FPUD to transfer Santa Margarita property to Marine Base, Western Rivers Conservancy

The Fallbrook Public Utility District (FPUD) has taken steps to transfer its Santa Margarita River property to Western Rivers Conservancy, which would in turn place the plot into a permanent conservation area.

According to general manager Brian Brady, FPUD held a special meeting on Oct. 13 to concentrate on the sale of the 1,400-acre property. The goal of the sale is to insure that the property will be held in perpetuity as a conservation easement with Camp Pendleton.

The sale of the property involves both Camp Pendleton and the Western Rivers Conservancy, which has an agreement with the marine base, said Brady. Camp Pendleton indicated that it would pay 50 percent of the $10 million market value and would find an additional partner to pay the other half of the fair market value.

"FPUD is selling the property, and Western Rivers is putting up $5.5 million for the property," said Brady. "The marine base will put about $5 million into a permanent conservation easement for the property."

Talks between the various parties have been going on for well over a year, says Brady.

"There is no specific end date, but the process includes a 180-day due diligence period, and then there are other deliverables that may take the process out until the second or third quarter of 2016."

The FPUD board of trustees has also authorized Brady to develop a nine-point program for fencing, signage, trash removal and similar items to transfer a property that has been properly established as a public access. Brady also stated that the parties interested in purchasing the Santa Margarita River property were “absolutely aware” of ongoing issues with property, such as littering, illegal drinking and drug use, and loitering past established public use.

If the property is not sold, FPUD anticipates the economics of the Santa Margarita River conservation use water project would become more challenging, and the property would not be placed in permanent conservation, according to a presentation made by Brady at the Oct. 13 meeting. Because the property would be operated and maintained using water sewer funds, funds set aside by Camp Pendleton for the conservation easement would be reallocated to other projects. In addition, there is no guarantee of ability in the future to structure a similar agreement.

If the sale is made, the property would provide dedicated funds from outside FPUD’s water and sewer funds to operate and maintain the property and trails. In addition, nearly $10 million from the property sale would be used to develop lower cost local water supply, said Brady.

"Once we receive the value for [the property], we will apply proceeds to the cost of the Santa Margarita use project, which is an approximate $40 million construction project," said Brady. "That would provide about a quarter of the water project cost."

However, the sale will not go through until the board is convinced the proposed stewardship agreement sufficiently states that the trail system will be available in perpetuity for the public to access.

"As part of the sale, there has to be a long-term stewardship agreement that will very likely include the Trails Council to continue being active in maintaining the trail," said Brady. "A funding source for the annual maintenance is an essential part of this."