Fallbrook couple in process of trying to buy Fallbrook Golf Club

A Fallbrook couple is trying to come to the rescue of Gird Valley residents.

Gird Valley, Inc., owned and operated by longtime Fallbrook residents Jade and Julie Work, is in the process of trying to buy Fallbrook Golf Club from Jack Lamberson. Escrow is expected to close by the end of the month, according to a press release issued by SaveFallbrookGolfCourse.com on behalf of the Works.

Lamberson was served with a notice of default on Sept. 1 from Chicago Title Company, the trustee for Ronald Richards’ D-Day Capital, LLC. Richards, a Beverly Hills attorney who often works with developers, owns the notes on the 116-acre Gird Valley property and started the foreclosure process with the notice of default.

The press release states Gird Valley, Inc. “will pay off the debt and the arrears during the escrow process, thus removing D-Day Capital as lien holder.”

“When we saw it was headed for imminent development, we decided to buy it,” said Jade Work, owner and operator of the golf course construction company Integrity Golf.

Richards, who has a lis pendens (notice there is a pending action filed in court affecting the property) on the Fallbrook Golf Course land, sent the following email to the Village News after being informed that a sale of Fallbrook Golf Club was in escrow:

“We have no knowledge of that. Title cannot be transferred with a lis pendens clouding title. We are proceeding with our actions both non judicially and judicially. Jack and his defunct company will not be receiving any proceeds from the escrow. We will lock them up pending trial so he won’t be utilizing them if that is his pipe dream. If he wants to impound any surplus funds pending the resolution of our lawsuit, we would consider discussing that option.

“Jack is D-Day’s number one target defendant and all of our corporate resources are directed to recouping the large amount of damages he has inflicted on the asset, as well as the growing arrearages, and our six figure legal fees. We are also seeking any creditors of his that he has not paid to assist them in collecting any unpaid claims. Finally, the fact that it is in escrow does not mean it will close escrow. Jack has a history of making deals then breaking them and we have little confidence he can close this one. We look forward to responding to named buyers instead of classified ones.”

According to a seasoned real estate developer, what Richards is saying in his email is that the Works will have to deal with him in order to complete any deal for Fallbrook Golf Club.

The Works, provided they are able to complete the deal, haven’t committed to using the property as a golf course. However, they have vowed to place conservation easements on the land. Conservation easements enable land owners to protect a portion of their land with conservation value without giving up title to the land, or going through a costly lot-split process.

“We are reviewing several options for the property,” said Jade. “Whatever use we commit to, it will be in keeping with the rural character of Gird Valley and will enhance the neighborhood. We will hold a meeting to share our plans with the community soon and look forward to their insight. Our main intention is to preserve the property from development. While this is clearly the most profitable use of the land, it is important to us to keep this land open for others to enjoy as we have growing up here. The land will be placed in a conservation easement.”

Leaders of SaveFallbrookGolfCourse.com are thrilled that the Works – Fallbrook High School graduates who have been married for more than 26 years and have three sons – are stepping to the plate to try to “save” Gird Valley from development.

“The family will save this property forever,” said Teresa Platt, one of the Gird Valley residents that spearheaded the establishment of SaveFallbrookGolfCourse.com last January. “The conservation easement is a wonderful gift. It’s extraordinary.”

Integrity Golf’s website boasts of completing “multi-million dollar landscaping packages.” Platt is excited to see what the Works will do with the golf course property.

“These are great buyers, and it’s a great future for the property,” said Platt. “He’s looking at a lot of different options. We know the property will be beautiful because he does a great job.”

Joan McConnell, another key director of SaveFallbrookGolfCourse.com, is also hopeful the Works can take over the property.

“Beyond appreciating the intrinsic beauty of the location and saving it from development, Jade and Julie have the skills, knowledge and experience to create something really stunning here in Gird Valley,” said McConnell. “We are here to help them succeed in that endeavor.”

 

36 Responses to "Fallbrook couple in process of trying to buy Fallbrook Golf Club"

  1. Dusty   September 22, 2016 at 10:47 am

    With escrow in progress, it’s strange that Ron (and D-Day) would be have any claim, or concern, about the condition of the property. The buyer intends to pay off the existing loan, which should make the holder of the loan quite happy (they then get back the loaned money).

    Of course, D-Day was never really interested in merely collecting the interest on the loan. It was about wanting Jack to default, so that it could repossess and resell the land to a developer (and harvest the lucrative financial rewards that scenario would bring).

    Jack, while I haven’t agreed with many of the things you’ve done, hopefully you won’t give in to sinking this deal due to the threat of “actions, both non judicially and judicially” coming from D-Day. I know that the locals will do all they can to support Jade Work, and to not allow “six figure legal fees” to be used for intimidation and strong armed tactics.

    Reply
  2. SaveFallbrookGolfCourse.com   September 22, 2016 at 11:25 am

    For more on this issue, see SaveFallbrookGolfCourse.com Thank you!

    Reply
  3. Willow   September 22, 2016 at 12:42 pm

    Huzzahs to the new buyers! May the rest of their escrow take place peacefully. It sounds as if all the snakes are not just in those holes on the course. D-Day and its attendant nest of vipers sound as if they are ready to rumble. Let’s hope that Jack and our welcome new buyers can stand tall in the face of whatever shenanigans Mr. Richards, et al, might have in mind.

    Mr. and Mrs. Work, whatever course of action you pursue in building out the course will be a welcome change from the Damaclean sword of unregulated development that D-Day would bring to the Gird Valley. You have our full and complete support.

    Reply
  4. FallbrookDweller   September 22, 2016 at 1:52 pm

    A couple things don’t add up here. If the property is truly in escrow, how can the note holder not know about it? Weren’t they contacted by escrow to find out the current amount owed? Also, why would the noteholder continue a legal claim for damages once they get paid off? Once their interest in said property is removed in full, they would have no legal claim to damages. This is all about money. D-day capital wants to make money off this deal one way or the other. Either they get the property in foreclosure for pennies on the dollar or they manage to extort money from the current buyers by muddying the waters and making the sale difficult.

    Reply
  5. JD   September 22, 2016 at 2:30 pm

    This constant elation, followed by disappointment, then elation…over and over again, has worn me down. I hold zero hope that this new buyer can fight and win against what appears to be a very savvy, shrewd, and even ruthless investment capitalist group, that being the D’Day team.
    I withhold my impolite opinion and scathe descriptions of what I think of them, as my post would be banned. However, I feel this is a battle we cannot win. They don’t want a pay-off. They want ownership so they can sell the back nine to mitigation, and fight the zoning of the front nine to allow development. It’s quite clear in their tone when reading their response. I wish the Works had stepped up months ago, because I think it’s too late. I hope I’m wrong.

    Reply
  6. MCM   September 22, 2016 at 6:14 pm

    I have many questions in regards to how Ron Richards of D-Day Capital was able to purchase the note for Fallbrook Golf Course. It has been said that there were several interested parties but they could get no response from the bank.
    It sounds like D-Day Capital is trying to scare and strong arm the potential new buyers into backing out of the deal.
    If Ron Richards wants a fight, he will get it from the residents of Fallbrook who want what is best for our community.
    We will not back down.
    We totally support the Works purchasing the property and will do whatever we can to support them.

    Reply
  7. dkl   September 22, 2016 at 6:47 pm

    Why are the Work’s buying the golf course? Do they think it is a feasible golf course moving forward? Are they so generous that they are willing to deed it as open space so it can’t be developed?

    Reply
  8. Gird Observer   September 22, 2016 at 7:55 pm

    There is a lis pendens on the property. Jack will not see any money from this deal. That this the good news. He has done nothing but let the People of this community down. He also breached a promise to D-Day apparently which is why he is being sued. I hope these buyers are prepared to spend $3,000,000 to pay off D-Day, attorneys, fees, and withhold the proceeds. It seems like they are in for a big fight. D-Day litigates cases all of the state and Richards seems to loathe delegation and handles these Note deals himself. I think Jack and company have their hands full.

    Reply
    • Dusty   September 23, 2016 at 10:34 am

      The cases that D-Day is bringing mostly surround “loss of value for the property due to neglect”. This would only be important if the bank (D-Day) were to seize the property…which they should not need to do, with a buyer well into the escrow process.

      Ideally, the lawsuits would be dropped, upon the completion of a sale, since it no longer relevant what the asset is worth to the company that formerly held the loan.

      There is a new article posted on the UT website that further explain’s Jade Work’s vision. A wedding venue, winery/vineyard, open space, some combination of these things is being considered. Something more balanced for our community that recognizes that, while golf courses are not financially sustainable, that we don’t need to fill that space with high-density housing from out of town financial opportunists.

      In a perfect world, Jade would close this deal, Ron would back off the lawsuits related to the value of the property, since they are no longer relevant, and Jack would receive what he is owed and be allowed to move on.

      Reply
  9. Riley   September 22, 2016 at 8:00 pm

    I guess people don’t understand why we have a local planning group. They really are here for a reason and they control Fallbrook. My company has applied for several local variances and have been denied each time. Any zoning changes to this property would have to go through them and they would have absolutely no reason to approve such a change.
    The last time this question came up at the local planning meeting it was just for information only and the room was so full people were standing outside. If this matter were to actually reach them for real consideration they will need the largest venue Fallbrook has to available.

    Reply
    • Dusty   September 23, 2016 at 10:42 am

      Riley,

      While the local planning group is one avenue, to keep this property from being pushed towards development when there’s a buyer with a better plan for our community, I would prefer it not get to that stage.

      If the new owner is someone with a history of housing development, living far outside of our area, then local pride and the overall benefit to Gird Valley tends to be unimportant or even completely ignored. It’s sell the lucrative development rights and move on to the next opportunity.

      On the other hand, having a new owner with a long history here, and is living here, will more likely result in a long range plan that isn’t about pocketing as much money as quickly as possible, regardless of the impact on the community. I think Jade Work is that person.

      Reply
  10. Homer Gomer   September 22, 2016 at 10:00 pm

    Too much blue kool aid for the save fallbrook folks….and the beat writer…

    Reply
  11. Harold C Vaubel   September 23, 2016 at 7:56 am

    HGM Golf Enterpises, LLC will be traveling back to Fallbrook, CA. to finalize the sheriff’s report reported on July 19, 2016. Assault was report to the sheriff’s Department the morning of July 19, 2016. In fact all Assets were removed stolen frpm Golf Maintenance. A separate Sheriff’s report is on file on that issue also.

    Good Luck Fallbrook, the Golf Club will never come back.

    Reply
    • Riley   September 24, 2016 at 5:01 pm

      Mr. Vaubel, talk about losing touch with reality. Could never quite figure out what kind of scam you were trying to pull. I think several people finely did figure it out and you were smart to leave. Arizona is a much better place for you, please don’t ever come back to Fallbrook.

      Reply
    • Dusty   September 24, 2016 at 8:29 pm

      Hey Harold,

      First off, yes, I think we’ve come to terms that we’ve lost the golf course. You are to be commended for your efforts, but ultimately the deal fell apart.

      In terms of your returning to complete your sheriff’s report, I am hoping your issues with Jack, and lost assets, don’t allow you to somehow turn this into another hurdle in getting this deal closed. Ron has been quoted above that he is “seeking any creditors of his that he has not paid to assist them in collecting any unpaid claims”. He would be delighted to have you join in that group, of course, working to torpedo the current escrow to allow him to take ownership and cover it with lucrative housing.

      Yes,. we’ve certainly lost a golf course. Hopefully, you’re not vindictive enough, in how your deal fell with Jack, to give assistance to D-Days’ attempts to derail the current escrow. While we’re not keeping a golf course, Jade Work’s motives, and stated plans, are much more in line with preserving open space plus, at the same time, allowing him a business model that is sustainable. Ron is committing to none of that.

      Reply
      • FallbrookDweller   September 28, 2016 at 4:33 pm

        Why not just give him the phone number for D-Day? I mean your already giving him ideas. Really?!?!

        Reply
  12. Asset - Real Estate   September 23, 2016 at 8:19 am

    Banks do not like foreclosing so they sell notes to firms like DD, usually 75 cents on the dollar. With a default, typically there is a new interest rate the kicks in on the total balance. In addition all legal an other fees are added. DD has an excellent lawsuit against Jack as they will show the Net Operating Income when he bought it and value the asset, and then show the current value as non- operational and include replacement costs to return the course to playable condition. The lis-pendis is tied to the title and a new buyer would assume the liability. DD has to approve the sale and would have had to provide a full detailed loan payoff to escrow.

    Reply
    • Dusty   September 23, 2016 at 10:49 am

      Yes, but we’re not talking about anyone defaulting on a loan. We are talking about a new owner, ready to pay off the loan and take over this “devalued” asset off of D-Days hands, with D-Day still retaining a healthy profit for such a short-term investment.

      Feels like there’s a conflict of interest here with D-Day owning the note…they benefit most if they can get the owner to default on the loan, since they can seize this undervalued asset and then resell it at a sizeable markup (assumedly for housing development). It would seem unethical to leverage lawsuits, focusing on the degraded value of the property, against the current owner when they were not going to be impacted (and were soon to be paid back for the full value of the existing loan).

      Reply
  13. JJ   September 23, 2016 at 12:10 pm

    Go to attorney Ron Richard website. The guy seems like a total
    jerk.

    The guy can’t create a real business so he makes his money off other people’s misery.

    The site says he grew up in Beverly Hills with a privileged life. There is also
    something else about the guy… but I won’t say what it is. Look for yourself

    Let Ricards buy it and then go crazy overtime he tries to build something. Get the
    environmentalist’s involved and get them to block any type of development.

    Get flood control involved and have him put in 120 inch pipe from Reche
    to 76 for flood control issues. That would cost $25 mil

    The he will have a great big nothing….

    Reply
  14. Brad Jordan   September 23, 2016 at 3:18 pm

    I can appreciate that there have been many ups and downs regarding potential sales and then everyone’s hopes get dashed because of crazy Jack or whatever. The bottom line is this is a fight to keep a rural feel to the Gird Valley, which is a treasure. Jackals like D Day Capital need to be run out of town. Roy Richards, you can be sure that all heck will break loose if you try and put houses or condos up. Of course, you are heartless and likely don’t care what other people think of you. Let’s all say a prayer that Jade Work and his wife can make this happen. I am ready to support them anyway I can.

    Reply
  15. FallbrookDweller   September 25, 2016 at 2:08 pm

    Property CAN be transferred with a lis pendens attached to the title. It would just be very foolish to do so. Most financial institutions will not give a loan for a property with a lis pendens attached to the title.

    Reply
    • Dusty   September 25, 2016 at 3:53 pm

      As I mentioned, the “lis pendens” seems primarily focused on issues with the deterioration of the value of the property, which becomes unimportant and immaterial when the note holder is paid back in full.

      When the bank/note holder is also an attorney, it seems inevitable they would litigate in order to push the owner into default (so they may then make a substantial profit reselling to housing development).

      As mentioned before, it feels like a conflict of interest, having the note holder instantiate lawsuits for the express purpose of forcing the owner to default because they’re realized they can fetch a higher amount on the open market.

      Let’s hope an enlightened lender could understand these things.

      Reply
      • JD   September 26, 2016 at 4:51 pm

        I think Dusty is right. The note holder’s collateral is the value of the asset. If the asset was worth, say $3m, but the note is $2.2m, the only thing they can do is foreclose to get ownership. They can’t claim to get $3m to pay off the loan, because that would be Jack’s equity. Right now, the asset is probably only worth the note anyway, and nothing more. But, they don’t want a pay-off, and won’t get a profit if it’s sold to the Works. They want to own it, and then sell it off later. There’s about as much chance of this actually closing escrow to the Works at “the end of this month” as there is Canada joining the Union.

        Reply
        • Dusty   September 27, 2016 at 1:03 pm

          JD,

          The only think I would add is that the note was likely sold to D-Day at a discount (maybe as much as 25%) off the full amount owed by Jack.

          So, with Jade paying back Ron the full loan balance amount, Ron still enjoys a nice profit for carrying this loan for a relatively short amount of time.

          Reply
          • FallbrookDweller   September 28, 2016 at 12:25 am

            It is my understanding that Jack had a contract with the original lender to keep the course open and functioning as a golf course business, with said agreement transferring to the new note holder. Once he closed the course and stopped maintaining it, he broke his agreement. So yes there is a valid lawsuit there. Theoretically the current noteholder could sue for breach of contract & damages done to said property during the time they held the note and the course was closed and deteriorated. Even though it does seems foolish and vindictive to do so if the property is sold and the note paid off.

        • FallbrookDweller   September 28, 2016 at 12:30 am

          I agree. I don’t see this mess getting cleared up any time soon. I’ve had cleaner deals then this take 3-4 months before closing escrow. I believe that in the end all parties will regret the day they got involved with The Fallbrook Golf Club. What a disaster.

          Reply
  16. Dusty   September 28, 2016 at 3:46 pm

    FallbrookDweller, I do believe the typical business loan stipulates you need to keep the business operating and you need to maintain the asset. If you don’t, the note holder can start foreclosure proceedings. Those proceedings typically take 3-6 months.

    This is, of course, to protect the note holder from having the value of the asset deteriorate and therefore make it difficult for them to recover the loan amount. With a buyer in escrow, the note holder (D-Day) would be paid in full and no longer need to take action to preserve their cash outlay.

    In reference to “all parties will regret the day they got involved with The Fallbrook Golf Club”, I believe someone is going to end up on the winning side of this. That would either be our local community, if Jade’s ownership prevails, or if D-Day succeeds then they (he) stands to make a considerable profit reselling the land for housing development.

    Ideally there are rules that forbid the note holder from working to actively disrupt an existing escrow in order to force the owner into foreclosure, in order to acquire an undervalued asset. Taking possession of the property should ideally be a last resort, not a planned business strategy.

    Reply
  17. FallbrookDweller   October 2, 2016 at 2:15 pm

    So here we are first week of October. Did escrow close? Any updates?

    Reply
  18. FaithNoMore   October 2, 2016 at 3:21 pm

    More irrational exuberance from the purveyors of sfgc.com. I knew it was foolhardy for them to advertise that the escrow was expected to close by month’s end. This is a dirty rotten mess, that will not easily be solved. The players are rotten and reek of arrogance and greed. Not conducive to alacrity and cooperation. Jack has dug himself in deep, by neglecting the course and being an all-around disagreeable person. The lien holder has all the right in the world to seek legal remedy to the full extent of the law for damages incurred. And as far as the Works paying the asking price AND settling the lawsuit…..that sounds like more pie in the sky talk and feel-good rhetoric. Any sane business people would walk away from this nightmare, unless they are insanely wealthy and have no vested interest in recouping their money. This place….is sadly, a LOSING PROPOSITION, and has been for 7 years now.

    Reply
  19. Dusty   October 3, 2016 at 10:07 am

    FaithNoMore,

    Irrational exuberance? Perhaps a little.

    Yes, the escrow has yet to close. And, if you’ve been following closely, you know there are primarily two forces at work…the potential new buyer, who wants to purchase the property, and the note holder, who is trying to leverage the legal system to derail the purchase (and foreclose on the property, to then sell for development).

    You are misguided or naive, if you believe the lien holder is looking for compensation for “damages incurred”. A purchase would pay back the lender, in full, therefore the condition of the property would no longer have relevance.

    It’s a ploy, pure and simple, attaching lawsuits to interfere with any new owner to be able to secure financing (as someone pointed out previously). This ensures Jack will need to default and D-Day will have a valuable piece of land to resell to the highest bidder. And you can bet that won’t be for a wedding venue or winery.

    Reply
  20. KG   October 4, 2016 at 8:08 am

    Dusty,

    You are naive, or misinformed if you think Richards is going to merely accept the principle and ignore all the legal fees incurred at this point for defaulting on the loan. He’s an attorney and will play this out to the bitter end.

    Reply
  21. Dusty   October 4, 2016 at 11:20 am

    KG,

    My belief is Richards would like to make as much money as he possibly can.

    As he is both a lawyer, and the loan note holder, he is able to both generate legal fees, for utilizing his own services, as well as ideally block any potential sale (to then seize the asset and resell for a nice profit to developers).

    The problem with this, as I see it, is when a lender purchases a loan, from a bank, because they know that the collateral is worth much more than the actual loan. This now becomes an “investment” opportunity, but only pays substantially if the current owner defaults.

    Now imagine you’re in the position to force the owner to go into foreclosure, by generating your own lawsuits, knowing they’ll be unable to sell the property to any potential new owner, as any bank will very likely not offer to fund a loan with this pending litigation.

    It’s brilliant…I just wish I had thought of it first.

    Reply
  22. FallbrookDweller   October 4, 2016 at 2:22 pm

    If I was a betting man, I would bet that the escrow on the course will not close any time in the near future and all parties will regret pursuing this litigious money pit.

    I thought this portion of gird valley was a designated flood zone. I would think it would be difficult to build anything there.

    Reply
  23. Employee   October 18, 2016 at 10:34 am

    I am a former employee of the golf course and I have labor board hearing with the golf course in November . Nothing will be happing in the next couple months . I am one of 20 individuals who were ripped off. These are the first of many hearings to come. Several employees had purchased things for the bussiess that were never compensated for this. Jack didn’t have workers compensation for the last month they were open. Jack illegally 10-99 some employees to cut the cost of his taxes . He never gave breaks to his employees. I can go on and on but now the labor board with help us deal with it all. If you are a former employee and you are still owed money please go to the labor board and do so.

    Reply
  24. KG   October 22, 2016 at 9:31 pm

    So….rumor has it that there was a deal and they secretly closed escrow. Anyone have any updates on this?? They said the golf course will be converted into a conservation park for all the local residents to enjoy. Or was it just that….A RUMOR?

    I noticed there hasn’t been any updates on the save Fallbrook golf course website in a month. ANYONE HAVE ANY INFO?

    Thanks!

    Reply
  25. SaveFallbrookGolfCourse.com   October 24, 2016 at 1:56 pm

    The Village News is working on a story for this week’s paper so stay tuned! We will also post it on our website and share it in an email blast to those on our mailing list. To sign up, enter your name and email address into the Sign Me Up widget on the home page at SaveFallbrookGolfCourse.com Thanks!

    Reply

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