At the Regular City Council Meeting of December 8, 2015, the City Council considered enforcement of the pending Notice and Order issued on July 2, 2013, for demolition of the unfinished structure on the above site. At that time, the City Council continued its consideration to May 24, 2016, to allow the parties to continue to negotiate agreements to restart construction on the site.

Since May 2016, the City Council has received various status updates on the status of the property over the last two years. One year ago, Brooks Street was interested in taking over the ground lease of the property from Cathay Bank to restart the construction of a new development on the property utilizing the existing skeleton structure at the site. At the November 24, 2015, Council Meeting, Cathay Bank reported to the City that a Purchase and Sales Agreement had been reached between Brooks Street and Cathay Bank to begin the process to renew the project. That action was to be followed by agreement(s) between Brooks Street (new lessee), Cathay Bank (existing lessee), and the Hoag Foundation (property owner).  The City Council then continued the matter to December 8, 2015. On December 8, 2015, the City Council continued the matter again to May 24, 2016, to allow the parties more time to negotiate.

Ultimately, the parties were not able to finalize a deal. Instead, litigation between Cathay Bank and Hoag Foundation ensued in January 2016, further preventing any continuation of construction on the site. As of May 24, 2016, various motions were pending before the court that could resolve the litigation between Hoag Foundation and Cathay Bank, which is otherwise set for trial on March 13, 2017. For example, Hoag's Motion for Summary Judgment had been scheduled for July 29, 2016.  Consequently, the City Council on May 24, 2016, continued its consideration of the matter until after August 30, 2016.

A few major events have occurred since the May 24, 2016, City Council meeting.  

On July 29, 2016, the Superior Court continued the hearings reported on above to November 18, 2016, and ordered the parties to mediation.  

On August 4, 2016, Cathay Bank assigned its interest in the property to Garden Grove Seniors Community, LLC (GGSC) and on August 9, 2016, GGSC acquired clear title in the ground lease pursuant to a foreclosure sale.  Thus, Cathay Bank no longer has an interest in the property.

It is recommended that the City Council:

• Continue its consideration of this matter until the end the year to allow GGSC to discuss development of the property with Hoag Foundation and the City.