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Council approves $200,000 settlement in La Hacienda mobile-home park bankruptcy to complete sale to Self-Help Enterprises
Summary
In closed session the council approved a $200,000 settlement to resolve disputes in the Chapter 11 bankruptcy of La Hacienda Mobile Estates LLC and enable sale of the park to Self-Help Enterprises, as directed by the bankruptcy court.
The City Council reported that in closed session on June 12 it approved a settlement to resolve outstanding claims tied to the Chapter 11 bankruptcy of La Hacienda Mobile Estates LLC and to enable the sale of the mobile-home park to Self-Help Enterprises. The settlement will be paid to the Chapter 11 trustee to finalize conveyance.
Details of action: the city attorney reported the closed-session action: council voted to approve a settlement agreement and payment of $200,000 by the city to the Chapter 11 bankruptcy trustee, Kimberly J. Houston, to resolve disputes and complete the sale of the mobile-home park to Self-Help Enterprises. The council vote in closed session was 6-0 (one council member absent for the vote), with the motion made by Council Member Esparza and seconded by Vice President Arias.
Why it matters: the settlement resolves litigation risks and supports the court-approved sale of the property to Self-Help Enterprises, the nonprofit developer expected to preserve or rehabilitate the mobile-home park. Council staff said the payment completes the city's obligations as approved in bankruptcy-court hearings.
Process notes: because the action occurred in closed session the council reported the public outcome: approval of the settlement and payment of $200,000; the city will comply with the court process and finalize documents in coordination with the bankruptcy trustee and purchaser.
