Midpeninsula struggles for millions more for land deal

District needs $14.5 million by the end of June

By Jeff Kearns

After making a deal--the costliest in its history--to buy part of the old Alma College property last month, the Midpeninsula Regional Open Space District may be in trouble as it tries to round up the $14.5 million it needs to complete the deal and buy the rest of the land.

The district has extended until June 30 its option to buy the rest of the land, giving district officials another few weeks to come up with the money, but chances appear slim that the district will be able to pull it off.

"It looks bleak," says district General Manager Craig Britton.

Britton met with the representatives from the David and Lucile Packard Foundation, but says they told him that helping to pay for the land deal didn't really fit its policy program. "Essentially, what they said is that it's more of a park than open space."

Britton says the district has received a few small private donations, it's only a fraction of what Midpeninsula needs to pull off the expensive purchase. He's also had meetings with the Peninsula Open Space Trust, a private nonprofit organization that bankrolls land acquisitions, but said those meetings didn't look very promising.

The district board approved a complex deal March 10 authorizing $30 million to buy 1,071 acres that may become the Bear Creek Redwoods Regional Preserve.

The first phase, paying $10.5 million to Arlie Land and Cattle for 811 acres of the upper property, has already been completed, but Arlie is eyeing the lower 260 acres for possible luxury homes and an 18-hole golf course.

Midpeninsula could buy that lower acreage for $14.5 million, but if it can't find the money, then Arlie may sell off the land to developers--or back out of the deal altogether if it can't get the development rights from the county.

The district also needs another $5.2 million if it wants to buy out the timber rights from a logging company that already has permission from the state for a limited harvest on the land.

Joining more than a dozen environmental groups and other cities, the Los Gatos Town Council adopted a resolution April 5 endorsing the district's acquisition of the land and the creation of the preserve. Monte Sereno, Saratoga and Cupertino have also made similar endorsements.

In addition to the funding challenges, the district is now facing a legal challenge from Pete Denevi, the golf course developer who was aced out of the deal by the Oregon-based landowner. Denevi says that the district's deal interfered with his plan to develop the property in a golf course and country club.

The district's Board of Directors rejected Denevi's claim April 14, after Midpeninsula's attorney, Susan Schectman, concluded that "There does not appear to be any basis to impose liability upon the district for this claim."

Now, Denevi may choose to file suit against the district within the next six months.

In the claim, Denevi charges that Midpeninsula met secretly with Arlie in September and made a deal to buy the land that Denevi was fighting to buy. Denevi's option to buy the land from Arlie expired last year, and when Denevi sued to have his option reinstated, a Superior Court judge ruled that the claim wasn't valid.

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