It’s no secret that Town of Mammoth Lakesofficials sat down to negotiate with the business men who hold the $30 million
judgment against the Town, but some have wondered why Mammoth Lakes Land Acquisition LLC would bother.
Sierra Wave asked Town Manager Marianna Maryshea-Martinez to respond to that question. She said, “There is an incentive for Mammoth Lakes Land to work with us so we can develop a settlement the Town can reasonably afford to pay.”
Marysheva-Martinez said that if the Town can not afford the payments, it will leave two options. One, to significantly reduce services, which, she said, would result in the Town losing its “world-class reputation and revenues.” Under the second option, the Town would declare bankruptcy which would also lead to a loss of services and revenue, according to Martinez.
Other sources have said that under bankruptcy, Mammoth Lakes Land might not get its money for a lengthy period of time. The Town did hire a bankruptcy lawyer. Martinez added that, “It is in our joint interest to come up with a settlement that helps both of us.”
In a press release issued Thursday, the Town re-confirmed that the two sides are negotiating. The release also made it clear that the actual amount of money the Town owes Mammoth Lakes Land adds up to about $40 million, considering attorneys fees and interest. The release also said that under the “collaborative process in pursuit of a settlement”, the parties will hold meetings in coming weeks to review the Town’s financials.
The goal, says the release, is to “determine how the Town can satisfy MLLA’s judgment while minimizing any adverse impact to its current municipal service levels and its reputation as a world-class resort destination.”