Brea residents sue city over records tied to Costco tax-sharing deal

A Brea advocacy group is suing the city and a senior official, alleging they failed to fully disclose public records about a 50-year tax-sharing agreement involving a proposed Costco development, according to Voice of OC.

The agreement would direct about $77 million in generated tax revenue to developer Dwight Manley over its term, compared with about $50 million to Brea and another $7 million for the city’s senior center. The dispute puts access to records about a long-term allocation of local tax revenue at issue.

Brea4All filed the petition Sept. 29 in Orange County Superior Court against Brea and Jason Killebrew, the city’s community development director and assistant city manager, Voice of OC reported. It alleges violations of the California Public Records Act and the state constitution and seeks complete records, litigation costs and attorneys’ fees.

Much of the dispute concerns texts exchanged by Killebrew and Manley. The group alleges that records supplied in response to two requests omitted timestamps and parts of conversations, presented messages out of sequence and reflected an inadequate search for responsive material.

The proposed store and gas station would occupy 200 and 250 S. Kraemer Boulevard in eastern Brea. According to records reviewed by Voice of OC, Manley sent Killebrew a message on May 5, 2025, discussing a property acquisition, a Costco project and housing on a neighboring parcel. Brea4All alleges that city communications centered solely on Manley even though other developers had expressed interest.

The city said it had provided more than 15,000 pages. Liz Pharis, Brea’s public information officer, declined further comment in an email to Voice of OC.

Manley said the process was properly handled and reviewed by attorneys. He also said his investment and Costco’s, totaling more than $100 million, would enable the project. Under the agreement, Brea would begin receiving more than half of the generated sales tax in year 30.

The petition asks the court to order disclosure within 10 days of its ruling. A status conference is scheduled for Dec. 3 at the North Justice Center in Fullerton, according to Voice of OC.