Sparks to consider last offer from Syufy

Monday, Dec. 27, 1999 | 9:27 a.m.

As part of the agreement to develop the plaza in front of Syufy's Century 14 Theater, Syufy was supposed to place a $35,000 good-faith deposit into an escrow account. If Syufy failed to develop the plaza, the city would keep the money and buy the land back at $2 per square foot for sale to another developer.

However, Syufy never made the deposit and has refused to pay it, citing circumstances beyond its control in its failure to develop the plaza, the Daily Sparks Tribune reported.

The city council directed acting Sparks City Manager Shaun Carey to negotiate for the deposit in lieu of costly litigation that could tie up sale of the land back to the city.

Carey secured an offer from Syufy in which the developer and the city would jointly donate $8,600 to the Sparks Youth Sports Foundation. Syufy's share would be $6,200 and the city would donate $2,400 in the interest it would have gotten on the $35,000 deposit over the same period.

First American Title Company, which failed to collect the deposit from Syufy would also contribute, bringing the balance to $10,000. The council rejected that offer and sent Carey back to negotiate with Syufy.

Carey presented the council with Syufy's final offer to donate $6,200 for artwork on the plaza. The title company would contribute $2,600 and the $35,000 deposit would be waived.

"That's only about $26,000 short of what he owes us," said Councilman John Mayer.