Winning Bidder for Prime Orange County Site Vows to Challenge U.S. Decision to Cancel Deal

Hilco Development Services' winning bid canceled by federal government after losing bidder Hoag Memorial Hospital sued GSA

LAGUNA NIGUEL, Calif., April 2, 2025 /PRNewswire/ -- Hilco Development Services, the winning bidder for a prized 90-acre property in Orange County, today said it will challenge the federal government's decision to terminate the $177-million sale contract after losing bidder Hoag Memorial Hospital Presbyterian protested the award to Hilco.

The General Services Administration, owner of the Chet Holifield Federal Building in Laguna Niguel, last month rescinded its decision to sell the property, known locally as the Ziggurat, to Hilco after a legal challenge from Hoag, the largest health-care provider in Orange County.

"Hilco Development Services is confident that, ultimately, the GSA will be held to its original determination – namely that Hilco is the winning bidder, and that a sale to Hilco is in the public interest,'' said Hilco attorney Todd Theodora. "Hilco remains committed to maintaining a transparent and fair process as they've done throughout the entire auction."

On Oct. 24, 2024, the U.S. General Services Administration selected Hilco as the winning bidder for the decommissioned building and surrounding land after a competitive and highly publicized auction in which Hilco outbid Hoag. After being named as the winning bidder by the GSA, Hilco deposited a $17.7 million down payment.

In February 2025, the GSA opposed Hoag's complaint and provided supporting evidence to the Department of Justice, arguing that: "Preventing GSA from selling the parcel to the highest bidder would force it to accept Hoag's lower bid, conduct a new auction or not sell the property. None of these would serve the public interest.''

On March 10, 2025, the GSA sent Hilco a letter terminating the deal. Ten days later, Hoag dismissed its lawsuit against GSA.

"Rescinding our bid is wholly unjustified,'' Theodora said. "With both Hilco and the GSA opposing Hoag's claims in court, there is no rational basis for the recent decision to terminate Hilco's status as the winning bidder. We are confident Hilco will be reinstated as the winning bidder, which offers the greatest benefit to taxpayers.''

SOURCE Hilco Development Services