Diablo Grande’s new developer is defaulting on taxes. Foreclosure cases are in court
The new owner that took over the Diablo Grande development two years ago is delinquent on more than $2 million in property taxes, according to a Stanislaus County tax collector listing.
Angel’s Crossing LLC owes $2,072,208 in unpaid taxes on 65 parcels at the resort community in western Stanislaus County. The Treasurer-Tax Collector’s office published the three-year tax default listing in Sunday’s Modesto Bee.
The list shows $1.43 million is owed since the 2018-19 fiscal year on the Diablo Grande clubhouse property on Morton Davis Drive. An additional $643,160 is owed on 64 other parcels at Diablo Grande.
Donna Riley, county treasurer-tax collector, said the county could exercise authority to sell the properties in two years if the taxes are not paid. Riley said Monday a review of the Diablo Grande parcels showed Angel’s Crossing doesn’t have payment plans for the tax debt. Some owners on the list are making payments.
Top officials for Angel’s Crossing did not return messages from The Bee.
The new developer took over Diablo Grande in 2020 from World International, which also was saddled with tax debt and costs. Representatives for Angel’s Crossing talked about building nearly 4,000 homes over a 20-year period, in addition to the current 600 homes at the troubled resort.
Diablo Grande residents said they haven’t seen the new developer invest in the resort project. According to court documents, Angel’s Crossing has not paid contracted amounts to the homeowners association or special taxes to Western Hills Water District, which supplies water for Diablo Grande.
Mike Crumb, a homeowner since 2006, said the clubhouse is closed and the two golf courses that once were the glory of Diablo Grande are dead.
“That supposed developer has not spent one penny on this development,” Crumb said.
In a civil case in Stanislaus Superior Court, Western Hills Water District is attempting to foreclose on parcels held by Angel’s Crossing due to nonpayment of special taxes for a community financing district. Western Hills also is taking action to foreclose on tax-delinquent parcels still owned by World International.
Julie Davis, president of the Western Hills Water District board, said millions of dollars in special taxes have not been paid since the end of 2017.
If a court decision goes in favor of Western Hills, the affected parcels could be sold to new owners to recover the unpaid taxes. Residents hope prospective new owners would do more to develop the resort.
The Western Hills case against Angels Crossing is scheduled for a court hearing and settlement conference in November.
Diablo Grande originally was a 33,000-acre master plan with five villages and a convention center, but only one village was authorized for development and the project went into bankruptcy in 2008. About 600 homes were constructed in the initial phase. A county-approved amendment in 2017 allows for 2,354 more dwellings at Diablo Grande.
Angela Freitas, county director of planning and community development, said Monday that Angel’s Crossing has not submitted any of its own plans to the county for Diablo Grande.
This story was originally published August 30, 2022 at 9:05 AM.
