Hercules is still searching for the bottom of the Rabbit’s hole, as more foggy details of its financial standing befuddle reporters, activists, and city officials. The latest questions involve a series of delinquent rent and utility payments that may be owed to the city.

Two floundered businesses had been in landlord-tenant contracts with the City and its redevelopment agency. Now that both have closed shop, the City is being asked how much they’re owed in back-rent and unpaid utility bills. The answer, while potentially straightforward, appears to be mired in the confusing reign of former city manager Nelson Oliva.

According to one of the parties involved, they had an oral, handshake deal for either a 20 or 25-year loan. Payments were supposed to be capped at $16,000 per month for five years, and followed by a period of $1,000 per month increases in the loan payment until the debt was settled. However, in 2010, the City said that the payments should have been as high as $28,415 per month.

In another situation, a fitness center was subleasing a city-leased property. When the fitness center stopped paying its lease to the landowner, they went after the City for the arrears. That was settled for $700,000.

How much the City should charge or collect remains unseen.

Read the full article at the Mercury News.