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FOR IMMEDIATE RELEASE

Press Release Date: April 23, 2015
Contact:  Tiffany Cribbs, Communications Specialist
Phone: 951-244-6841, ext. 217
Email:

Subject: Canyon Lake Property Owners Association Gives Update On Lake Lease

Canyon Lake, CA – On April 7,2015 the Association’s Board of Directors voted unanimously to make the lease payment as an act of good faith. EVMWD had indicated they would agree to meet in a mediation setting with the Board Members if the Association makes the lake lease payment.  The payment was made and sent to EVMWD.  Unfortunately, EVMWD has now indicated that it does not want to meet with the Association. 

For the past year the Association’s Board has been reviewing the terms of the lake lease. The Board has tried multiple times to set up meetings with EVMWD to discuss a new lake lease.  Several meetings have been agreed to but then cancelled by EVMWD.  Last year, despite attempts, EVMWD would not meet with the Association’s Board of Directors or even a committee of the Board of Directors.  The current lease expires on December 31, 2022. EVMWD’s only communication was a proposal to extend the current lease for an additional 44 years, taking the term to December 31, 2066.  The extension included an Indemnity provision that was overly broad and something that the Association could not agree to.  It was non-negotiable according to EVMWD.  Given an 8% compounded increase per year, the total amount spent on the lease over the 50 years would be over $833,000,000.  Even at an increase of 5%, the total cost to the members of Canyon Lake would exceed $300,000,000 over the 50 years of the lease. Under the current rate and scheduled increases, the cost per year will exceed $3,000,000 in less than 10 years and over $6,700,000 in less than 20 years. 

Additionally, in 2010, the voters of the State of California passed Proposition 26 (Proposition 26 amended the California Constitution to add Article 13C), which made the charges imposed by EVMWD an illegal tax. On February 18, 2015 the Association notified EVMWD that it was making a claim for the return of $6,231,134 plus interest at the legal rate, this is the amount overpaid from the imposed tax charge. It was for this reason that the lake lease payment was withheld.  Following this action, on March 20, 2015 the Association filed a Declaratory Relief lawsuit in the Riverside Superior Court.  This lawsuit asks the Court to declare the rights and responsibilities of the parties at the end of the lease.

Board President, David Eilers says “We welcome and encourage a meeting with EVMWD to negotiate a fair lease payment/charge. We are ready, willing and able to sit down to discuss that with EVMWD’s Board.  Despite the filing of the claim and lawsuit, Canyon Lake would be happy to talk and work this out. However, if EVMWD intends to dictate terms though, such a negotiation will not be successful.”

About Canyon Lake Property Owners Association
The Canyon Lake Property Owners Association (the Association), incorporated in 1968, as a California nonprofit corporation, is responsible for the operation and maintenance of the common areas within Canyon Lake. The purpose of the Association is to promote the recreation, benefit and enjoyment of the homeowners within the community. The Association’s mission is to support the Canyon Lake community with exceptional services and solutions, which make this a premier place in which to live and work. For more information about the Association, visit www.canyonlakepoa.com or call 951-244-6841.

 

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MEDIA INQUIRIES

  • Communications 
    Tiffany Cribbs
    Communications Specialist
    951-244-6841, ext. 217

  • Harmony Owen

    Public Information Officer &
    Clerk of the Board
    951-244-6841, ext. 212

PROJECT INQUIRIES

  • Canyon Lake Property Owners Association's Corporate Office
  • 951-244-6841, ext. 210
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