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Developer Sues Monrovia for $106 Million, Alleges Breach of Contract

City officials said in a prepared statement that they are flabbergasted by the suit from local developer Samuelson & Fetter, a key player in the city's Gold Line transit village development.

A local developer is suing Monrovia for $106 million in damages, alleging that the city breached a contract relating to the Station Square Transit Village development being built in anticipation of the coming Gold Line Foothill Extension, according to the city.

City officials put out a prepared statement Wednesday evening and said they were shocked by the lawsuit and the enormity of the monetary damages sought.

"Samuelson & Fetter has levied upon us a lawsuit that would destroy the community that they helped create," Councilman Joe Garcia wrote. "We are shocked and saddened that they felt it was necessary to take this action."

According to the city, the lawsuit alleges that Monrovia breached a contract with the developer when it used land for a rail maintenance yard project instead of allowing it to be commercially developed.

Lynda Fetter, a principal at Samuelson & Fetter, did not immediately return a call requesting comment on this story.

Patch has not yet reviewed the lawsuit documents, which were not available in the court's online records system Wednesday night. Monrovia Mayor Mary Ann Lutz said the city received a preliminary copy of the lawsuit on Tuesday and has not been served with an official copy registered with the court.

Check back later for more on this breaking story.

Herbert Edgard Alamo August 30, 2012 at 03:29 AM
The city of Monrovia shall prevail!
Mic Mowery August 30, 2012 at 03:53 AM
I know this project very well & has been a real issue, I know the owner that sold it to the City of Monrovia for the Gold Line to make happen which was a fight!! More lawsuits but I did not know that a deal on the back end! Which makes me wonder who is really making theses deals look so ugly? This looks bad for the city of Monrovia whom ever is making these promises.
Dan Crandell August 30, 2012 at 03:56 AM
What contract ?????? Mr Garcia is only "shocked and sadden" by this "action"? Sorry Joe ... that don't even come close to "a correct" reaction. This BS better not be true.
Steve Buckner August 30, 2012 at 03:58 AM
They want their kick back money returned.
Mic Mowery August 30, 2012 at 04:03 AM
If you have something in writing? A contract? You agree to do business as is. Maybe we should all do business this way! I changed my mind! So never mind forget what we signed I do not want to do business with you. Sorry but someone made a huge mistake! Guess what? The City of Monrovia will have to pay this law suit NOT 103 MILLION But they will have to pay. Black eye for who is in charge!!!
Richard Christy August 30, 2012 at 04:23 AM
Anyone who has dealt with Monrovia's City Manager, Mayor, and city council would not be surprised by this at all. If you act shocked, then you just don't understand the way the city is run.
Gayle M. Montgomery August 30, 2012 at 06:07 AM
I guess it is up to the Courts to determine the merits of the case, and of course discovery could disclose documents to the parties of interest. But it seems to me a amicus brief in the interests of the citizens could be filed to at least get copies of the subject documents and intercede on behalf of the citizens who may have to bear this cost. I am neither blaming nor absolving any party without seeing documents. Can the Patch get them under a FOIA type clause. Would be great if they were PDFed and available.
Steve Buckner August 30, 2012 at 04:17 PM
Gayle, Great Idea, I have made many post about how much money we spend in court. The City Attorney is a very busy man, on our tax dollars. Every year my tax bill goes up and up and up. I am done with Contributing to this mess we call Monrovia. Off to Brookings Oregon, 30 acers on the river. Wish you all the best.
Gustav Hellbro August 30, 2012 at 05:20 PM
I seem to recall that the Gold Line was stepping around a real estate deal with the City of Monrovia, and running with an "eminent domain" claim to get the land cheaper. Is it not the Gold Line that should be admonished for not sticking to the original terms of the transaction? Of course, who knows what goes on behind closed doors when large amounts of money is at stake?
Gayle M. Montgomery August 30, 2012 at 11:53 PM
Vaya con dios, Steve. Send pictures!
Gayle M. Montgomery August 30, 2012 at 11:55 PM
I think your point is valid, Gustav. It sounded to me that Monrovia and the developer got in bed with one another, and the GLCA ripped off the covers and moved the bed. There's been a lot of arrogance reported about GLCA. Could this be an exension of that? What is it Measure R I am thinking of?
Kate K. September 01, 2012 at 12:50 AM
In all this thread and the Star News articles as well, I see no mention of Monrovia's City Attorney by name. Who IS our City Attorney? And where was he/she in all these deals and contracts? Such matters should not have been left to our previous (and under-educated) City Manager, nor to our City Council. Someone with contracts skills should have been and still be involved, yet in all the years these Gold Line projects have been going on, we hear/read nothing from our City Attorney. Why?
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