GILROY
– Due to popular demand, the popular vote of Eagle Ridge
homeowners will determine whether Bonfante Gardens can complete a
mega real estate deal with the ritzy community’s developer, Shapell
Industries.
GILROY – Due to popular demand, the popular vote of Eagle Ridge homeowners will determine whether Bonfante Gardens can complete a mega real estate deal with the ritzy community’s developer, Shapell Industries.
Chris Truebridge, the executive vice president of Shapell, announced late last week his company has reached an agreement with Eagle Ridge homeowners. Instead of letting a handful of delegates decide whether Shapell could buy a 33-acre Bonfante Gardens parcel, homeowners will cast ballots to OK or nix the deal.
And, Shapell will cover the cost of mailing ballots to Eagle Ridge’s some 500-plus homeowners.
“We’re trying to be up front with members of the homeowners association,” Truebridge said. “The only way this deal goes through is if its a three-way win. Bonfante Gardens needs additional revenue, the homeowners want amenities and Shapell wants to give enough without giving away bank. We need to make a reasonable profit.”
Technically, a May 29 vote by the delegates will determine whether the land deal goes through. However, Truebridge has gotten all of the delegates to agree to vote the way of the popular vote in their districts.
Shapell will mail ballots to homeowners by May 14. Homeowners will then have one week to cast the ballots. On May 25, the advisory votes will be counted. And on May 29, delegates will cast their votes for or against the land deal.
All dates are tentative.
In a phone interview last week, board president Dave Light publicly committed to voting the way homeowners direct him.
“I’ll vote the way the majority of people in my district want me to vote,” Light said.
A yes vote from Light is critical for Bonfante Gardens. In order for the land deal to pass, two-thirds of delegates votes (154 delegate votes out of 231) must be in favor. Light alone carries 142 votes.
Bonfante Gardens needs the deal to go through so it can use the cash to help pay down a $70 million pile of debt. The park and Shapell have spent the last few months trying to convince Eagle Ridge homeowners the land deal can be a win-win situation for all.
Tagged onto the development, which will put money in the pockets of the theme park and Shapell, is a three-acre park with long-sought amenities such as a swimming pool and tennis courts.
Light supports the land deal upon the condition a third access road into Eagle Ridge is constructed. Shapell and Bonfante Gardens will let Eagle Ridge homeowners use – on a limited basis – the park’s entrance to access the community. However, Truebridge is not convinced the access is necessary.
Truebridge said he will add to the ballots a question asking whether residents believe a third access is necessary. Truebridge said building a third access will hike up Shapell construction costs by at least $500,000.
Homeowner reaction
One of the more vocally disgruntled homeowners, Michael Patterson, was encouraged to hear about Shapell’s plan to let all homeowners cast votes.
“That’s following the rules (of the Eagle Ridge bylaws),” Patterson said. “It’s the only right move.”
According to Patterson, the community’s bylaws state that delegate voting can only be done on monetary issues.
Still, some homeowners opposed to the delegate system are skeptical the popular vote will rule.
Eagle Ridge resident Michael Matthews lost all hope in fairness when at an April 29 board meeting, he says, Light and fellow board member John Lang turned down a chance to scrap the delegate system for a popular vote.
Matthews said the two Shapell-appointed board members made a motion to do a popular vote and Light and Lang voted no.
“It’s a contradiction,” Matthews said. “If you are going to commit to a popular vote now, then why didn’t you just run a popular vote when you had the chance?”
Matthews also doubts delegates will keep to their word since the homeowners association’s bylaws require delegates only to vote their own conscience. Matthews wants to be able recount the popular votes. He also wants the delegates voting to be done publicly, not by secret ballot.
Truebridge has always said the popular support of Eagle Ridge homeowners was crucial to Shapell. Truebridge has said disgruntled Eagle Ridge residents could fight the project every step of the way as it moves forward at City Hall.
“I’ve been in this business long enough to know I won’t make everyone happy. As always, someone opposed to a project can’t be prevented from going to the Planning Commission and the Council and expressing that opposition,” Truebridge said. “But for me, I have to know and be able to communicate that a majority of homeowners support this development.”
