Why Would Toll Brothers Sue to Block Construction at the Promenade?
Toll Brothers recently filed papers in court to block the construction of the Promenade based on a variety of factors noted in their petition. As many Around Dublin readers have noted, there would seem to be other factors at play for Toll Brothers’ legal action against the City of Dublin. After conducting some research, it appears that this is the case. Here is the sequence of events that led up to Toll Brothers’ decision to block construction at the Promenade:
- Toll Brothers entered into an agreement with Charter Properties a few years back to purchase options on three parcels of land – Sorrento West, Sorrento East, and the open parcel at Dublin Boulevard and Lockhart Street.
- As the economy started to turn, Toll Brothers decided that they did not want to buy the Sorrento East and Dublin Boulevard-Lockhart Street parcels. Just as a prospective homebuyer can lose their deposit when backing out of a purchase agreement, Toll Brothers lost their money when they walked away.
- Toll Brothers sued Charter Properties to try and get their money back – prompting Charter Properties to have Toll Brothers remove their sales offices and construction trailers from the land that is planned to become the Promenade.
In April 2009, the courts affirmed Charter Properties’ decision to keep the money that Toll Brothers had paid for the land options. Immediately after the court decision, Toll Brothers started litigation against the City of Dublin to block construction at the Promenade.
Based on this sequence of events, it appears that the Promenade may be a pawn in the ongoing chess match between Toll Brothers and Charter Properties.
1:50 PM on June 5th, 2009
I spoke with a Toll Brothers representative about this over the weekend. She said Toll was told that the parking garage to be built next to building 8 was to be two stories above ground, two stories below. And then the plan suddenly changed to four stories. The Promenade was a good selling point for Toll, and now there is the possibility of an entire building of condos having a parking garage for a view.
There could be more at work here, sure. I am not privy to behind-the-scenes details. But regardless, it seems in the best interest of Terraces condo owners that Toll delays this construction… and potentially sways the Promenade developers to use the original two-story parking garage plan.
2:01 PM on June 5th, 2009
Random question: Why would ClubSport want to be in the Promenade when all of the condo complexes out there have their own fitness centers? I would assume most people wouldn't be interested in paying $100 a month for something they already paid for with their home purchase…
2:11 PM on June 5th, 2009
Have you seen the gym at the Villas?
The gyms that are in the surrounding communities do not have everything Club Sports will have. Also, Club Sports aims to attract clients from other parts of the Tri-Valley — not just the people around the Promenade.
Charter has every right to keep Toll Brothers' money, if Toll Brothers backs out of the deal. When you sign a sales agreement with Toll Brothers, you have to pay a deposit. If you walk away from the deal after they finished your home, you forfeit your deposit money.
What I don't understand is why is the City of Dublin being dragged into this private dispute between Toll Brothers and Charter.
2:14 PM on June 5th, 2009
I get that ClubSport wants to draw from other parts of the Tri-Valley, but there is already one in Pleasanton and San Ramon (though, I think San Ramon has different owners). Whatever, though. They can build there if they want. It just seemed like an odd business move to me.
2:16 PM on June 5th, 2009
To anyone that is at into working out…2 treadmills, a bike, and a elliptical, isn't really what I call a gym!! Club Sport would be a huge asset, and is well worth the $240 a month for a family to be able to take all of the great classes they offer, the pools and childcare is a huge plus!! I live in the Courtyards and if you have taken a good look at the pool with all of the black algee it has EVERY year, you too would rather swim somewhere else…
3:00 PM on June 5th, 2009
Can someone clarify – is Sorrento West the land that the Promenade will be built on? I am unsure which is Sorrento West or East…
Seems funny that Toll is upset that they could not get their option deposit back so they decide to sue the City of Dublin… how is delaying the construction going to get them their deposit back??
3:06 PM on June 5th, 2009
f**k Toll and the Promenade. The retail part should have gone up with the resident units. And now we have to wait frickin further?
3:09 PM on June 5th, 2009
Hi Erika,
Excellent question. Sorrento East, Sorrento West, and the Promenade are three distinct parcels of land. Sorrento West is where you currently see active new home construction. Directly East of Sorrento West is Sorrento East. It has been graded, but what will ultimately go there is anyone’s guess. Finally, the Promenade is the parcel that is flanked by the Villas and the Cottages to the West, the Courtyards and the Terraces to the East. Thank you.
3:12 PM on June 5th, 2009
It is amazing how Multi-million businesses would do such things out of spite. Maybe Promenade can go with a two story parking for now to give them a sense of victory and once toll is done selling their units, can raise it to 4 levels.
3:16 PM on June 5th, 2009
Thank you for the clarification. I am still lost as to why Toll is suing Dublin… what is that really going to do for them? They already tried to get their deposit back from Charter and lost… end of story. I am just frustrated that Toll would delay the start on Promenade out of spite, if that is what they are doing.
I am sure there is more to it… but still frustrating for those of us who live in the area!
3:19 PM on June 5th, 2009
First of all, why should Charter and the City have to give up anything? That's just bad negotiation. Toll Brothers is in the wrong, and they know it. Holding up the Promenade, which hurts their own sales, is a move of desperation. Now we have proof of what we've been suspecting all along.
Also, even if we give into what Toll Brothers is demanding on the surface, all that means is that they will find some other reason to bellyache to the court and help make the lawyers rich. Seriously, if what they're after is their down payment, they won't be happy until they get it. It's just too bad that they have to drag us into this mess with Charter. It is disgusting.
3:26 PM on June 5th, 2009
John, thanks for this revealing update. I recognize the Sorrento parcels from your earlier posts, but what is this new land at Dublin Boulevard and Lockhart Street? I don't think you've ever talked about it here. Thanks again.
4:19 PM on June 5th, 2009
Tralee, Grafton Station… does Dublin need another big retail complex right now? It doesn't seem to be able to fill the ones it's got!
4:25 PM on June 5th, 2009
Oh look, a Toll Troll is amongst us! At a time when the City is facing a huge budget crunch, can we afford to be dragged into court by the Toll Trolls? I rather my tax dollars go toward schools and essential services than the lawyers.
5:01 PM on June 5th, 2009
Hi Anonymous on June 5, 2009 3:26 PM – the parcel located at the intersection of Dublin Boulevard and Lockhart Street is the one directly behind of The Groves on the north side of Dublin Boulevard. There’s a water mitigation channel that runs through the property that could be turned into a beautiful water feature once the parcel is developed – sort of like how the channel running adjacent to Fallon Sports Park will look like a meandering river with lush landscaping.
The Dublin Boulevard-Fallon Road parcel is zoned for medium-density residential with 624 planned units. The Around Dublin team will be covering this as more details become available.
Thx, John Z.
5:06 PM on June 5th, 2009
Toll can go F%&* themselves. They are doing the same as they have done to others. But this time it will affect their sales like no other once Kron4 gets wind of this. I will let them know.
They are are suing over a deposit, and such they are holding on to Sheryl S's deposit. The time has come for all villagers to unite and let everyone know what scumbags Toll Brothers are.
5:08 PM on June 5th, 2009
Too funny. I think the "Toll Trolls" got to this thread first. Just look at the first comment. I suppose the Terraces residents should be thanking the "Toll Trolls" for spending their own money to delay the Promenade on behalf of the residents. How magnanimous of them! Listen, bottom line, friends don't let friends buy from the "Toll Trolls." I hope Dublin's leadership has learned a valuable lessons about developers. They may host parties for you, but as soon as you get in their way, they will sue your pant suits off.
9:46 PM on June 5th, 2009
Yes they will sue your pants off after Johanna the devil puts her curse on you.
The real deal is only 4 or 8 units are affected since a a handful of units would face the garage. Photo to post soon with permission of Around Dublin…
9:55 PM on June 5th, 2009
I am the first commenter and not a "Toll Troll." I am a potential home buyer in the Terraces complex and concerned with the situation. I sure as hell don't want a parking garage view.
10:03 PM on June 5th, 2009
Hi Joseph – would you be interested in posting the photo in a comment or on the Around Dublin Facebook Fan Page with a link in the comment?
Either approach would be okay (as long as the subject is not a person).
Thx, John Z.
1:26 PM on June 6th, 2009
John. what can dublin ranch do to force the city to push the construction forward. Can you please consult with city legal council. The is holding back desperatly needed sales tax and poperty taxes.
5:07 PM on June 6th, 2009
Hi Anonymous on June 6, 2009 1:26 PM – it would be difficult to force the City of Dublin to do anything given Toll Brothers’ aggressive legal tactics. The key will be for the Dublin Ranch community to show their support for the Promenade Phase I project – the ClubSport building, the Mercantile building, and most importantly the parking structure.
Toll Brothers’ argument rests on the pretense that they are suing to block construction of the Promenade for the benefit of the nearby homeowners. If enough homeowners email the City Council, write letters to the Planning Department, and/or speak in support of the Promenade project at the next public hearing (if only for a few moments), then Toll Brothers will not be able to use the “public benefit” argument if they choose to continue litigation.
I’ll be posting an article soon providing more information about the Promenade.
Thx, John Z.
7:07 PM on June 6th, 2009
Should we have a signed petition drive to show the support for Promenade and the parking structure? Writing letters individually would be good but to also have an official show of strength might have more impact.
8:58 PM on June 6th, 2009
Hi Anonymous on June 6, 2009 7:07 PM – agreed, a petition can be a powerful tool. There is strength in numbers. A petition full of signatures, letters to the Council and Planning Department, and folks speaking at the next public hearing are critical to the realization of the Promenade.
Thx, John Z.
1:49 PM on June 9th, 2009
Do we know how much money Toll lost when they decided not to go through with the transaction?
2:16 PM on June 9th, 2009
Hi “Stop…” – I haven’t heard how much money was involved with the land options
Thx, John Z.
1:46 PM on June 10th, 2009
I am sympathetic to the situation the City of Dublin is in. As much as I hate Charter for jamming that nasty Oak Grove project down our throat, I find myself oddly agreeing with the court's ruling in this particular case. Must be a cold day in Hell.
If I were living in Dublin, the first thing I'd do is to find out if Toll Brothers is benefiting from a impact fee deferral program. Many cities are following Pleasanton's lead in allowing developers to pay impact fees as they sell units. These deferrals are essentially interest-free loans from the City to the developers if you think about it. If Toll Brothers is suing Dublin, why should Dublin continue to fund the litigation indirectly?
http://www.ci.pleasanton.ca.us/pdf/legal-program-impactfees.pdf
It's never pleasant to be taken to court by a developer. Trust me I know.
9:04 PM on June 11th, 2009
The only possible question in the case should be "When does/did the option expire?".
If Toll had until 2010 to purchase, they are under no obligation to do anything until the time expires. Just like in the financial market there is a time value of money and Toll should be compensated to vacate the option contract (if there is time remaining).
If the option has expired, it's tough luck for Darth Toll. Purchasing an option has the same risk profile as putting a chip down on the roulette wheel. If my number doesn't come up, I don't get to pick up my chips.
I hope the City of Dublin has a countersuit ready to go as a result of the economic losses if the suit is deemed frivolous.
11:51 AM on July 3rd, 2009
The Dork Brothers as we all know them now. Biting the hands of their partners (Dublin residents, Villages homeowners, City of Dublin) by proceeding with this silly lawsuit to settle an agenda. It will bite them in the a**.