MAMMOTH LAKES, Calif. (AP) — The Sierra Nevada ski resort of Mammoth Lakes is looking at a mammoth bill.
The Los Angeles Times says an appeals court last month ruled that it must pay $30 million in a breach-of-contract lawsuit. That’s about twice the size of the town’s annual budget.
The Dec. 30 decision said the town of 7,500 tried to back out of a 1997 agreement that gave a developer the right to develop a hotel and buy land in return for improving the local airport.
Developer’s spokesman Mark Rosenthal declined to comment to the Times, saying Mammoth Lakes is going to appeal to the California Supreme Court. The town has until Feb. 8 to file the petition.
It’s also seeking advice on bankruptcy and studying proposals such as raising taxes and cutting services to pay the judgment.
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