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Osuna Ranch Purchase: Cliff Notes and Questions
Author: Lisa Bartlett
Date: May 16, 2014
August 8, 2004: Osuna Ranch sold by Fogerty for $8.75 million to Rancho Osuna LLC
April 25 2005: RSFA Open Space Committee Minutes: 8 months after Rancho Osuna LLC purchased the property, Rancho Osuna LLC determined it was not economically feasible to develop. RSFA member of Open Space Committee, who is real estate expert says: Purchase does not make sense economically and Open Space Committee should stay away from it.
March 31, 2006: Grant Deed from Rancho Osuna LLC to RSFA signed by seller’s representative
April 20, 2006: RSFA Board announced Board has taken action to acquire Osuna for a purchase price $12 million — $5M of which will be bank note. “Board will consider selling the residence and an additional lot which will generate sufficient proceeds to retire the bank note in full.” (RSFA Board Minutes)
April 20, 2006: RSFA Board Members: Marie Addario; Ken Bien; Donna Ferrier; Lynne Heidel; Ken King; Ron McMahon; Bob Spears Manager: Pete Smith
April 21, 2006: “Notice of the Associations Intent to Purchase Land” sent to RSFA members
April 25, 2006: RSFA Finance Committee Minutes: “The Committee expressed disappointment and frustration that the Board has yet to take counsel from the Committee regarding the purchase of the Osuna property with them.”
June 6, 2006: Osuna sold to RSFA for $12 million (MLS)–Over $ 3 million profit for Rancho Osuna LLC in 22 months
September 13, 2006: RSFA Finance Committee Minutes: “….Finance Committee should have been involved in the decision to purchase the Osuna property and the general feeling of the committee members is that there was not enough thought given to the purchase of the Osuna property. The Board should be firm and not approve expenditures if they don’t go through the Finance Committee…The Committee agreed that there is a need for more fiscal responsibility.”
April 2013: RSFA sells house on Osuna and approximately 3 acre lot for $1.75 million
The Osuna Ranch purchase was the largest single financial transaction in RSFA history, leading many residents to ask the following unanswered questions:
1. Why did the RSFA Board negotiate a deal, with the first notice in the RSFA Board minutes coming when they announced they had already taken action to acquire the Osuna?
2. Why didn’t the RSFA Board consult with their Finance Committee concerning the largest single financial transaction in RSFA history?
3. Why wasn’t the RSFA membership consulted?
4. Why didn’t RSFA Board disclose to RSFA membership that seller of Osuna to RSFA had a conflict of interest? (Open Space Committee Minutes–April 25, 2005)
5. Where was the appraisal of the Osuna Ranch, immediately before the RSFA purchased the property? (If there was an appraisal, why wasn’t it made available to the membership and included in the RSFA Board Minutes?)
6. Where was the offer/counteroffer re the purchase of the Osuna Ranch by the RSFA? (If there was an offer/counteroffer, why wasn’t it made available to the membership and included in the RSFA Board Minutes?)
7. Where was the $5 million sale that the RSFA Board believed would pay off the bank loan?
Read the Actual Minutes from RSFA Board, Finance Committee and Open Space Committee in this article.