Opinion ID: 734105
Heading Depth: 2
Heading Rank: 1

Heading: The HomeFed Agreement

Text: 5 On January 15, 1992, HomeFed and PortAmerica Associates reached a settlement agreement in negotiations arising out of a mortgage default by PortAmerica, the HomeFed Agreement. PortAmerica Associates had defaulted on a loan of $20,685,000 from HomeFed for the development of an area of Prince George's County immediately across the Woodrow Wilson bridge. The project included two major land masses, the HomeFed tract, which was purchased with the loan from HomeFed and used to secure the note, and the Upper tract. By virtue of the settlement agreement, HomeFed foreclosed upon and took title to the HomeFed tract. The agreement also established Waterview, permitted Waterview to proceed with obtaining the necessary permits and approvals for the development of the HomeFed tract, and gave Waterview exclusive marketing rights and an exclusive option to purchase the HomeFed tract for a period of eighteen months from the date of the HomeFed Agreement with three possible extensions of six months each. 6 On July 6, 1992, by order of the Office of Thrift Supervision, the RTC was appointed receiver for HomeFed Bank, F.S.B. and conservator for HomeFed Bank, F.A. In February 1993, representatives of the RTC and Waterview held a meeting. The RTC indicated that it was interested in a quick sale of the HomeFed tract rather than the long-term option held by Waterview under the HomeFed Agreement. The RTC advertised the land by listing it for sale in its Winter/Spring 1993 catalogue for six million dollars. Waterview claims that advertisement violated its marketing and purchase option rights under the HomeFed Agreement.