The developer of Osio Plaza begins paying back their past due loans to Monterey, finally.

In the fall, lovers of independent films and good coffee were served with some heartbreaking news: Cafe Lumiere and Osio Theater were shutting down permanently—and not because of the pandemic. The two businesses closed in part because they couldn't come to rental relief terms with their landlord and the Osio Plaza's developer, San Jose-based Green Valley Corporation. Part of the underlying issue was that Green Valley had been delinquent on loans to the city of Monterey since 2019. 

The developer owes the city a total of $2.5 million in order to create the multi-use Osio Plaza back in the late ’90s. The Osio Plaza is located downtown with retail space, a five-screen theater and an affordable housing component. 

The loans were due in September of 2019, but since the first month of delinquency, documents obtained via a California Public Records Act request show that Green Valley was trying to get out of paying back the loans, instead offering to hand over full ownership of the property to the city. They owed Monterey $380,000.

That changed on Jan. 14. After months of negotiations between Green Valley and Monterey, the city's property manager, Janna Aldrete, tells the Weekly the developer is now current on their loan to the city, having paid just over the $380,000.

Aldrete writes, "The city is hopeful that Green Valley will remain current in its loan payments since the revenue received from this property helps fund projects in the city that support low- and moderate-income households." 

So far there are no new tenants lined up for the property. Green Valley Corporation did not immediately respond to requests for comment.