Patterson sues Keystone for general plan money
by Nick Rappley | Patterson Irrigator
Jul 05, 2012 | 2028 views | 0 0 comments | 15 15 recommendations | email to a friend | print
Stormy skies loom over the Keystone Business Center on Saturday afternoon, March 24, 2012.
Lisa James / Patterson Irrigator
Stormy skies loom over the Keystone Business Center on Saturday afternoon, March 24, 2012. Lisa James / Patterson Irrigator
The city of Patterson has filed a $175,000 lawsuit against Keystone Corp., the owner of Keystone Pacific Business Park in western Patterson, for money that city officials say is owed for work on the city’s general plan two years ago.

The suit was filed June 20 in Stanislaus County Superior Court.

According to court documents, North Carolina-based Keystone initially promised in June 2007 to make a $350,000 contribution toward the city’s general plan. The company made a payment of $175,000 in December 2007 but failed to make a second payment of the same amount due in June 2008, according to court documents.

The general plan is a comprehensive city document created by community members and city leaders that sketches out what the city will look like in the future.

Deputy City Attorney Doug White, who handles litigation for the city, said the suit keeps the contract from falling off the books, as the collection is subject to a four-year statute of limitations, he said.

After filing the suit, the city requested a motion to “stay” — or put a hold on — the proceedings.

“We’re requesting it to be stayed in order to have a longer conversation,” White said this week. “I fully expect this will be handled outside of court.”

Keystone’s lawyer, George Petrulakis of Modesto, said the case amounted to simple math and could be resolved along with a separate issue — developer fees Keystone said is owed to it by the city.

“Keystone feels it’s owed monies from development of the West Patterson Business Park,” he said, explaining that the corporation paid for more than its share of the business park’s infrastructure.

Keystone Pacific Business Park, which is 350 acres, is part of the 1,100-acre West Patterson Business Park.

Keystone Corp. paid for infrastructure improvements for the whole park when it was being developed. As other businesses moved in, developers paid the city for the earlier work — some of which Keystone was owed as reimbursement.

Petrulakis and White both said they thought those reimbursements and the money owed for the general plan — which are unrelated — could be resolved with one discussion involving both subjects.

“We consider it to be an amicable situation,” White said.

Petrulakis agreed.

“Everybody’s going to work on it and work out the details,” he said.

Keystone Pacific Business Park, which broke ground in October 2003, landed its first tenant, Jonathan Homes, in February 2005.

It is home to several local and national businesses, including Kohl’s and CVS distribution warehouses, Del Puerto Health Care Center, telecommunications company Frontier Communications, GEA Westfalia Separator, a Patterson Fire Department station, Patterson Joint Unified School District administration offices, and furniture maker HPL Contract.

News reporter Nick Rappley can be reached at 892-6187, ext. 31, or

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