There are no Exhibits
FORM 8-K
SECURITIES AND EXCHANGE COMMISSION
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report(Date of earliest event reported): July 6, 1998
MLH INCOME REALTY PARTNERSHIP VI
(Exact name of registrant as specified in its governing instrument)
New York 0-15532 13-3272339
(State of Organization) Commission File Number (I.R.S. Employer
Identification No.)
World Financial Center, South Tower
225 Liberty Street, New York, New York 10080-6112
(Address of principal executive office) (Zip Code)
Registrant's telephone number, including area code: (800) 288-3694
<PAGE>
Item 5. Other Events
On July 6, 1998, a Petition for Writ of Mandate (the "Petition") was filed
by Eugene R. Atherton, M.D. ("Petitioner") in the Superior Court of the State of
California, Orange County, against the City of Laguna Beach Council Members (the
"City Council") and others (Atherton v. City of Laguna Beach, et al., Action No.
796478), challenging the City's compliance with the California Environmental
Quality Act ("CEQA") in connection with its review and consideration of the
master plan (the "Plan") for the development of the land formerly known as
Treasure Island, a former mobile home community located in Laguna Beach,
California (the "Property"). The Petition seeks a Writ of Mandate vacating the
City Council's resolution approving the Plan. Treasure Island Associates
("TIA"), a joint venture partnership between MLH Income Realty Partnership VI
(the "Registrant") and an unaffiliated entity, and Merrill Lynch, Hubbard, Inc.,
an affiliated entity, and The Athens Group, an affiliate of Vestar-Athens
Resorts, L.L.C., a Phoenix, Arizona based real estate developer ("Athens"), are
named as "real parties of interest" in the Petition. TIA and Athens executed a
contract on June 2, 1998 for the sale of the Property to Athens.
Consummation of the sale is subject to several conditions, including
approval of the Plan by the City Council and the California Coastal Commission
(the "Coastal Commission"), and the expiration of all administrative appeal
periods and statutes of limitation relating to such approvals without the filing
of an appeal or a lawsuit, and there can be no assurance that a sale will be
consummated. The Plan was approved by the Laguna Beach Planning Commission (the
"Planning Commission") on April 15, 1998 and by the City Council on June 2,
1998. Since the Property is oceanfront property, the Plan must also be approved
by the Coastal Commission before the City of Laguna Beach can issue further
permits and approvals to implement the Plan. The filing of the Petition does not
suspend the processing of the Plan by the Coastal Commission or the processing
by the City of further permits or approvals to implement the Plan. Counsel for
the Registrant believes that the administrative record contains substantial
evidence to support the City Council's decision and will urge the Court to deny
the Petitioner's request for a writ of mandate. In the event that the Court
grants the Petitioner's request and vacates in full or in part the City
Council's resolution approving the Plan, further proceedings by the Planning
Commission and the City Council regarding the Plan would be required. The
outcome of any such proceedings cannot be predicted at this time. In the event
that there is no final resolution of the Petition by December 31, 1998, TIA is
no longer obligated to sell the Property to Athens and Athens is no longer
obligated to buy the Property from TIA. In such case, TIA may then determine to
sell the Property to another buyer.
The Registrant wishes to ensure that statements made regarding expected
future developments regarding the Property are accompanied by meaningful
cautionary statements pursuant to the safe harbor established in the Private
Securities Litigation Reform Act of 1995. These forward looking statements are
based upon current available data and reflect the Registrant's expectations that
the Plan will be accepted by the Coastal Commission and that the Property will
be sold to Athens. Actual receipt of such approvals and closing of the sale are
subject to future events and uncertainties which could materially affect the
ability of the Registrant to receive these approvals and consummate the sale.
Among the factors which could materially affect the Registrant's prospects for
receiving the approvals and closing of the sale are: (i) uncertainties regarding
the granting of approval by the Coastal Commission and further approvals by the
City Council and the Planning Commission required to implement the Plan, (ii)
possible delays in the administrative process required to obtain the approvals
which are outside the control of the Registrant, (iii) objections by third
parties to the Plan, including uncertainties regarding the outcome of the
Petition, and possible other litigation, which could significantly delay or
ultimately prevent the receipt of the approvals, and (iv) failure of Athens to
close for any reason. There can be no assurance that the approvals will be
obtained or that the sale will be consummated. If the sale to Athens is not
consummated and the Registrant determines to sell the Property to another buyer,
there can be no assurance that such sale will be consummated.
<PAGE>
Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Partnership has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.
MLH INCOME REALTY PARTNERSHIP VI
By: MLH Property Managers Inc.
Managing General Partner
By: /s/ Jack A. Cuneo
Jack A. Cuneo
Chairman, Chief Executive Officer,
President and Chief Operating Officer
Dated: July 21, 1998
