OCII to review Lennar SEC filings after commissioners raise subcontractor payment concerns

During the executive director’s report on July 7, OCII staff notified the commission that Lennar filed SEC materials indicating a plan to consolidate certain assets (including Hunters Point and Candlestick Point) and pursue an initial public offering for a new company, 5Point Holdings. Director Tiffany Bohe said staff is reviewing whether the filing affects existing development agreements and transferee provisions.

Bohe said OCII has transfer/assignment and guarantee provisions in its Phase 1 and Phase 2 disposition and development agreements that a transferee must meet, including experience, net worth and developer ownership and control requirements. She told commissioners that, based on an initial review of the public filings, the same CEO and CFO appear in the filing but staff has requested additional information from the developer to confirm compliance with OCII’s contractual thresholds.

Commissioners asked whether OCII would be asked for letters of support or other materials and whether the commission could use its review of any transfer to press developers on unresolved complaints — notably subcontractor nonpayment raised earlier in the meeting. Bohe said transfers require compliance with the DDAs and OCII will review the filings under those contract provisions; staff confirmed it will assess whether the proposed transfer meets the agreements’ transferee and guaranty requirements. Commissioners expressed interest in ensuring subcontractors are being paid and suggested the commission could use its review leverage where appropriate.

Staff said filings became public July 2; OCII will continue its due diligence and follow its contract provisions for any consent required.