SAN LEANDRO, CA—The city and its redevelopment agency have agreed to pay $7.75 million to a private family trust to settle a dispute over a deal that sought to bring a movie theater to the Bayfair Center.  

According to the San Leandro Daily Review, the estate of Douglas M. King and members of the King family had sought $46.8 million from the redevelopment agency in a lawsuit filed in January 2012. The suit claimed that the center’s former owner, Bayfair 580 LLC, had not made lease payments after 2011 for use of a 3.7-acre parcel in the center’s parking lot.

The redevelopment agency had been trying to bring a movie theater to the then theater-less Bayfair Center, and use at least a portion of the parcel. The redevelopment agency in 2000 signed an agreement guaranteeing that the lease payments would be made to the family, city staff said. The Century 16 Bayfair movie theater was built in 2001 on property owned by the center.

When Bayfair 580 defaulted on the lease in 2011, the Kings looked to the redevelopment agency for payment, and then to its successor agency after redevelopment agencies were dissolved by the state last February.

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