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

Letter of credit replaces lien contract for The Groves of San Luis Rey Downs

A lien contract for The Groves of San Luis Rey Downs has been replaced by a letter of credit as the source of security to ensure that the necessary public facilities are constructed for the Bonsall subdivision.

A5-0 San Diego County Board of Supervisors vote March 21 approved the amendment to the Joint Agreement to Improve Subdivision and also approved the release of the joint lien contract and the termination of the joint holding agreement. The supervisors also granted a time extension for the performance completion date, extending the deadline to January 29, 2009.

The project at the southwesterly corner of Olive Hill Road and Mission Road consists of 293 acres, and the current subdivision map would construct 89 single-family homes. The initial tentative map for the subdivision was approved in May 1971 and the initial final map was approved by the Board of Supervisors in May 1973, although various replacement maps have since been approved and the property has changed ownership several times. The current ownership is the Jacob and Jeanette Brouwer trust and ADJ Holdings, LLC.

Changes in circumstances have prevented development, and the project has been secured by a lien contract since 1987. The current ownership has requested approval for a replacement project, and the replacement map is nearing final approval. The lien contract security prohibits the ownership from completing some of the conditions of the replacement map, and traditional security has been provided to replace the lien contract. The replacement map would have expired on April 5 had the time extension not been granted.

A letter of credit for $8,887,000 in favor of the county and the Rainbow Municipal Water District has been placed with the Clerk of the Board of Supervisors to replace the lien contract. That letter of credit guarantees construction and covers both $5,925,200 of faithful performance improvements and $2,962,600 to ensure labor and material payments. The faithful performance amount includes $3,866,700 for improvement of streets and drainage facilities, $2,033,500 for improvement of water facilities, and $25,000 for setting of final monuments.

 

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