WALLED COMPOUND TO REPLACE RANCHO VIEJO GOLF COURSES?

By Juan Montoya
Although the case lists the City of Rancho Viejo and Falcon International Bank as defendants and Golf and Resorts Investments (GRI) as the plaintiff, the battle has been joined by at least 28 member-residents of the golf residential resort who say both the town and the GRI have acted in bad faith and are already prepared to build homes on the golf courses there.
In a case filed May 28 in the 107th District Court, the intervenors say they are seeking temporary and permanent injuctive relief from the court to stop the city and GRI from following their plans to raze a golf course, build single-family residences on it and to build a wall to separate the new development.
One of the principals of GRI is Sergio Arguelles, the maquiladora and industrial park magnate from Matamoros who owns a good chunk of the resort and who wants to build the walled compound on parts of the golf courses.
However, the intervenors say that they are residents/landowners with a financial interest in preserving the characterization of the community as a peaceful resort community with two 18-hole golf courses and/or club members who have been promised and charged for two 18-hole golf courses..."
The suit harks back to 1983 when RanchoViejo, Inc. (RVI), the predecessor to GRI, filed a lawsuit against the city due to the zoning restrictions because RVI wanted to change some of its property to residential lots, although zoned in the "recreational district."
This past February 25, 2013, GRI filed a petition for declaratory judgment against town and its aldermen. Specifically, GRI sought a declaration to "eliminate the uncertainty regarding how to proceed with an application to re-zone a portion of the real property in light of the legal impossibility of holding the required referendum."
The parties reached a settlement of the initial lawsuit on September 26, 1986. The first part of the settlement laid out the terms. The second part  of the settlement gave RVI and its successors the opportunity to submit its proposed zoning changes under strict compliance with State laws.The intervenors claim that the settlement was contingent upon certain conditions being fulfilled, which included:
1) The joinder by Rio Grande Savings and Loan Association, mortgagee of the property in the proposed restrictions.
(2) The final approval by the Town of Rancho Viejo of the zoning change requests of all of the real property, and
(3) The submission of the plat of the real property described in the agreement
The settlement stated that "Rancho Viejo, Inc. and/or its successors and will have the right to apply to the Board of Alderman for re-zoning of that area at some time in the future."
The 28 residents say that although GRI conveniently inserted land "(covered by the land-use restriction)" they say this is not what the settlement stated, and instead states very clearly that: "the real property depicted on Exhibit "A" as Areas 17 and 18 and containing approximately 6.669 acres is neither being re-zoned, platted, nor made subject to the Land Use restriction (Golf Course dedication)."
The settlement, they charge, did not give RVI, or it successors, such as GRI, authority for the right to apply to the Board of Alderman for re-zoning of the area generally known as the Diablo and Angel Golf Courses. Further, they say that RVI descriptively identified five different parcels of real property, and generally identified all five parcels as the Diablo and Angel Golf Courses. RVI emphasized that it wished to restrict those five parcels of land to recreational use, primarily that of golf courses.
RVI is so clear on its intent, they say, that it went so far as to essentially create a restrictive deed, because it states that "[t]his restriction shall run with the land and furthermore shall be binding upon Rancho Viejo, Inc., its successors or assigns."

RVI at the time agreed that "the Land Use Restriction may not be revoked or amended except with the written consent and joinder of the Town of Rancho Viejo, acting through the Board of Alderman or the equivalent thereof, should the form of government change, which consent and joinder will be given only after a referendum within the Town is held, submitting the proposed change to the voters and the same is approved by Two-Thirds (2/3) of the votes cast at said election."
Both RVI and the town gained from settling out of court. RVI was able to rezone some of its properly, and the town secured an ever-binding covenant, which runs with the land, and which guarantees the town and its residents that Angel and Diablo will always remain as golf courses.
There was no mutual mistake in the execution of this settlement, they say. It's a binding contract and both parties are bound to what these documents assert. Further, the intervenors say that as members, they are intended beneficiaries under the law.
In addition, they say that RVI has  misinterpreted what the settlement  actually states. The settlement states that it may only be revoked or amended should the residents of Rancho Viejo wish to do so.
"At this time the residents neither wish to join or give their consent for GRI to re-zone the Diablo and Angel golf courses. Furthermore, when GRI bought RVI in December 2011 membership soared. Old
members have always been promised and have always had access to two golf courses, Angel and Diablo. New members, those who have joined since December 2011, joined under the misrepresentation that two golf courses would be included in membership.
"On or about January 2013, the Angel Golf Course was shut down and members were given fliers and were
sent e-mails mat GRI was aerating and essentially beautifying that course. This was also addressed in the March newsletter. Since that announcement was made, members and residents have witnessed dirt being shifted from one side of Angel and dumped off on the other, the golf course has never looked worse and all of the ponds on this side of Rancho Viejo have been drained, forcing wildlife elsewhere and creating an eyesore for us residents and members.
They claim that both the City and GRI attempted to keep the suit hidden from residents and club members, in an attempt to push it through the court system and rid intervenors of their rights.
During a meeting May 14, the residents confronted the aldermen and city attorney Daniel Rentfro who told them that they hadn't been informed until the city knew what was going to happen in a court hearing June 11. At that hearing, GRI was seeking a declaratory judgement on their plans for rezoning. Since Rentfro's response was just a general denial without defenses, the residents did not believe him when he said that "this lawsuit would not change the zoning currently in place."
"Intervenors believe that (GRI) and (the city) worked out a deal behind closed doors, which would allow (GRI) to rezone Angel and Diablo into a residential compound; thus, destroying the club for members and Rancho Viejo in general...(GRI) has already had the land marked off and has shown plans to numerous residents. This is a done deal in (GRI's) mind."
Te residents requested that the court "make temporary orders for the preservation of the rights of the parties, and further issue orders dismantling construction on the golf courses pending final resolution of the claims. They further request from the court an order prohibiting retaliation against their membership in the club and enjoining the city from agreeing to entry of a declaratory judgement as requested by GRI.
So far, at least two judges have recused themselves from the proceedings.