Also serving the communities of De Luz, Rainbow, Camp Pendleton, Pala and Pauma

FPUD ends all dealings with Western Rivers Conservancy

The Fallbrook Public Utility District (FPUD) board, which June 26 rejected a motion to extend an escrow agreement with Western Rivers Conservancy (WRC) for the purchase of 1,384 acres of land along the Santa Margarita River, held a special board meeting July 14 and voted to end all dealings with WRC.

The FPUD board, in September 2015, approved a sale agreement of the property to WRC for $9,975,000. The purchase and sale agreement set an escrow closing date of December 31, 2016 unless WRC chose to increase the deposit and extend escrow to June 30, 2017.

WRC, which initially put up a $50,000 "good faith" deposit on the property, paid another $50,000 to have the 12-month escrow period extended for another six months to June 30, 2017. When WRC asked for another 90-day extension, the board rejected the request by a 3-2 vote June 26.

At the special meeting July 14, the board unanimously passed a motion that stated FPUD rejects a long-term steward agreement proposed by WRC, formally cancels the purchase and sale agreement with WRC, and authorizes the return of deposit ($100,000) to WRC.

"It was a necessary action to formally terminate all agreements with Western Rivers Conservancy," said FPUD general manager Brian Brady of the action taken at the special meeting. "We had our real estate attorney, Steve Lopardo, there specifically to make sure that escrow instructions and termination actions were done properly."

Lopardo explained to the board that WRC "sort of hedged its position by, at the last minute, submitting a proposed long-term steward agreement." Loparado said the way the contract was written, FPUD needed to formally object to the proposed plan by WRC or it might be deemed accepted.

"As a practical matter this contract is dead, but a from a legal niceties point of view and to protect FPUD, I would certainly recommend you authorize a letter that said FPUD rejects Western Rivers' access plans so there's no misunderstanding that it's not accepted," said Lopardo.

The board took Lopardo's advice.

"Western Rivers was interested in some kind of continuing relationship with the district, and the board, I think, correctly decided that with the termination of the agreement, that any other relationship should be severed as well," said Brady.

When asked why the board voted not to grant the 90-day escrow extension at the June 26 meeting, Brady responded, "The agreement had an 18-month run period to it, and at the end of the 18 months it was the board's consensus decision to end that relationship. The board decided that Western Rivers had not made enough progress."

Brady was also asked if he had any thoughts as to why Western Rivers was unable to close escrow by the two deadlines.

"I guess all you can say is they didn't get the job done," said Brady.

So, what happens with the land now?

"Well, the board of directors is going to have to make that decision," said Brady. "For the moment, we continue to maintain the land because we're the owners. We'll make sure its kept in good condition and we'll await the board's decision."

The property continues to be used by people for recreational activities and that won't change, according to Brady.

"It's been in continuous use as trails for many, many years and we expect that will continue," said Brady.

 

Reader Comments(0)

 
 
Rendered 03/10/2024 10:52