County dismisses Riverwood lawsuit
Litigation over the large flat spot east of Highway 395 at the northern entrance of Douglas County wrapped up on Tuesday, according to a statement issued by District Attorney Mark Jackson.
Jackson said the county filed a notice voluntarily dismissing its remaining claims against Riverwood Partners filed Nov. 1, 2010.
Approved in 2007, Riverwood was a commercial project proposed to be similar to that across Highway 395 with Clear Creek and Carson Valley Plazas.
Commissioners approved a settlement that ended the $24.7 million redevelopment deal on Sept. 28, 2012.
As part of that settlement, the redevelopment agency paid developers $650,000 in exchange for ending an owner participation agreement on 4.6 acres on the Riverwood property.
The county made the decision to voluntarily dismiss its complaint which had challenged the validity of the development agreement entered into with Riverwood Partners based on an evaluation of the economic, legal, and time considerations of bringing this matter to a litigated conclusion.
“The dismissal is in the best interests of the public and the general citizens of Douglas County for many reasons,” Jackson said.
As a result of the dismissal, the county will avoid future attorney’s costs and will be able to assert the invalidity of the development agreement approved in 2007.
The development agreement and the tentative commercial subdivision map for the project will expire.
The county sued Riverwood Partners, challenging the validity of the development agreement. The suit was never answered, but an agreement to suspend litigation was in effect until Feb. 20.
“Since the filing of the complaint to the present, the county made a number of good faith efforts to resolve the remaining claims without success, despite the conclusion of litigation between Max Baer Productions and Riverwood Partners and Riverwood Redevelopment,” Jackson said.
In September 2012, the parties agreed to terminate the owners participation agreement, releasing the county’s redevelopment agency from making payments totaling $24.7 million.
Douglas County commissioners are scheduled April 2, to ratify the notice of dismissal filed with the Ninth Judicial District Court.