Diablo Grande Community Facilities District No. 1
The Western Hills Water District (WHWD), acting in its legal capacity as Custodian and Trustee of the Diablo Grande Community Facilities District No. 1 (DG CFD), is actively seeking a qualified and financially capable master developer to acquire and complete the Diablo Grande development through the District’s Chapter 9 Bankruptcy proceedings.
As Custodian and Trustee, WHWD is responsible for protecting, preserving, managing, and maximizing the value of the CFD’s assets for the benefit of the Community Facilities District and its bondholders. The District operates the CFD as an ongoing public enterprise and business operation while ensuring that all assets are maintained in accordance with applicable federal, state, and local laws.
The Diablo Grande Community Facilities District is not merely a collection of undeveloped land; it is an active enterprise consisting of significant real property, commercial assets, infrastructure, contractual rights, and revenue-producing operations. The District continues to manage these assets to preserve their value while positioning Diablo Grande for future development.
Among the District’s current responsibilities are:
- Managing and maintaining CFD-owned real property and facilities.
- Administering leases, licenses, and contractual agreements for District-controlled properties.
- Leasing the Diablo Grande Clubhouse and related facilities for meetings, events, and other approved uses.
- Operating and managing the District’s recreational vehicle (RV) storage facilities.
- Collecting rental income and license fees from commercial tenants, including telecommunications facilities such as Verizon Wireless, for the use of District-controlled property.
- Protecting and securing all CFD-owned improvements, equipment, and real property.
- Preserving infrastructure and public assets to maximize their long-term value.
- Marketing District-owned assets and coordinating development opportunities for prospective investors and developers.
- Managing financial operations associated with District-owned assets for the benefit of the Community Facilities District and its bondholders.
The District’s objective throughout the Chapter 9 Bankruptcy process is to facilitate the orderly transfer of the Diablo Grande development to a qualified master developer possessing the financial resources, technical expertise, and long-term commitment necessary to complete the community as originally envisioned. A successful redevelopment will benefit existing residents, future homeowners, bondholders, businesses, public agencies, and the surrounding region by restoring economic growth, increasing the tax base, creating employment opportunities, and completing the planned residential and commercial development of Diablo Grande.
WHWD remains committed to conducting all operations with transparency, fiscal responsibility, and sound business practices. As a California Special District, the District continues to meet its statutory obligations by operating essential public services while responsibly managing the assets entrusted to its care. Every decision involving the CFD is made with the objective of preserving public assets, protecting the interests of bondholders and taxpayers, and enhancing the long-term value of the Diablo Grande community.
Qualified developers, investment groups, or entities interested in acquiring the Diablo Grande project through the Chapter 9 Bankruptcy proceedings are encouraged to contact the District’s Development Coordinator to obtain additional information, review available development opportunities, and arrange a comprehensive tour of the community, its facilities, infrastructure, and available properties.
For additional information or to schedule a property tour, please contact:
Gina Scotland
Development Coordinator
Phone: (209) 679-1582
Email: rescotland@yahoo.com
