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The Saga of Guenoc Valley College

URGENT: Update 6/24/2010, County Sups return land to wealthy donor! Local citizens don’t benefit from any promises – left holding the bag for thousands of dollars while streets go unrepaired and excuses are handed down by County for failure to produce on any promise.

Read updates at Bill-Wink.com

09/04/02

Guenoc Valley College

Middletown, CA

Today, near the noon hour, I spoke extensively with Dr. Peretti about the college project at Guenoc. She assured me that because this is such a unique effort, that is developing a 4 year college without a parent college, the federal government is delaying the request for the 501C3 non-profit status by continuously requesting more information.

I informed Dr. Peretti that I support the concept of the college but that I have a problem when the rules aren’t applied equally to everyone. That my issue was not with the college but was with the land that has been donated to the people of Lake County and the appearance that the previous land owners have not made any effort to separate themselves from the donated land. That it appears they, the previous owners, are still controlling and benefiting from the 1040 acres that are no longer theirs. I informed her of my conversation with County Counsel when I specifically asked Counsel: If I donate my land to the county, it is then removed from the tax roles, can I still control and benefit from that land? And Counsel’s answer was, NO!

She assured me she was not aware of that situation. I specifically made reference to the “no trespassing” sign at the entrance to McCain Canyon and pointed out that if she didn’t put it up and the county didn’t put it up then who did? She said the ranch personnel do help her out from time to time. I also talked of the hunting club and the cattle situation and she said she had never seen any cattle on the donated land. I reminded her that 1,000 acres is about equal to a one and a half mile square and with no fences or barriers separating the Lake County land from Guenoc land, cattle could quite easily graze in and out and she might never see them.

I also raised another issue I was not sure of, and that was, from my understanding of the legal document regarding the donated land, the land’s use is strictly limited for “college purposes” and those purposes are spelled out, but it doesn’t say “the” college must be her college. Meaning, couldn’t any college present a valid plan for developing the land and request the land be turned over to them?

Do I support the concept of a college for Middletown? Yes. Do I think it will become a reality in my lifetime? Maybe. However, I do wonder what this whole dog and pony show is about? Is this sincerely for the people of Lake County? Because if this is truly a benevolent act for the people here in Lake County, then why is the college going to be named after some Saint from Spain buried in Scotland? Why not “The College of Middletown” or “Middletown College”? The folks at Guenoc Winery have told us the name “Guenoc” is not of Native American origin, as we believed, but is Celtic in origin and can still be found in northern France and Scotland. So to name our college after a person that has had no significant impact on us or our area is questionable at least. To name the college, “The College of Middletown” would provide destination identification for the community and would instill a sense of pride and belonging for everyone. But, maybe this is not for everyone. Maybe this is not about Middletown. Maybe this is all about something else?

02/03/03

Guenoc Valley College

Middletown, CA

COLLEGE AT GUENOC ONE STEP CLOSER TO REALITY?

Today I asked Dr. Peretti about the status of the college’s 501c3 non-profit status. She was pleased to inform me they, Guenoc Valley College, had received their 501c3. This should now clear the way for Lake County to transfer ownership of the property they hold for a college to the holder of the 501c3. This should also clear the way for the hundreds of millions of dollars that have been promised for building of the college to come rolling in.

Dr. Peretti still holds her belief ground breaking for the college will happen in 2004.

According to IRS Publication 557 regarding private schools, I believe there should be something forth coming in the paper explaining the nondiscriminatory policy of the new college, or one should be made available on request.

Stay tuned as it has taken nearly five years to reach this point. And who has benefited in the past five years?

07/28/04

Guenoc Valley College

Part I

“Lake County Liberal Arts College to Become a Reality”

Those were the headlines in 1998 and they were followed up with: “Thanks to people like Chuck Doty, of Lake County Business Outreach, and Dr. Tim Sanders, heading up the college project, the dream was not allowed to die. Those interested in more information or in supporting the project, come to our first Jazz Benefit for the college on Sat., May 30.”

And so, the grand idea was launched. Orville and Karen Magoon were showcased as the benevolent benefactors with press like the following: “Orville and Karen Magoon, both former university teachers, have always hoped Guenoc might someday be the site for a college dedicated to the idea of building students for leadership in the world. The donation [the land] makes real a dream ten years in the making.”

They reached out to locals and asked them to participate in the following release: “For those of you interested in providing insight, ideas, donations, or material contributions, please contact Dr. Tim Sanders, at 1912 Campus Road, Los Angeles, CA, 90041 or Chuck Doty of BORT (Business Outreach and Response Team) at P.O. Box 580, Lakeport, CA, 95453. Phone 707-262-1090 for more information.”

Press releases were sent out and the balloon went up. Orville Magoon was named Mr. Lake County, folks were patting themselves on the back and all the while old time Middletown residents joined the folks in Missouri and said “show me”.

Yet the story progressed through 1998 with more information released as follows. “On Saturday, May 30, the first college fundraiser was held, where excitement ran high and donations far exceeded expectations. Another College Day is planned for Saturday, September 12. Those interested in providing art work or poetry, street music, miming or anything else appropriate to the cultural, academic world are encouraged to give us a call…”

By the middle of 1999 we were told to: “Watch the newspapers and internet for fundraiser events and dates!”, and then came a progress report.

“College at Guenoc Project Progress Report”

was the header followed by: “On May 12 and 13, luminaries from college campuses around the nation met at Guenoc to discuss the development of the College at Guenoc. The focus was on the literature of Professor Dennis O’Brien, who addressed the group. As the aim of the college is to be leadership, the focus seemed most appropriately turned on the humanities, bedded in the thoughts of the great classical philosophers.”

By the year 2000 the “show me” group was starting to crow since the locals had been told the college would welcome the graduates of 2003 and progress didn’t seem to make that look very feasible. Yet the PR campaign continued. People from out of the area were now looking toward South Lake County as a place to invest as the balloon went higher and higher.

In June of 2000 new energy and direction was brought to the project by Dr. Fran Peretti and the header read:

“Dr. Peretti takes the Reins for Guenoc Valley College”

The release went on:

“Considerable funding is still necessary to make the college possible, and Dr. Peretti has been enlisted to drive the campaign. A newcomer to Lake County, she wants to see ground break for the college as quickly as possible. The Guenoc College spells opportunity and enrichment for our community. This college will be a reality sooner than anyone can imagine, with Fran and Guenoc teaming up to enlist the hope and vision of our community.”

Sure enough onward and upward the balloon went and in September of 2001 this:

“Fourth Annual Lake County Wine Auction Gala a Grand Success”

“Saturday, September 29. $15,000 approximately was earned to support the Clearlake Community Center, PEG Channel, Guenoc Valley College and the Middletown High School Technology Program in Lake County.”

Unfortunately, even though “world famous architects” would meet at Guenoc, walk the land and provide renderings of their concept of “Guenoc Valley College” the “concept” is all that has been attained. However noble the “concept” the reality of this project has been unattainable as was conceived.

The idea was to build a college with funds raised exclusively for this project and without a parent institution. Something that was basically unheard of in today’s environment. The project would be a 501c3 non-profit corporation which would provide a tax benefit to all contributors. Unfortunately, acquiring a 501c3 tax exempt status, as a teaching institution, is nearly impossible to do, as Dr. Peretti has learned.

It took 43 months to build the Oakland Bay Bridge. From the time Japan attacked Pearl Harbor it was 44 months later they surrendered. It took 52 months to complete the Golden Gate Bridge and yet 76 months latter they have not turned one shovel of dirt relative to Guenoc Valley College.

So today, 76 months later, one must question this whole process. Questions like: What is the status of the college? What is the status of the land? What happened to the money that was raised? Who has benefited from this hoopla? Was this a serious endeavor or just a PR campaign designed to sell real estate and promote Lake County and Guenoc Winery? Was this whole process legal? Who was involved?

Hopefully some of those questions will soon be answered. I have been informed that Dr. Peretti is to address the Board of Supervisors regarding the status of the college project on September 7, 2004. Plus I am continuing to purse Lake County over this issue.

Stay tuned.

09/08/04

Guenoc Valley College

Part II

Lake County Government agrees to continue subsidizing

Guenoc Valley College Project.

Although for Guenoc Valley College to become a reality it will require raising several tens of millions, if not hundreds of millions of dollars in donations, it seems they are unable to raise enough money in donations to pay the property taxes on the land that was donated for their college project.

This single issue, the ability to raise funds, is the heart, soul and foundation of this project. Therefore, it makes the entire project fall into question and doubt when that ability, the ability to raise funds, is, admittedly by them, incapable of raising just a few thousand dollars to pay the property taxes.

Today at the Lake County Board of Supervisor’s meeting, Dr Fran Peretti addressed the Board to bring them up to date on the proposed Guenoc Valley College. Dr. Peretti assured the Board she would succeed in raising the millions of dollars needed, but as to when that would happen, she only reminded the Board these things take time. She went over a litany of road blocks that any developer would readily be aware, excepting those that actually concerned the human element regarding an institution of higher learning. We heard the names of very prestigious persons who were donating their time to the project but there was no mention of the 2004 ground breaking that Dr. Peretti had spoken of previously. Further, Dr. Peretti stated they, the college, had acquired their federal non-profit status last year, but admitted they were not ready to accept the land donation that Lake County has held for them since March of 1998, some six and a half years.

County Counsel made note to the Board that the county was to hold the property only until the college was able to accept the land and he stated the college was now in a legal position to accept the land. His opinion fell on deaf ears leaving the taxpayers to continue to subsidize a promise of millions that can’t afford thousands.

When Magoon Estate, Ltd. donated the land to BORT, a 501c3 non-profit corporation, they were apparently unable to hold the property for the same reason the College is unable to now… money!

Dr. Peretti stated the College was unable to pay the $7,000.00 annually in property taxes.

Since the Board of Supervisors agreed to continue subsidizing a proposed multi-million dollar project at tax payers expense for an undetermined amount of time, now, after six and a half years, they at least finally agreed responsibility for the land should be placed under the umbrella of a county department. It was the consensus of the Board that the responsibility should go to Kim Clymire, Public Services Director, and his department. The Board further directed Mr. Clymire he should post the land with no hunting or trespassing signs.

The Board also agreed they would explore turning the stewardship of the land over to the Lake County Board of Education.

As a side bar, Dr. Peretti also announced Guenoc is for sale, and that prospective buyers have found the idea of a college adjacent to the land they are considering purchasing as a plus. She said one buyer, whom she did not mention the name of, was willing to put up 10 million dollars in “seed money” for the college, along with the purchase of Guenoc.

I would be happy just to see the money for the property taxes myself.

Bill Wink

Space

June 8, 2009

Is this the end for

Guenoc Valley College

The Guenoc Valley College project first claimed it couldn’t accept title to the donated land because they were not a 501c3 nonprofit organization. Then they couldn’t accept title because they couldn’t pay the property taxes.

On September 7^th, 2004 Dr. Fran Peretti told the Lake County Board of Supervisors the college project was unable to pay the $7,000. annual property taxes should the project be forced to accept the land donation, therefore, she requested the county continue to hold the land in trust.

Lake County has been the owner for over eleven years now and my math computes we have subsidized first Magoon Estate and then later Malulani Investments to the tune of $77,000 while we can’t afford to fix our roads, have a new library or any number of other things. I say subsidized because neither Magoon nor Malulani gave up anything during this process. We citizens had no access to our land while the land was still being accessed by others. Even Guenoc Valley College, who had no legal standing regarding the land, had more say than the taxpayers who owned the land.

The deed says the land must be used for college purposes but it doesn’t state what college has to hold title, read it yourself. Did the county offer title to any other college? I think you’ll find the answer to that question is NO. A college could use the land for studying bugs and bunnies.

Now the Board of Supervisors is going to give the land back to Langtry Farms or Malulani Investments and I ask why? Was that the plan all along, I wonder?

Update: The California Constitution (Article XVI  6) prohibits any public agency from making "any gift of any public money or thing of value to any individual, municipal or other corporation whatever."  The determining factor in whether there has been an illegal gift of public funds is whether the expenditure was for a "public purpose".

Will deeding the land to Malulani Investments, Langtry Farms serve a public purpose? Hmm.

Documentation Relative to Guenoc Valley College

THIS MEMO IS PUBLIC INFORMATION

It is from Cameron Reeves, Lake County Counsel, to the Lake County Board of Supervisors regarding:

Donation of Real Property for the College at Guenoc Project.

PLEASE PAY SPECIAL NOTE TO THE LAST PARAGRAPH ABOVE WHERE IT IS STATED THAT LAKE COUNTY WOULD BECOME THE OWNER

Resolution 98-95

Board of Supervisors, County of Lake, State of California

Resolution Accepting Donation of Real Property and Acceptance of Assignment of Water Agreement for College Purposes

(College at Guenoc Project)

SPACE

THIS IS PUBLIC INFORMATION

BELOW IS THE DEED AS RECORDED AT THE LAKE COUNTY COURT HOUSE.

This deed reflects the transfer of real property from Lake County non-profit corporation BORT (Business Outreach and Response Team) to the County of Lake, State of California.

This is the 1,000 plus acres that was donated by Magoon Estate for the Guenoc Valley College Project.

The date on this deed is March 26, 1998

BELOW IS EXHIBIT IV OF THE DEED

Created March 1, 2002

Updated constantly © March 1, 2002- www.middletownca.com

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