Developers pay
city $2.7 million

But Harbor Court Developers still
owes an additional $10.45 million

By Gordon Y.K. Pang
Star-Bulletin

The city has received a cashier's check for $2,697,152.84 for back lease rent owed by developers of Harbor Court.

Harbor Court Developers, however, still owes the city an additional $10.45 million on an agreement to purchase all unsold fee interests on residential lease units by mid-1997.

"We made arrangements with the lender to advance the money," said G. Scott McCormack, Harbor Court Developers vice president.

The money handed over yesterday represents delinquencies dating to November 1996.

City Council members have criticized the administration of Mayor Jeremy Harris for failing to act and for not telling them about the delinquency.

Councilman Mufi Hannemann played a key role in settling the back lease issue. "I think the public's expecting us to do something about (the issue)," he said.

AHI Harbor Ltd. Partnership, Harbor Court's lenders, wants the city to sell the fee on all commercial properties at the complex -- including the popular Palomino's -- in addition to the residential units, Hannemann said.

"I said to them that it was important that the lease issue be settled first," Hannemann said, "to show good faith."

McCormack refused to comment on details of ongoing discussions.

Talks between the city and AHI Harbor had broken down, Hannemann said, and he was able to persuade McCormack and attorney William McCorriston to return to the bargaining table.

From there, city attorneys with the corporation counsel's office helped seal the collection.