An appellate court on Tuesday issued an opinion that removes the legal hurdles to further development of the long-stalled Sunnyvale Town Center.
The 36-acre shopping mall in downtown Sunnyvale is bordered by Mathilda, Washington, Sunnyvale and Iowa avenues. It is occupied by office buildings and Target as well as partially constructed apartments but otherwise sits partially undeveloped because of a lawsuit filed a few years ago.
According to a press release issued Tuesday by the city of Sunnyvale, “The 6th District Court of Appeal issued a long-awaited opinion today in the Downtown Sunnyvale LLC versus Wells Fargo Bank case, finding in favor of Wells Fargo on all issues.”
In a written statement, Sunnyvale City Manager Deanna J. Santana said: “This is a very significant decision that brings our community a big step closer to fully achieving the vision for the Town Center that it deserves,”
City Attorney Joan Borger added that “our hope is that the court’s decision clears the way for this project to finally move forward.”
The Town Center was initially developed by a joint venture of Sand Hill Property Co. and Rreef, but the companies were forced to abandon the project in 2009 after they defaulted on a $108.8 million loan from Wells Fargo.
Wells Fargo took ownership of the property after no one bid on it at a foreclosure auction in 2011. As a result, Sand Hill founder Peter Pau sued the bank, a move that essentially halted additional development of the Town Center while a detailed and often delayed appeals process followed.
Although the appellate court’s ruling may mark the beginning of a new chapter for the Town Center, Santana stressed there is still work to be done.
“Our goal is to see this project come to fruition so we will continue to do whatever we can to collaborate with all of the parties involved and put Sunnyvale in the best position to realize the full potential of its downtown,” she said.
After 30 days, unless the court grants a rehearing, the decision will become final. Both sides then will have 10 more days to request the California Supreme Court to hear the case.
