Citi raises stakes in Corica Park, Greenway Golf Responds

The first part of the series.

Last May, the city of Alameda expressed its displeasure with Greenway Golf Associates by filing a “verified complaint” to the state Supreme Court. The city notified the court that Greenway had violated the lease agreement for the Corica Park golf course. In the lawsuit to court, city attorney general Yibin Shen alleged that Greenway and its majority shareholder Umesh Patel had violated the lease agreement with the city in three ways.

A golfer drives a buggy along the southern part of Corica Park on Bay Farm Island in Alameda. Adam Gillett’s photo.

City files allegations of violating the lease of Corica Park

First, the city alleged that Greenway had breached its obligations by failing to “resolve the drainage and irrigation problems of the Northern Trail.” In conjunction with this allegation, the city notified the court that Greenway had also failed to provide the city with updated construction schedules and monthly evidence of expenses incurred by Greenway. The city noted internal disagreements between the majority and minority Greenway shareholders, and stated that these differences prevented Greenway from efficiently undertaking the task of addressing the North Course’s problems.

Second, the city notified the court that Greenway had completely finished the job for some time, and had breached its lease agreement by “pausing construction on the North Course” for about six months – from December 2021 to May 31 this year. The city stated that these actions “constitute a material breach of Greenway’s lease agreement.”

Third, the city alleged in its complaint that Greenway “through the defendant representing its majority shareholder Patel” had failed “to provide the city with access to all of its books and records as they relate to the operation of (the golf complex).) This refusal, “consists of the alleged city in its complaint. A material breach of the (Greenway) lease agreement.

The city asked the court to issue a temporary restraining order requiring Greenway to allow “all (Greenway) books to be reviewed immediately.” In addition, the city asked the court to request that Greenway “provide a complete and appropriate schedule for the construction of the North Course and allow the City to have access to all (Greenway) books and records and the right to continuously audit it.” The city told the court that if the review revealed that Greenway was unable to perform its obligations, the city would have “the right to terminate the agreement.”

Greenway Golf responds

Alameda Post - City sues Greenway at Corica Park, Greenway files mutual complaintGreenway responded on September 9 with a mutual complaint, which was released to the public on September 20. The company told the court that it had “performed all material obligations under the lease.” The joint complaint told the court that one section of the agreement with the city “provides that Greenway will have the exclusive right and authority to operate (the golf complex) as (Greenway) sees fit.”

Greenway alleged that the City violated this section of the lease by falsely accusing the company of making improper hiring decisions, improperly raising prices, and committing irregularities in its accounting system.” Greenway told the court that the city is using the recent false accusation to demand an audit. The complaint also charged The city intersected by intervening in what Greenway described as its exclusive right to determine the means and methods of constructing the golf course at Corica Park and to determine the timetable for completion of the work.

Additionally, Greenway claimed that the city was interfering with its right to administer and monitor the day-to-day operations of the complex. Greenway also told the court that the city had advised Greenway that it did not need to approve Patel’s April 2020 acquisition of a majority of Greenway’s shares. The complaint stated that this year (2022) the city had falsely claimed that Greenway had never notified it of the Patel purchase.

Greenway also alleged that the city had violated the implied covenant of the pact of good faith and fair dealing. The complaint stated that this had forced Greenway to spend time and money responding to the city, rather than giving its full attention to the golf complex. In addition, Greenway’s filing told the court that the city had also damaged the company’s reputation with “false or unfounded accusations about the company’s financial condition.”

More is coming

Alameda Post He received responses to the issues surrounding this case from Sam Singer, president of Greenway’s public relations firm, Singer Associates. The second part of this story will be published as soon as it is published Mail Discuss the cases with the city attorney’s office.

Dennis Ivanowski is an award-winning East Bay historian and newspaper editor Alameda Post. reach it in [email protected]medapost.com. His writings are collected at AlamedaPost.com/Dennis-Evanosky.

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