develop it in accordance with an elaborate redevelopment plan. The City of Santa Cruz accordingly prosecuted a condemnation against my clients that quickly led to a settlement under which my clients received (1) a cash payment and (2) binding assurance that the acquiring developer or its successor would either develop two condominiums on the properties for my clients or, failing this, pay them liquidated damages inthe amount of$700,000. ,It appears, however, that the City of Santa Cruz took my clients' property under its power of eminent domain in order to deliver it to a private property developer whose controlling decision-makers later decided that after all they did not wish to develop the property at all, and so they allowed their lender to take the property by foreclosure. My clients so far have never received either the promised cOndominium units or the liquidated damages, even though these items were material inducements to their agreement to settle the City of Santa Cruz's condemnation proceedings against their property. * ADMiTTED IN CALIFORNIA AND WASHINGTON, D.C. tADMITTED IN MEXICO, CALIFORNIA AND NEW YORK Redevelopment Agency of the City of Santa Cruz Atchison, Barisone, Condotti & Kovacevich Page 2 May 31,2012 The obligation to build the units or pay the liquidated damages is set forth as a covenant that runs with the land that is recorded as an equitable servitude against title to the Property. The latest possible date on which the liquidated damages can be timely paid is October 25,2012. It is now possible that the foreclosing lender will take the position that at the trustee sale it acquired title free and clear of this equitable servitude. Ifit does so, and if you decline to afford my clients their promised consideration, I will be obliged to re-open the condemnation proceedings, over which the Superior Court has preserved ongoing jurisdiction under Section 664.6 ofthe Code of Civil Procedure. If! re-open the proceedings, I will seek a rescission of my clients' agreement to the settlement -and a reconveyance to them of their title to the Property. "\ Ifhowever you will confirm that you will honor the equitable servitude by providing the promised units or paying the $700,000 to them no later than October 25,2012; then there will be no need for me to seek any further redress. I would greatly appreciate your prompt response to this demand. Thank you. Yours sincerely, M~,....-- William A. Markham WAM/la cc: Mr. Ronald Lau Mr. Eric Lau Don Hubbard, Esq.
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