Encinitas Ranch Golf Course - Response to LSOP

From the in box,

To LSOP:

1.     The Development Agreement was the document that underpinned the incorporation of the Ecke property into the City of Encinitas and allowed the development 900+ homes, the golf course, and the shopping center.  There was a vote on the agreement, but how could the electorate understand it when those involved in drafting it on the city side didn’t.  Councilman James Bond recently said he never really understood it, yet he voted to approve it.  Everyone was thinking of the project itself, not the Development Agreement.  Who was the special counsel?  Did he really protect the interests of the city?  The result was certainly in favor of Carltas/Ecke.

2.     The ERGA board consists of the City Manager, Director of Engineering, Director of Parks and Recreation,  one appointment by the City Manager, and one appointment  by Carltas/Ecke.  Does anyone believe that Carltas/Ecke wouldn’t appoint a strong advocate of its own interests?  John White and Chris Calkins of Carltas have been present at many ERGA board meeting.  Were they only casual observers?

3.     There is more than one CFD bond with Mello-Roos assessments.  CFD #1 was for infrastructure improvement on Leucadia Blvd. and Quail Gardens Dr.  Wouldn't a portion of that apply to the Town Center since Leucadia Blvd. was extended to El Camino Real to benefit the center?   ERGA benefited and pays an assessment.  However ERGA has no involvement with the other CFD bonds .  Of course these other bonds have fixed assessments because there is no complicated excess and surplus net revenue details for paying CFD #1 and the sales tax advance.  What exactly are the obligations of the Town Center under all bonds?

4.     There is a “look back catch up” period of five years for payment of the CDF #1 assessments.  Any debit remaining on the books disappears the sixth year.  If the bad performance of the golf course continues for an extended period, the homeowners may not get any reductions.  With the bleaker economic outlook the big question of a default arises on the Golf Course Revenue Bond.  ERGA has sole responsibility for payment.  It looks as if the real reason for setting up the contingency fund by appropriating the CDF #1 money is to prevent a default in case ERGA income continues dropping and operating expenses rise.  Is this legal under the Development Agreement?

No mention was made of the Joint Power Agreement between SDWD and ERGA.  This is supposed to be mutually beneficial, but SDWD ends up subsidizing the reclaimed water cost and perhaps covering costs in other ways.  Add together the golf patrons, Encinitas Ranch residents, and SDWD ratepayers, it seems that Carltas/Ecke almost got the benefits of a golf course for the Encinitas Ranch project without really paying for it.  Yes, Carltas/Ecke dedicated the golf course land to the city and built the course, but expected to get reimbursed through the complicated Development Agreement over the its lifetime.  This private/public enterprise got derailed by the Great Recession, and Carltas/Ecke looks to be protecting its position vis a vis the citizens of Encinitas.  How does diverting CFD  money for a contingency fund and  a five-year suspension of payment of the sales tax advance, in reality a loan from the city, benefit anyone but Carltas/Ecke?

Cowboy Carlos

In more exciting news, there is no sign that ERGA is considering a global warming policy for the golf course. One enviro-golfer had been hoping the course would ban players who arrived via motorized vehicles, including buses, and the course would end the use of motorized golf carts.