Economic Downturn ‘Saves’ Casta Golf Course

The Casta del Sol Golf Course is still for sale. The status is the same as it was in 2007 when Sunrise proposed an assisted-living complex where the clubhouse now stands.

Rezoning the property to residential requires the approval of only three council members. Is it true that Sunrise thought it had three votes lined up? Throughout the yearlong, relentless effort to build, the developer ignored outcry of the neighbors, petition circulators and every other obstacle posed by residents who wanted to preserve the golf course.

Then, in early August 2008, Sunrise abruptly withdrew its proposal. Those observing the process suspected it was temporary, but the developer didn’t return.

Following is a paragraph from the 1-24-08 issue of this blog:

“A Mission Viejo resident who lives near the Casta del Sol Golf Course forwarded a Nov. 10 [2008] article from CFO.com, ‘Default Clouds Hover over Sunrise Senior Living.’ Here’s the link: http://www.cfo.com/article.cfm/12585301/c_12583719?f=home_todayinfinance
According to Stephen Taub of CFO.com, Sunrise Senior Living Inc. ‘reported a $68.7-million third-quarter loss, versus a $38.2-million profit a year ago.’ The article states, ‘Sunrise Senior Living Inc. warned that it does not expect to be able to satisfy some financial covenants under its amended bank credit facility by year-end. As a result, on Jan. 1 it may no longer be able to borrow unless it receives an additional wavier from lenders.’’

Related articles on CFO.com about Sunrise in 2008: “Sunrise Fires Three More Top Executives,” “Sunrise Tripped Up by Real Estate Errors,” “Ex-CFO Says He Won’t Be the ‘Fall Guy,’” and “SEC Launches Formal Sunrise Probe.”

With the housing market still in the tank and a council election 45 days away, the golf course has officially been declared safe from homebuilding.

The Sept. 7 Mission Viejo Dispatch reports about Councilwoman Trish Kelley’s ballot statement, “Kelley is said to falsely take credit where it isn’t due. Observers cite the Casta Golf Course, where she claims to have stopped a developer, but the Council’s temporary actions expired, leaving the Course now open to the same potential high-density housing threats posed in 2007.”

Any temporary reprieve for the golf course should be credited to the housing slump and worldwide economic downturn.