For those who feel that the Town of Mammoth has slipped down the rabbit hole never to stabilize, officials say there is a plan to work out of the huge $43 million lawsuit debt and back to the Town people want; but it will take time.
Following Mammoth Lakes Land Acquisition’s surprise public settlement offer a week ago for the Town to pay principle and interest of $86 million over 30 years, Town Manager Dave Wilbrecht described the current process with MLLA as one that could lead to settlement or to bankruptcy. His comments point to a path that would be required if the Town were to try for bankruptcy, but it wouldn’t necessarily lead there.
He said the Town sees the next step now as a third party mediator to look at the finances, do some due diligence and try to achieve a settlement. He explained that in California if a public entity is thinking about Chapter 9 and a re-structuring of debt, the Town “has to go through mediation.” Wilbrecht said that regardless of what MLLA does, some of the Town’s creditors will go to mediation. “We’ve been working on a restructuring plan,” he said.
MLLA’s attorney had stated in the March 23rd letter that his clients are not interested in mediation. Wilbrecht said if mediation does not work, then the Town would have to figure out how to pay the debt by the end of the fiscal year as ordered by the court. He said if the Town can not pay its bills, “We would go to bankruptcy court and ask for a process.” Wilbrecht said the judge would look at all the facts and arguments.
Asked if the MLLA debt would be reduced in formal bankruptcy, Wilbrecht said, “We don’t know that.” A bankruptcy judge would consider the situation and whether Mammoth qualified for bankruptcy. The judge would also determine payments by creditors. Wilbrecht repeated that the Town’s first interest is mediation. “We believe strongly,” he said, “that we can not pay the full amount.”
Asked if a bankruptcy judge could force the sale of the Mammoth-Yosemite Airport and the bell-shaped parcel owned by the Town to pay off its debts, Wilbrecht said he believes the way the law is written the Town “has a duty and obligation to fulfill its mission. Certain assets are needed to do that.” He said this doesn’t mean the Town couldn’t liquidate assets to help with a settlement. Wilbrecht said he believes the bankruptcy judge could order liquidation.
A major issue between the Town and MLLA is what makes up basic services in Mammoth Lakes – what government has to support. Wilbrecht said that Town officials will talk to the public about this. He is working on a public letter that the Town Council will consider when they meet April 4th. “The Town has wanted to communicate with the public, but we have been under a confidentiality agreement with MLLA not to,” said Wilbrecht. He did say that since MLLA has made details of their settlement offer public, the Town may say more publicly too.
Although Wilbrecht did not say so, most believe the legal and financial specialists the Town has hired must be advising the course of public versus secret communications and the labyrinth of steps that the Town must take to deal with its enormous money problem.
If I recall, every Town Council decision made going back to 2005 thru the current status with respect to the Hot Creek summons and subsequent MLLA judgement was recommended by well known and nationally recognized independent outside legal firms (i.e. the best legal advice money can buy). If I recall,… Read more »
One has only to study the Bell, California scandal to see how easy it is for officials to misappropriate public funds, throw the money towards their pals’ and own interests, thus creating (if they are caught manipulating certain parcels of land) real estate deals that run amok. It seems to… Read more »
How Many More Years Will Mammoth Drag It’s Feet…..
And NOT Accept Responsibility for It’s Actions.
Lets pay more laywers and not pay the judgement….. REALLY????
Where the real problem is:
Until it is 100% illegal for an elected official to gain or accept one thin dime from any outside source – the system you have in place will be a corrupt one.
Maybe also .. make elected offices volunteer service?
“[a]t common law, extortion was an offense committed by a public official who took ‘by color of his office’ money that was not due to him for the performance of his official duties. . . . Extortion by the public official was the rough equivalent of what we would now… Read more »
It seems to me, there are those who may have gotten in over their heads financially with their real estate investments. This might explain the non-stop angst, sniping, sour grapes, and personal attacks as their property continues to depreciate with the realization that they have not adequately prepared for the… Read more »
Dennis, Your “liberal eliteist” comments have nothing to do with this issue. Rush Limbaugh, property values & the tea-party have nothing to do with this. If you want to blame this on our “well-trained administrators” like the Town Attorney & the head of Risk Management then you are correct. We… Read more »
Since the word has been brought up (as has become the method of today’s Limbaughs and Coulters) It’s always interesting how quickly some try to label, and negate opposing points of view in today’s polarized society. As if nobody is paying attention, the word “liberal” is almost always introduced as… Read more »
Dear “Problem Solved”
I’d love to discuss the definitions of things such as: Just what is a liberal?
Or, Just what is a conservative? over a beer or two with you, but all I have as a contact from you is the name “Problem Solved.”
Interesting Dennis
Sadly, behind closed doors may be the only way to operate a meeting – w/ so many arm chair quarterbacks and lynch mobbers attending nothing would ever get done. I hate to admit it… but maybe we can only trust those in charge right now? MMM and Dave W. and… Read more »
Thanks, Benett, for your fine story. Now it’s time for the local press to start unpacking recent statements by MMM and Wilbrecht and pose a new round of questions. Is the TOML budget chronically unbalanced? Is the TOML, like many other cities across America, confronting an era of large unfunded… Read more »
Observer, It is very obvious that you are part of the MLLA team. Every local in this town knows that Terry Ballas would have went bankrupt if he actually would have built this project. Do you know anyone that wants to buy a condo with planes flying within 100 feet… Read more »
Problem Solved: No, Observer doesn’t work for MLLA, or believe they had a case to win, or should have won it before a judge and jury–– although I do think TOML and its attorneys lost the case, and failed to develop a record at trial on which to successfully appeal… Read more »
Dennis, thank you. Your comment that “We reap what we sew” (sic) had me in, well, “stitches”! Malapropism aside, humor may be one of the few benefits of this mess that gets the people of Mammoth Lakes through this ordeal. Dingo’s four-word comment that “Custer had a plan” was an… Read more »
The truth hurts Mammoth. You are broke. Pay what you can now and go bankrupt. Get this over with. Borrowing money to pay these cone artist is foolish. Your options are to pay double.
I agree with a lot of your comments hence my name! I complain plenty. I did not vote for Eastman nor did my friends We moved the last few out including Kirk stapp.. These guys are so connected. We were hopeful the young people would get involved by they did… Read more »
I believe there was an evacuation plan on the Titanic as well,,,
Yes there was, with only enough life boats for the wealthy. Very nice analogy
Right, and the two wealthiest men aboard, John Jacob Astor and Benjamin Guggenheim, went down with the ship because, in Guggenheim’s words that he asked to be delivered to his wife, “No woman shall be left aboard this ship because Ben Guggenheim was a coward.” Not saying it isn’t fun… Read more »
wasn’t bashing the rich, simply stating a fact, which you obviously know cause you were able to quote 2 out of hundreds of the wealthy that had some courage. There were not enough life boats for all of the passengers FACT. Fact, Courage knows no financial or race or sex… Read more »
What confounds me, is the same people who spearheaded the original mess are still around and continue to get voted in again and again. Not knowing the nuts and bolts of it all (been in Mammoth a mere 5 years), it looks as if these same people may have their… Read more »
Dennis, The Town Attorney, Peter Tracey advised the Town Council to vote this way. He was getting paid hundreds of thousands of dollars to do his homework. Now do you know why he left Town? Head of Risk Management, Mike Grossblatt advised the Town Council to vote this way. He… Read more »
WOW! The real truth comes out. Peter Tracy said the same thing publically until the bitter end. The Town should sue Tracy for malpractice.
Dennis, it is a shame. But, look at the current council seat re-election… we only had one – Michael Raimondo (sp? sorry) step up to the plate. He has the ball$ but not many do. We need some talent on this small-town Town Council and the talent is not forthcoming.… Read more »
I agree that the Town should have never entered the legally binding committment but, since the parties that originally agreed to that committment are no longer around, why should the taxpayers be on the hook for it? The Town Council certainly acted against what I believed was right at the… Read more »
Custer had a plan.
“the Town sees the next step now as a third party mediator to look at the finances,”
How much is that going to cost and what the hec do we pay you for?
We feel so much better now…
Since the original judgment against Mammoth Lakes in 2008, the town leadership’s plans have been based on denial. First they denied that a legally binding commitment was legally binding. Then they denied that the initial judgment was correct. Then they fiddled around by not developing a realistic plan to pay… Read more »
You are so right Ken…this really is downright criminal, and it’s getting worse by the day. The millions spent (and to be spent) on attorney fees literally turns my stomach.
Good post Ken
I hope the town does not give up to land they are thinking of giving. As Ken say’s, this is valuable open land, not so much as real property to be developed, rather land that is open space, to remain that way. I can’t help but think that the members… Read more »
Terry Ballas is the man responsible for the fix the community or people of Mammoth find themselves in, no one else. Ya, the developer that testified he didn”t know the land he leased was subject too FAA approval. The same Ballas that sued the town for not telling him the… Read more »
The people of Mammoth are responsible for the fix they find themselves in…
Actually, Wayne, the PEOPLE of Mammoth are not responsible for all of this. A few incompetent council members, an airport manager, former Town Manager and former Town Attorney might be mostly responsible. Why do you HATE the people of Mammoth so much? You and Upthecreek have ONE agenda and it… Read more »
The government the PEOPLE elect is the government they deserve, and they deserve to get it good and hard.
Dave…To be honest,I don’t understand a whole lot about how a town can get in such a mess…But what I do know is,long ago,back in the 80’s,I used to enjoy going to the little town of Mammoth Lakes…nice,quiet little town with friendly people.But things changed….It’s not as if it’s like… Read more »