1. Sounds like a greedy land developer was trying to squeeze blood from a stone.
Per the city of Mammoth Lakes press release:
"Although invited on multiple occasions, MLLA refused to participate in the AB 506 mediation to discuss settlement or demonstrate to the mediator and the participating creditors that the Town can afford to pay more."
Mammoth Lakes was devastated by the real estate bubble popping. It was so sad to drive through this beautiful ski town this Christmas and see all the vacant houses. No one wants vacation homes in the mountains now, when they can barely afford to pay for one house.
I bet MLLA's hands weren't exactly clean in the real estate bubble, and if Mammoth Lakes denied them a right to develop back in 2006, then it probably saved MLLA's bottom line. Otherwise, they'd be upside down like everyone else is in Mammoth Lakes. I hope MLLA gets nothing in the bankruptcy.