October 30, 2009 - November 5, 2009
Volume XII, Issue 32
In This Issue...

Capitola Says No to Another Rispin Extension Request
Crimebeat

Environment

Newsmakers

People


BREAKING NEWS: Capitola Says No to Another Rispin Extension Request
Capitola once again told the developers who hoped to convert the Rispin mansion into a boutique hotel that the city is no longer interested.

The city's redevelopment agency had previously determined that its agreement with Barry Swenson Builder and Ron Beardslee was automatically terminated when the developers did not begin work on the project by the Sept. 29 deadline and sent a letter to that effect Oct. 9. Still, Swenson vice president Jesse Nickell tried to buy more time to put together financing by attempting to once again invoke force majeure, claiming that economic forces beyond the firm's control impacted its ability to begin on time.

Nickell first used the "act of God" argument after a late May fire delayed the project start. The city council, acting as the redevelopment agency's directors, set the September deadline in a compromise.

Bank of the West declined to loan money for the project, estimated to cost between $14 million and $15 million for a 25-room hotel in what is now little more than a burnt-out shell. The city owns the six-acre parcel and had planned to put as much as $4.5 million into the project.

Nickell asked for a year's extension to Sept. 29, 2010.

The city said 'no' after a special closed session Oct. 30. The city maintained its position that the agreement has already been terminated and refused to reinstate it, according to a letter issued Nov. 2.


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