Canyon Lake Property Owners Association Files Suit against EVMWD over Lake Lease

CANYON LAKE, Calif., March 26, 2015 /PRNewswire/ -- On March 20, 2015, Canyon Lake Property Owners Association ("CLPOA") on its own and on behalf of all owners of property within the shore zone of Canyon Lake filed a lawsuit in the Riverside Superior Court, asking the court to declare the rights and responsibilities of CLPOA and Elsinore Valley Municipal Water District ("EVMWD") following the end of a lease agreement between the two entities.

This lawsuit follows the February 18, 2015 notice sent by CLPOA to EVMWD claiming that since the passage of Proposition 26, an Amendment to the California Constitution, EVMWD has been charging an illegal tax upon CLPOA. To date, EVMWD has not responded to the claim other than to express their disappointment in newspaper articles or in press releases issued directly to the newspaper.

The current lake lease expires on December 31, 2022.  Given the inability of CLPOA and EVMWD to come to a long term agreement to extend the lease, CLPOA is seeking a ruling from the court that tells both parties their respective rights and obligations at the end of the lease. 

EVMWD has taken the position that without the lease, all of the structures within the shore zone will have to be removed.  CLPOA disagrees, and believes that because of the time that these structures have been in place, the owners have a perpetual license that cannot be revoked by EVMWD.  These licenses are based upon several factors that are all discussed in the lawsuit on file in Riverside County Superior Court.

EVMWD has declared that CLPOA has defaulted under the terms of the lease.  According to Dave Eilers, President of CLPOA, "this is simply not correct.  [CLPOA] has overpaid under the lease and has informed EVMWD of this fact."  The California Constitution prohibits the charges that EVMWD has levied upon CLPOA.  Eilers said, "[CLPOA] is seeking a refund of over $6,000,000 in overpayments since 2010."

If the court determines that CLPOA needs to pay more than it has paid, the money is available.  The money for the quarterly payments is being placed into an escrow account for this exact purpose.

Currently, EVMWD does not have the ability to take away CLPOA members' boating rights or use of the shore zone, as it will take an order from a judge to make that happen.  Even if that were to happen, there are safeguards within the lease that allows CLPOA to undo any breach for up to 24 months.

Eilers also said that "when EVMWD is ready to negotiate a fair lease payment/charge, Canyon Lake Property Owners Association is ready, willing and able to sit down to discuss the matter. Despite the filing of the claim and lawsuit, Canyon Lake would be happy to talk and work this out.  If EVMWD intends to dictate terms though, such a negotiation will not be successful."

Silldorf & Levine provides legal representation to Canyon Lake Property Owners Association

SOURCE Silldorf & Levine, LLP

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