City to retake De Anza Cove real estate

After an 11-year-long legal battle, the fight over De Anza Cove in Mission Bay is over.

On Tuesday, December 16, city-council members will sign off on a $32-million payout in relocation fees for mobile-home owners. By doing so, the city will be allowed to retake control of the prime piece of land in the middle of Mission Bay.

The land dispute began in 2003, shortly after the park's lease with the city expired. The city chose not to renew for several reasons, one of which being the low rent that park residents were paying partly because of complex state laws protecting mobile-home owners from being forced from their homes. One of the tenets in the law requires the land owner to pay for the homeowners’ relocation and other mitigation fees.

City officials opted to fight paying tens of millions of dollars to retake the land. Owners stood their ground. Then in May of this year, a superior court judge ruled that relocation fees were required. In September, city officials offered to pay the residents $22 million in addition to legal fees. Again, park residents stood their ground.

Their decision worked out for them, according to the December 16 city-council agenda.

"The Court ruled that the Mobilehome Residency Law requires the City to compensate tenants to mitigate the impact of the closure of the mobile home park. The payment of the judgment will resolve all claims brought by these class members in this lawsuit."

The $32 million will come from the following sources: $11.8 from the De Anza Cove Operating Fund, $18.2 from a public contingency fund, and the remaining will be taken from the public liability fund.

Councilmembers are expected to finalize the deal during the 10 a.m. meeting.