Steve Ringhoff is a former journalist with the Modesto Bee who went into law and retired after a career as a practicing attorney. 

Nature was part of the allure of Diablo Grande from the beginning, when deer could be seen trimming the hillside oaks while standing on their hind legs.

Much less charming were the wild hogs that rooted for grubs at night in the lush fairways of the two golf courses, leaving parts of the greens looking like they had been plowed.

The occasional Roadrunners at the course edges looked exactly like the cartoons, causing every golfer who saw one for the first time to think, or even say out loud: “beep, beep.”

While the birds added a touch of whimsy to the situation, the prediction of the late Vance Kennedy of Modesto, more than two decades ago, is proving to be true: that water issues would lead to the downfall of the grandiose project.

The resort is in the bankruptcy for at least the third time; this current filing is specifically designed to thwart a tax auction of the golf courses, outbuildings and a handful of developed but vacant lots.

The tax obligation of a couple of million is couch change given a $14 million claim for past due payments for water or the $38 million owed on the Mello-Roos bonds, proceeds of which were used to build the resort.

A couple of extensions on the water bill have pushed that deadline into May but there are big hurdles yet to be overcome.

The dream of the original developers was to turn the dusty foothills a dozen miles west of Patterson into a community of thousands of homes, country clubs — including six golf courses — hotels and a conference center. It was cattle country at the time. This grand resort concept leapt over the usual hurdles — including an environmental impact report — and was approved in the late 90s by the Stanislaus County Board of Supervisors.

That plan called for a build-out in six phases. The first two phases would build a clubhouse, outbuildings, and two golf courses along with other infrastructure, including miles of roads to and through the development. There would be clusters of smaller homes and larger, sprawling estates along the roads cut into the hills.

As often happens, environmentalists objected and filed a lawsuit. The late Superior Court Judge David Vanderwall approved the EIR but the Fifth District Court of Appeals did not, finding that the water supply was secured only for first two phases.

Apparently, the shine went off the golf courses as interest in that sport declined, and as people had less disposable income when money tightened. Ultimately, the golf course revenue wasn’t enough to pay for the water needed to keep everything green.

While the perception of many was that there wasn’t enough water, in reality the allotment was for 8,000 acre feet a year and the resort only used about 2,000.

The fairways and greens were kept in good order and had an auspicious start. The Legends course was designed by Jack Nicklaus and Gene Sarazan, whose statue overlooked the practice putting green, clad in the knickers of his heyday.

Most of the course lay on the old Oak Flat Ranch where the dilapidated buildings from the ranch remained, along with a windmill on the third hole.

The resort is contending it does not owe the $14 million to the water purveyor because the deficit came during the tenure of two developers who failed to pay the water bill.

The Western Hills Water District (WHWD) which oversees the resort, also argues that the water allocation is a vested right which it is free to sell, or barter for water from another source.

The water provider disagrees with both contentions. It has also argued that the current individual water bills to homeowners of $600 does not cover the cost of delivering it.

Water from other sources has been hard to find. The federal system for the delta involves more than two dozen entities and each would have to agree to give Diablo Grande an allotment. This is thought to be unlikely.

The City of Patterson provides sewer service and it too is owed money. Without water and sewage systems, the 600 or so homes now housing about 1,000 residents would be uninhabitable.

Mark Kovich, president of WHWD, has been trying to find a way to salvage the resort. He has invited the builders of Tracy Hills and others to build out the resident lots and he has given tours if the golf courses to resort managers’ companies.

It is a chicken-egg situation. You build the homes and maybe you could support the golf courses; with estimates to get them playable again at $1-2 million each. Or you rebuild one or more of the golf courses and thus attract home builders.

The closest city which could annex the development is Patterson. Public agencies in other California counties operate golf courses.

Or, the golf course properties could be turned into parks, sports fields and walking trails where golf carts once roamed.

Or, we could solicit suggestions. What’s yours?

Sources: information for this article came from previously reported pieces; from postings on WHWD’s homepage; from the reported decision of the Fifth District Court of Appeals, and observations of this writer (beep, beep). 

A Special Note: Even Jack Nicklaus got stiffed for part of his fee for designing the Legends course. He was to get his pick of two of the lots but hadn’t made his pick before the first bankruptcy which made that obligation dischargable.