LEADING DEVELOPMENT TEAM EMERGES TO CONSTRUCT RECREATION, HOUSING AT METROPOLITAN’S DIAMOND VALLEY LAKE
Board committees authorize negotiations with Shopoff-led team

A developer team with a history of designing and constructing multi-dimensional recreational projects and master-planned housing communities today emerged as the leading candidate to join the Metropolitan Water District in building recreational facilities at the east end of Diamond Valley Lake.

Two committees of Metropolitan’s Board of Directors will recommend that the board authorize entering into negotiations with a development team led by The Shopoff Group, an Irvine-based real estate investment company, and Centex Corp, a national homebuilder.

The Shopoff/Centex team was evaluated as the top candidate among six proposals to undertake the development and operation of recreational amenities on Metropolitan-owned land in Hemet outside the 4,500-acre drinking water reservoir. Metropolitan sought proposals to develop this area in accordance with the district’s commitment to provide recreational amenities, including campgrounds, a swim lagoon, day use picnic areas, bicycle paths and trails.

“The Metropolitan board’s goal has been to find a private investor that shared our vision for recreation, demonstrated an ability to finance and construct the improvements and had a plan to ensure these facilities were financially self-sustaining,” said Randy A. Record, chairman of the board’s recreation committee, which met jointly Tuesday with the board’s asset and real property committee.

The focus of Metropolitan’s efforts has been to provide recreation within about 860 acres that the district owns south of Domenigoni Parkway and west of State Street. The district, however, also requested proposals that included about 730 acres of residential-zoned land just north of this site for board consideration.

Metropolitan received six proposals, which were evaluated in a competitive process that examined the proposed approach to development and operation of the recreation facilities; merits of the development plans and concepts; inclusion of water conservation measures; and the demonstrated financial ability to build and maintain the facilities.

As part of the recommendation before the board committees, Metropolitan has identified two other development teams that were highly rated candidates should negotiations with the top candidate not prove successful.

The committees’ recommendation to enter into negotiations with the Shopoff/Centex team will be forwarded to the Metropolitan’s full board for consideration in November.

David Farrar, chairman of the Metropolitan board’s asset and real property committee, said that an appropriate timetable for development would be prepared as negotiations proceeded.

“Metropolitan will continue to work with the city of Hemet, Riverside County and community interests to keep them informed of progress and to solicit their ideas. Our goal is their goal—to provide recreation that meets community expectations in a fiscally responsible way,” Farrar said.

The $2 billion Diamond Valley Lake project provides Southern California with an invaluable storage reservoir that serves as an emergency source of supply in the event of a natural disaster. The reservoir also is a world-class fishery for trout, bass, catfish and other stock.

Metropolitan’s board has committed nearly $90 million in recreation-related improvements to the complex, including roads, infrastructure, basic grading, a marina and hiking/equestrian trails. The complex also will be home to a museum complex for water education, archaeology and paleontology, as well as a regional sports recreation facility being developed by Valley Wide Parks and Recreation District.