Excerpt:

SunCal has been working with Alameda for approximately three years and is familiar
with the City s policy and regulatory environment. As a result, the mutually agreed upon
30 business days should be sufficient time for SunCal to prepare an OEA consistent
with the City Charter. If a 60-day tolling period is granted by Alameda , SunCal will have
until May 21 , 2010 to cure its default by submitting an OEA consistent with the City
Charter and Density Bonus Ordinance. As a result of granting a 60-day tolling period
less than 60 days would remain before the July 20 , 2010 ENA termination. Alameda
would be challenged to review and analyze the revised OEA submission and continue
negotiations on a resulting DDA within this limited time period. Further, this reduced
timeframe would also make it difficult for Alameda and SunCal to meet their mutual
obligations under the ENA, thus possibly anticipating a third request by SunCal for an
ENA extension.

Given the decisive defeat of the Initiative at the polls , SunCal' s pending default under
the ENA, and concerns regarding other SunCal development projects in bankruptcy or
subject to foreclosure proceedings , circumstances do not presently exist under which a
tolling of the cure period can be recommended.