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| Written by Jonathan Partridge / Patterson Irrigator / | |
| Wednesday, 06 February 2008 | |
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“It’s a temporary suspension. That’s the message that’s coming ... from the top.” — Greg May Diablo Grande interim clubhouse facilities manager “These decisions are being made from a distant hemisphere.” — Gary DeSantis Diablo Grande golf course board of governors president Diablo Grande die-hards brave the cold for one more round  A FEW MORE STROKES: Diablo Grande resident Rob Aguilar putts while John Peterman watches. The two club members at Diablo Grande are upset about the course closures but were happy to play one last time Saturday. Photo by Elias Funez/Patterson Irrigator Project officials say they are temporarily closing Diablo Grande’s golf clubhouse and two golf courses for an unknown length of time for financial reasons. Workers say managers want to reopen the courses by March 1, but golf club members have not been guaranteed an opening date, and many have more questions than answers. “These decisions are being made from a distant hemisphere,” said Gary DeSantis, president of the Diablo Grande golf courses’ board of governors. The developing community of Diablo Grande stands several miles southwest of Patterson in Oak Flat Valley amid the Diablo hills. Though there are plans to develop 33,000 acres, the 2,250-acre first phase of the project — the only legally approved portion — could include about 1,300 homes, a winery and a hotel with shopping amenities. So far, only 470 building permits have been approved. The project is the brainchild of Don Panoz, chairman of Elan Pharmaceuticals, who lives in Australia and Georgia. Financial struggles As for much of the Central Valley, the waning real estate market has caused problems for the development, which already was battered with a slew of environmental and water-related lawsuits in its early years. The project now faces a growing number of mechanics’ liens, totaling well more than $300,0000. In addition, Diablo Grande defaulted on a loan of about $900,000 from Oak Valley Community Bank last month.  Jack Pineo chips a shot out of a bunker Saturday on the Legends West course. Photo by Elias Funez/Patterson Irrigator The closure of the golf courses and the clubhouse comes after Diablo Grande’s Ranch course closed in December, reportedly for water supply-related issues. Officials say they are doing everything they can to get the courses open again. “It’s a temporary suspension,” interim clubhouse facilities manager Greg May told members during an open meeting Saturday. “That’s the message that’s coming … from the top.” Though much of the clubhouse staff has been laid off, May said landscapers will continue to oversee the upkeep of the golf courses. “These courses will not go fallow,” he said. Varied reactions Reactions to the closure were mixed, with some people remaining hopeful that the courses will reopen soon, while others were concerned they might not be able to retain their deposits — or memberships. “I truly believe the glass is half full and not half empty,” said member David Owens of Livermore. Owens said he has faith in the management team, including Panoz, and believes the golf course will be up and running soon. He said he loves playing at the Patterson-area courses. “The property is gorgeous,” he said. “You can’t find, in my mind, a greater 18 — or 36 — holes of golf than right here.” On the other hand, many were not so impressed with the course management, with some saying they figure the problems start at the top. “I wouldn’t give Panoz a nickel and trust him,” DeSantis told fellow golfers after the board of governors’ meeting. He said he and many others understood the economic issues facing the project but thought that aspects of the project had been mismanaged. Some members complained that management had made golfing there too inexpensive for nonmembers, decreasing a feeling of exclusivity and the incentive for others to want to join. DeSantis said it might be wise to make one of the courses public and the other private some time in the future. Many Diablo Grande members wondered about whether they would be able to retain their memberships and what would happen to their $25,000 deposits. Some even talked about suing on Saturday, while others considered a wait-and-see approach. Member Henry Marks said he planned to ask for a refund. “My opinion is that they’re out of money to spend on this whole development,” he said. “The only reason they’re going to keep the water going is the feds are going to make them.” Gary Mall, the No. 2 founding member at the course, said he found out about the closure through a series of e-mails last week sent before a formal announcement was made by Diablo Grande officials. “We were blindsided,” he said. “There was absolutely no notice.” Dwain Sanders, vice president of development for Diablo Grande, would say only that officials are working to get the golf courses and clubhouse open again soon. Unknown future Many members said they felt particularly bad for Diablo Grande home-owners, many of whom bought property because of the nearby course. Homeowner Christy Peterman said the closure likely will make it even more challenging to sell her house, which has been on the market since November. Her husband is in Visalia, and the rest of the family is staying in the Diablo Grande house while they attempt to sell it. “We have to sell, and I don’t know how we’re going to do it,” she said. The golf courses were a big draw for her husband, an avid golfer, when their family moved to the developing community a few years ago. She said her family enjoys spending time at the clubhouse, where there often were parties and other events, and it is difficult to see how the employees there are being affected. Still, she did not express any hard feelings. In fact, most residents and golfers were calm Saturday — sipping beverages and joking with friends — even as they mourned their beloved clubhouse. “Nobody’s seemed really rude,” pro shop assistant Christine Terry said. “We thought that today there might be a firestorm.” Terry said she had made backup plans to get another job. Other workers said they wanted to wait a month to see if they could retain their jobs. All that depends on what Diablo Grande officials can drum up within the next few weeks. Lots of changes may need to happen, including the reversal of long-lasting financial trends. “We’re losing far more money than we’re bringing in,” May told members at the open meeting Saturday. Meanwhile, officials say they will continue to honor scheduled tournaments, weddings and banquets. To reach Jonathan Partridge at the Irrigator, call 892-6187 or e-mail him at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it The Patterson Irrigator encourages a free and open exchange of ideas and information. We reserve the right but do not assume any obligation to delete comments that do not meet our publishing standards. Comments
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This entire development was nothing more than one big lie and housing scam. I trusted the developers and other investors. Now Both owners of Legends etc. that being RW Hertel & Sons screwed us all they took the money and are now going to belly up there deal.
I was notified yesterday they are facing over $ 20,000,000.00 in fraudulent legal action and the State of California issued a waring notice on their poor building. I am joining the others in a suit. Shame on your Hertel for your lying cheating scam.