After More Than a Decade, Colonies Legal Battle is Settled

After a near 10-year legal battle over the cost of developing a flood control area near the Crossroads Shopping Center in Upland, San Bernardino County and a handful of agencies have settled a civil suit.

The county has agreed not to challenge a judge’s decision to dismiss their lawsuit that claimed SANBAG, Caltrans and the city of Upland were “partially responsible for damages to a private developer during the construction of State Route 210.”

According to the Riverside Press-Enterprise, which has followed the shopping center saga for more than a decade, the suit was the county’s attempt to recoup some or all of $102 million they paid out to the Colonies Crossroads Inc., as part of a legal settlement with the developer Colonies Crossroads Inc. in 2006.

After that settlement, allegations of bribery began to surface. Currently Jeff Burum, 48, a general partner of Colonies Partners, L.P.; Paul Biane, 47, former San Bernardino County Supervisor; Jim Erwin, 48, former chief of staff to Neil Derry; and Mark Kirk, 36, chief of staff to Supervisor Gary Ovitt, are accused of manipulating votes and/or using threats to force the board to approve the large settlement in exchange for kickbacks.

It is being called one of the largest corruption cases in the county, and possibly in the state.

Meantime, the county had filed suit claiming the other agencies had been partially responsible for causing some of those damages.

That civil suit, however, dragged on, piling legal fees to already cash strapped government agencies such as Upland, who the Press-Enterprise reported had seen its reserves dwindle to $910,000.

San Bernardino County Supervisor chairwoman Janice Rutherford and San Bernardino Mayor Pat Morris, chairman of San Bernardino Association of Governments legal ad hoc, announced the settlement in a recent press conference.

“Our board unanimously agreed that it’s time to stop using the taxpayers’ money on lawsuits and to start using it for flood control and transportation projects that enhance the county’s ability to attract new industries and create more jobs,” Rutherford said through a news release.

The agreement also officially gives ownership of the 20th Street and 19th Street storm drains to the county, officials said. And finally, each agency involved with be responsible to pay for their own legal fees.

“We are very, very pleased to have this behind us,” said Upland Mayor Ray Musser through a written statement. “This settlement will free up city funding so it can be used on projects that improve our community and enhance the quality of life our residents enjoy.”