HomeMy WebLinkAbout14 SPECIAL COUNSEL 02-19-08AGENDA REPORT
MEETING DATE: FEBRUARY 19, 2008
TO: WILLIAM A. HUSTON, CITY MANAGER
FROM: DOUGLAS C. HOLLAND, CITY ATTORNEY
SUBJECT: LETTER CONSENTING TO SPECIAL COUNSEL'S REPRESENTATION
OF VARIOUS CLIENTS IN MATTERS THAT ARE DISTINCT AND
SEPARATE FROM THE INTERESTS OF THE CITY AT TUSTIN
LEGACY.
SUMMARY
Special Counsel to the City, the law firm of Steefel, Levitt & Weiss, currently provides legal
services regarding unique real property transactional matters at Tustin Legacy. Special
Counsel has merged with the law firm of Manatt, Phelps & Phillips, a firm that has an existing,
ongoing relationship with certain clients in matters unrelated to Tustin Legacy. These clients
include Shea Properties, AvalonBay Communities, Inc., Alton Associates, and Lennar Homes
of California, Inc. The City's consent is required for Special Counsel to continue to represent
the City as well as the existing clients of Manatt, Phelps & Phillips.
RECOMMENDATION
The City Council consider the approval of a letter consenting the to Manatt, Phelps &
Phillips ("Manatt") as the successor law firm to Steefel, Levitt & Weiss, the City's Special
Counsel, continuing representation of Shea Properties, Alton, AvalonBay, and Lennar in
certain matters unrelated to Manatt's work for Tustin, and as of February 1, 2008, Manatt's
simultaneous, yet separate, representation of Tustin.
FISCAL IMPACT
None.
BACKGROUND
The City's special counsel on certain unique real estate transactional matters at Tustin
Legacy, Steefel, Levitt & Weiss, has recently merged with Manatt. Manatt has an ongoing
client relationship with Shea Properties, Shea Homes, and Shea/Baker Ranch Associates
LLC (collectively, the "Shea Entities"). Manatt has provided advice and representation to the
Shea Entities in connection with various land use matters. Manatt desires to continue to
represent the City in connection with Tustin Legacy, in which Shea Properties is involved as
the Master Developer, as well as the Shea Entities on other unrelated matters. Manatt has
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agreed that it will not represent Tustin Legacy Community Partners or any of the Shea Entities
in connection with the Tustin Legacy Project.
Manatt also represents two developers of residential projects in the IBC, Alton Associates and
AvalonBay Communities, Inc. and which are the subject of litigation initiated by the City of
Tustin and Newport Beach. Manatt also represents Lennar Homes with respect to the
administration of an affordable housing program in Tustin and in an IBC development lawsuit
to which the City is not a party but has an interest in the outcome. Manatt seeks the City's
consent of Manatt's continuing representation of these three clients in these matters and
waive any conflict of interest that may exst as a result of this representation.
Manatt has agreed to construct an ethical wall between the attorneys in the firm who would
continue to represent the City and those who represent the Shea Entities, Alton, AvalonBay,
and Lennar. In the event that a dispute arises in connection with any matter unrelated to the
Tustin Legacy Project as to which the City's consent would extend, Manatt has acknowledged
that it will not represent any party to such dispute.
A letter requesting consent to Manatt's continuing representation of the Shea Entities, Alton,
AvalonBay, and Lennar is in the process of being reviewed and negotiated with this office and
will be forwarded to the City Council in its final form on or before the Council's meeting on
February 19 with this Office's final recommendation.
DOUGLAS C. HOLLAND
City Attorney
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