SunCal's reply to City's Default Notice, February 6, 2010

Excerpt:

We were shocked that we received a notice of default on February 4, 2010 for the Optional Entitlement Application (OEAOptional Entitlement Application) that we submitted on January 14, 2010 with the full knowledge of the Interim City Manager. The notice is littered with inaccurate and misleading statements. Moreover, the legal argument for determining the default is specious and relies on alleged requirements that simply do not exist in the ENAExclusive Negotiating Agreement. For example, there is no requirement in the ENA that SunCal submit a Measure A(1973) The actual text of what is known as Measure A is article 26 of the Alameda City Charter. It reads as follows: "Sec. 26-1. There shall be no multiple dwelling units built in the City of Alameda. Sec. 26-2. Exception being the Alameda Housing Authority replacement of existing low cost housing units and the proposed Senior Citizens low cost housing complex, pursuant to Article XXV of the Charter of the City of Alameda. Sec. 26-3. The maximum density for any residential development within the City of Alameda shall be one housing unit per 2,000 square feet of land. This limitation shall not apply to the repair or replacement of existing residential units, whether single-family or multiple-unit, which are damaged or destroyed by fire or other disaster; provided that the total number of residential units on any lot may not be increased. This limitation also shall not apply to replacement units under Section 26-2." compliant plan as is alleged in the NODNotice of Default.