City:

Huntington Beach’s city attorney has declared that the city should receive a percentage of trainers’ fees from the Huntington Central Park Equestrian Center, siding with claims made by a City Council candidate who sued the city and center.

In a March 30 letter to center owner Mary Behrens, Community Services Department Director Jim Engle wrote that the city attorney had ruled that, per a clause in a 1982 agreement, 4% of trainers’ training revenues should go to the city.

The agreement states that the center must pay the city 4% of gross receipts from rentals, and that “fees received for individual and group instruction� are included in that category.

“We realize this type of payment is not standard in the equestrian center industry, but the terms of the agreement indicate the city should be receiving 4% of the training revenue,� Engle wrote, adding that the rule would go into effect May 1.

Behrens, in a letter back to the city, argued that the issue of trainers’ fees never came up in past audits of the center and that it would cause the center financial hardship to implement the new policy.

She also attacked candidate Gregg DeLong’s claims, calling them “meritless� and “politically motivated.�

City Atty. Jennifer McGrath said DeLong’s opinion had no bearing on the city’s ruling.

“It was a matter of reviewing the agreement to determine what was the appropriate compensation due,� she said. “I will give credit to Mr. DeLong that he brought the issue to the city’s attention.�

The trainers, she noted, had successfully sought a 90-day extension before having to pay fees to the city. Once that period was up, McGrath said, the city expected to collect revenues.

An attorney for the center did not return calls seeking comment. However, Sonja Bostwick, the head trainer for J. Alden Enterprises at the center, called the city’s ruling unfair.

“We pay a lot of fees to be at this stable,� she said. “We pay for our tack rooms. We pay a lot of things, which goes to Mary, which goes to the city. So we’re already paying it. It’s like being taxed twice.�

Bostwick added that the extra payment would be particularly hard during a recession.

“Economic times are really tough, and it might put some of us out of business, to be honest,� she said.DeLong, a former boarder who has been evicted from the center after repeated clashes with management, filed a claim Jan. 4 against the city and center alleging that subcontractors at the center owe the city more than $1.5 million in revenue.

He also demanded the release of the center’s operating statements from 2005 to 2009, which an Orange County Superior Court judge blocked.

DeLong said he felt partly vindicated by the ruling, but said he still wanted an explanation for why the city would not collect retroactive fees from the trainers.

“I’ve pointed out for more than two years now that this money is owed to the city,� he said.