University Park Recreation District signs settlement agreement

A lawsuit looming over the University Park Country Club community soon will come to an end.

Supervisors on the University Park Recreation District board today voted unanimously in support of a settlement that allows the community to move forward with the purchase of the clubhouse and affiliated amenities, the golf course and developer-owned land within the district’s boundaries. 

Per the agreement, University Park resident Richard Garrett will drop his lawsuit against the district, and the district will reimburse him up to 40%, or $160,000, of his legal expenses. The purchase price of the University Park Country Club from its owners/developers, the Neal and Pasold families, will be reduced by $225,000 to $16.75 million, and the sellers have agreed to eliminate an escalation clause in the purchase contract, which began increasing the total purchase price by $46,000 a month starting June 15.

Supervisor Michael Smith said the district can capitalize on lower-than-expected municipal bond rates. Interest rates now are at about 3% compared with the projected 4%, and the difference is expected to save the district about $5 million over 30 years.

“We all agree this is a unique community that we value and cherish,” Smith said. “Today is the day for us to unite, rally and focus on building an even better University Park for all of us — now and in the future.”

Garrett said he supported the settlement because it creates a way to increase the district’s reserves, and therefore mitigate potential for special assessments.

The University Park Recreation District, a governmental body created in August 2018, was formed to purchase and operate the University Park Country Club and community amenities. It planned to issue $24 million in bonds to buy the 266-acre golf course and club, ponds within the community and an additional 100 acres of conservation area and other land from the community’s developers.