Lake San Marcos – Bankruptcy Update

The following info was furnished by the “Friends of Lake San Marcos.”  See below photo.


On May 2 another hearing was held in Federal Bankruptcy Court in downtown San Diego.

Concerning the Executive Golf Course (which was in a separate bankruptcy action not involving the Lake and Recreation Facilities), CDC has purchased the note on the Executive Course from Frazar, and have petitioned the court to allow this bankruptcy action to be dismissed (closed).  This is a great plus for Lake San Marcos homes surrunding the golf course.

The court has responded that as soon as the US Trustee informs the court that all other past due taxes, Vallecitos water bills, and other trade issues have been resolved, the court will dismiss this bankruptcy.  CDC indicated all these bills have been brought up to date and there are no remaining issues.

Therefore, CDC will have complete control of the Executive Course in the near future, and that property will no longer be involved in any bankruptcy proceedings.

The other bankruptcy proceeding involving the Lake and Recreational Facilities continues to be “on hold” awaiting a response from the National Credit Union Association concerning the purchase of the note they hold on the Recreation Facilities.

In general things are looking better at Lake San Marcos.  The $9 million hotel remodeling is nearing completion and the buildings sport a fresh, clean, modern appearance.   Many of the abandoned boats have been removed from the water, and as of last week, they have also been removed from the parking lot above the Convention Center.  The Meridian continues to work towards its grand opening, and last week they planted fifteen palm trees along San Marino Drive.  Some who have toured the Meridian report it will be very luxurious.  Houses are again selling well, and prices are starting to return to pre-recession levels.

While many residents are patiently waiting for further progress on the Lake and Recreation Facilities, activity is moving forward on a number of other fronts.

If you would like more information about the real estate in Lake San Marcos, contact Gary Harmon, resident and Lake San Marcos specialist.