Property description 04-04-08 - California Valley...
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1 Subject to Change Diablo Grande Fact Summary Diablo Grande is a 28,500 acre resort and master-planned mixed use community (“Project”, “Property”, www.diablogrande.com ) located in the foothills on the western edge of California’s Central Valley, approximately 30 miles southwest of Modesto. Upon the build-out, the Project is envisioned to include a mix of uses including detached and attached residential properties, commercial and resort facilities, golf courses, and open and recreational space. Development of Phase One of the Diablo Grande Project, which includes approximately 5,000 gross acres, is under way. Over $120 mln have already been invested in the acquisition of the Project, infrastructure and land development. The Project currently features two functioning golf courses, a club house, a swimming pool, a tennis court, planted vineyards, and a winery. Approximately 841 residential lots have been sold and 460 building permits issued for these lots, with estimated 350 homes occupied. The entire Project is estimated to include approximately 5,000 residential units upon full build-out. - Ownership - Fee simple rights in the Diablo Grande Project are owned by Diablo Grande Limited Partnership (“Developer”). - Property Size – Diablo Grande Project consists of approximately 28,500. - Address and Location – The Property address is: 9521 Morton Davis Drive, Patterson, California 95363. The Property is located about eight miles west of the town of Patterson, California, in western Stanislaus County. The Property spans several valleys in the rolling hills forming a portion of the western edge of California’s Central Valley. - Climate - Due to its elevation, Diablo Grande features a mild climate permitting outdoor activities year-round and excellent golf conditions. - Access - Stanislaus County is traversed by two major highways, Interstate 5 on the west side and State Highway 99 through its central region. Direct access to the Property from Interstate 5 is available on Diablo Grande Parkway, a modern two-lane road constructed by the Developer. - Development Status – The Project is envisioned to be developed in four phases with development of Phase One currently under way. The majority of major infrastructure works, including roadways and utilities, necessary for Phase One of the Project have been completed. Phase One is projected to
Transcript of Property description 04-04-08 - California Valley...
1 Subject to Change
Diablo Grande Fact Summary
Diablo Grande is a 28,500 acre resort and master-planned mixed use community (“Project”, “Property”, www.diablogrande.com ) located in the foothills on the western edge of California’s Central Valley, approximately 30 miles southwest of Modesto. Upon the build-out, the Project is envisioned to include a mix of uses including detached and attached residential properties, commercial and resort facilities, golf courses, and open and recreational space. Development of Phase One of the Diablo Grande Project, which includes approximately 5,000 gross acres, is under way. Over $120 mln have already been invested in the acquisition of the Project, infrastructure and land development. The Project currently features two functioning golf courses, a club house, a swimming pool, a tennis court, planted vineyards, and a winery. Approximately 841 residential lots have been sold and 460 building permits issued for these lots, with estimated 350 homes occupied. The entire Project is estimated to include approximately 5,000 residential units upon full build-out.
- Ownership - Fee simple rights in the Diablo Grande Project are owned by Diablo Grande Limited Partnership (“Developer”).
- Property Size – Diablo Grande Project consists of approximately 28,500.
- Address and Location –
The Property address is: 9521 Morton Davis Drive, Patterson, California 95363.
The Property is located about eight miles west of the town of Patterson, California, in western Stanislaus County. The Property spans several valleys in the rolling hills forming a portion of the western edge of California’s Central Valley.
- Climate - Due to its elevation, Diablo Grande features a mild climate permitting outdoor activities year-round and excellent golf conditions.
- Access - Stanislaus County is traversed by two major highways, Interstate 5 on the west side and State Highway 99 through its central region. Direct access to the Property from Interstate 5 is available on Diablo Grande Parkway, a modern two-lane road constructed by the Developer.
- Development Status – The Project is envisioned to be developed in four phases with development of Phase One currently under way. The majority of major infrastructure works, including roadways and utilities, necessary for Phase One of the Project have been completed. Phase One is projected to
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include 2,379 single-family homes and feature two 18-hole golf courses, a club house, vineyards (the latter three are existing), a swim and tennis center, equestrian center, picnic areas, children’s playground, town center with conference facilities, shopping center, a hotel, a spa, as well as miles of hiking, walking, cycling, and equestrian trails. The table below summarizes the land uses and status for Phase One components.
- Phase One
Diablo Grande- Phase I, Units 1 through 5Total Sold Available
Component Description Acres Lots/ Units
Acres Lots/ Units
Acres Lots/ Units
Open Space & Recreation Hillside Area 498 498 Open Space & Recreation Creek Side Areas 297 297 Open Space & Recreation Parks 49 49 Open Space & Recreation Golf Courses 255 255 Open Space & Recreation Vineyards 44 44 Open Space & Recreation Ponds 22 22
Employment Hotel Conference Center Town Cntr 14 14 Employment Shopping Center 7 7 Employment Winery 3 3 Employment Golf Club 12 12 Employment Tennis Club 3 3
SFR R-5 SFR 44 274 44 274 - - SFR R-8 SFR 36 172 36 172 SFR R-10 SFR 345 745 108 261 237 484 SFR R-20 SFR 80 154 39 71 41 83 SFR R-40 SFR 98 101 18 7 80 94 SFR Estate (3 ac. Minimum) 128 39 128 39 SFR Patio Home Lots (4,500 sf) 13 98 13 98 - - SFR Cottages (Condos) 74 796 15 130 59 666
Public Facilities Water Treatment 18 18 Public Facilities Maintenance Center 4 4 Public Facilities Roads - Parkway 40 40 Public Facilities Roads - Other 147 147
Total 2,231 2,379 237 841 1,994 1,538
Included in the unsold lot inventory are 50 finished lots (average size of ¾ of an acre) and 147 tentatively-mapped unimproved production lots.
Entitlements for the rest of Phase One are in place, subject to obtaining tentative map approval.
Golf – the Property currently features two functioning golf courses and a clubhouse
Legends Course – a private 18-hole, 72 par 6,900-yard private world-class championship course co-designed by Jack Nicklaus and Gene Sarazen.
Ranches Course – a public 18-hole, 72 par 7,200-yard golf course designed by Denis Griffiths.
Clubhouse – an elegantly appointed 20,000 sf facility that currently serves both golf courses. The clubhouse accommodates locker rooms, men’s and ladies’ lounges, a pro shop, meeting rooms, a restaurant, a bar, and the Diablo
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Grande wine tasting room. There is a driving range adjacent to the club house.
Vineyards and Winery – Approximately 36 acres of vineyards are currently planted, and 20 additional acres have been allocated for vineyards, in Phase One. A 640-acre parcel (the “Isom Ranch” parcel) located on the Property approximately 8 miles from Oak Flat Village, the site of the existing Phase One improvements, contains approximately 14 acres of planted vineyards and the Isom Ranch Winery. Diablo Grande is a separate appellation and has been established as an American Viticultural Area. Since 1997, Diablo Grande Wines have been produced and bottled by Isom Ranch Winery & Vineyards, Inc. under a lease with the Developer. The Diablo Grande wines have won numerous medals and awards at commercial wine competitions.
- Future Phases – The existing Master Plan provides for construction of approximately 2,621 residential units in Phases Two through Four, including 180 equestrian three to ten acre properties with up to fifty condos, 160 acres of common area used for competition grounds, club house and stables, 500-unit age-restricted community. No entitlements for these phases presently exist.
- Marshall Davis Parcel – The Developer also owns an approximately 153 acre agricultural parcel south of the City of Patterson and east of Interstate 5. The parcel is presently subject to an agricultural lease with a local farmer.
- Utilities
Water Supply - Western Hills Water District (“Water District”) was established in 1992 for the purpose of facilitating development of the property and providing water to the proposed development. The Water District has purchased a long-term supply of water, 8,000 acre-feet per year, from the Kern County Water Agency. This amount is believed to be adequate for the needs of Phase One. The water is being pumped to Diablo Grande from a turnout in the California Aqueduct through existing pipelines and pump stations and treated at an on-site treatment plant. The existing water treatment facility is estimated to be sufficient to serve Phases One.
Sewage – Sewage and wastewater treatment is provided by the City of Patterson facilities. The sewer capacity is believed to be adequate for the needs of Phase One.
Electricity – Diablo Grande draws electricity from Turlock Irrigation District.
Power Distribution and Telecommunications – Modern underground conduits have been installed along the Diablo Grande Parkway and Oak Flat Road to provide power and telecommunications connectivity for the Project.
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- Community Facilities District and Mello-Roos Bonds
Within the Water District, Diablo Grande Community Facilities District No. 1 (“CFD”) was formed to provide infrastructure improvements for Phase One of the Diablo Grande Project. CFD currently comprises approximately 2,250 acres.
CFD was authorized to incur bonded indebtedness in an aggregate principal amount not to exceed $57 mln. The District has issued the entire $57 mln amount of bonds in four issuances which occurred in 2001, 2002, 2004, and 2005 pursuant to the Mello-Roos Community Facilities Act. The bonds are repaid from the levy of special taxes which are annually assessed by the Water District on taxable real property within the District. Taxable property in the District is security for the special tax and the special tax is security for the bonds.
As of December 31, 2007, the total outstanding balance on the bonds was $53.69 mln. Annual debt service is approximately $4.4 mln. Presently, the Developer’s portion of the annual amount of the special tax is approximately $3.0 mln.
- Additional Information
Bank of Scotland loan – approximately $20.6 mln, secured by Diablo Grande Project land.
Oak Valley Community Bank loan – approximately $900,000, secured by Phase One, Unit 1A, Lots 7-11. This loan is junior to the Bank of Scotland loan.
Isom Ranch line of credit - $1.2 mln line of credit secured by the Isom Ranch parcel.
Pursuant to an agreement between Diablo Grande LP and the Water District, Diablo Grande has an obligation to provide funding in the event of operational shortfalls of the Water District.
Contacts:
For further information, please contact:
FTI Consulting Inc.
Rocky Ho – tel: 415-283-4233, email: [email protected]
Larissa Gotguelf – tel: 213-452-6046, email: [email protected]
Sheppard Mullin Richter & Hampton LLP
Joan Story – tel: 415-774-3211, email: [email protected]
Ori Katz - tel: 415-774-3238, email: [email protected]
Phase I - Oak Flat Village
