By Kristina Pritchett

After months of litigation, the city of Dana Point and the Headlands Reserve, LLC have entered a settlement agreement.

The settlement dismisses all complaints by and between the parties, who agreed the community of Dana Point “will be better served by spending resources improving public facilities,” according to a statement from the city.

The Reserve will contribute a $248,200 donation toward capital improvements to the city’s Community and Senior Center.

According to the statement, the city will need to spend an additional $200,500 of city funds to complete the center’s improvements.

In August, the city filed a lawsuit against the Reserve and developer Sanford Edward stated an indemnity agreement was not upheld. The lawsuit said he did not pay for some legal fees and costs incurred by the city while defending legal and administrative claims created by the Headlands project.

Later, Edward filed a counter lawsuit against the city saying the city “fraudulently billed” the developer more than $600,000.

In October, city officials announced they would enter mediation with Edward. In November, Edward withdrew his offer to mediate with the city and called it a “publicity stunt.”

The city agreed to bill the Reserve for reimbursed legal costs at the same rate the city pays its attorney. It also formally rescinded and withdrew its fraud allegation, including the personal allegation it made against Edward, concluding no fraud occurred.

The improvements to the center are estimated to be completed by August 2018.

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