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River Valley Times

Development Behind Reservoirs Is Ruled Out

Jan 23, 2025 04:33PM ● By Gail Bullen River Valley Times Reporter
RANCHO MURIETA, CA (MPG) - Rancho Murieta Properties has confirmed that it has abandoned plans to construct 136 residential lots behind the community’s three reservoirs as part of the proposed Rancho North development. 
John Merchant, vice-president of Save Our Lakes and Open Spaces (SOLOS), made the initial announcement on social media on Jan. 9 after meeting with three Rancho Murieta Properties representatives earlier in the day.
“I believe this action spells ‘compromise,’ and I hope we have opened up a line of communication to the developers that will expand as we work through the process,” Merchant said in his post.
Greg Dyer, Rancho Murieta Properties’ chief operating officer, confirmed Merchant’s report in an interview and an email to the River Messenger Times on Jan. 10. He also explained why the investment group made that decision.
Dyer said a variety of factors were involved. 
“Construction of infrastructure, satisfying environmental issues, and anticipated costs were just too problematic to be worth the effort,” he said. “We have not developed any plan for Lot 11 (formerly Villages A, B, C & D).”
Merchant also announced on social media that 39 acres adjacent to the Rancho Murieta Community Services District office have been excluded from development plans. The original proposal had included 88 residential units and 160 apartments.
Dyer was asked for confirmation. 
“That is true for now. Technically, this was not yet part of our application but was in the process,” he said. “But again, the costs of infrastructure and obtaining satisfactory access to the property were very costly and would take years to accomplish.”
Dyer was also asked whether the availability of water for the 561 residential lots remaining in the county application had been discussed. 
“Sort of, but we ran out of time,” Dyer said in an email. “We discussed many issues with which we both agree, covering the Country Club, Waste Water Disposal, and his thoughts on water.”
In addition to his position with SOLOS, Merchant also is a member of the Rancho Murieta Community Services District Board.
When asked if he planned to engage further with Merchant and the entire board, Dyer said, “Definitely.”
According to Dyer, the meeting was initiated after Bob Keil, the developer of the Residences subdivision, requested that he update Merchant on the revised application for the proposed Rancho North project. Rancho Murieta Properties representatives Tony Valez and Jeff Pearson also attended the meeting.
Dyer described the meeting with Merchant as very productive.
“I appreciate his time and insight,” Dyer said. “He cares about the community and I hope he realizes that I do too.”
Dyer noted that in October, Rancho Murieta Properties decided to remove Villages D, E, F and G from the county application. He publicly announced the change during a question-and-answer session held at the Murieta Inn in early December. Carol Anderson Ward, the primary investor in Rancho Murieta Properties, also addressed attendees at that meeting.
However, the public was not notified about that meeting, and the Rancho Murieta Country Club Board was not invited, even though the second half of the private meeting focused on the club, according to Rancho Murieta Country Club Board President Eric Dutton.
Save Our Lakes and Open Spaces was established after Rancho Murieta Properties filed a 2014 application with Sacramento County to build 925 homes. 
Cheryl McElhany, a retired educator and now president of the Save Our Lakes and Open Spaces board, played a key role in organizing the group’s formation in 2015.
In a 2015 interview with the River Valley Times, McElhany explained that Save Our Lakes and Open Spaces was founded with two primary goals. The first was collaborating with Rancho Murieta Properties and local regulatory agencies to modify the development plan, ensuring that construction around the community’s three reservoirs would not proceed. 
The second was to build a coalition dedicated to permanently acquiring and preserving the lakes, trails and open spaces.
McElhaney said her group wasn’t opposed to development. 
“We want responsible development. Don’t put in high-density homes around our most valuable resources,” she said.
In recent years, Save Our Lakes and Open Spaces has shifted its focus to advocating for a sustainable and reliable water supply for the community, addressing challenges posed by climate change and ongoing drought conditions.
Merchant recently led a petition drive urging the board to declare a moratorium on development. McElhany presented the petition to the Community Services District Board at their Dec.18 meeting. It included 2,025 residents’ signatures.