To Our Neighbors in SLBE, Avila Beach, and Avila Valley

Dear Neighbor:

Over the last several years much has occurred in our community, including most recently this year’s pandemic. Regretfully with Supervisor Hill’s passing and virus concerns, normal communications have been restricted and we’ve not been able to reach out as we might like. Please consider this letter a “catch-up.”

As a follow-up to our last community correspondence on April 30, 2019, we’d like to clear-up several misconceptions and provide an update with regard to our Avila Beach Resort (ABR) business.

We have three important topics we need to share with you:

HOA Litigation

Regarding the HOA litigation, a settlement appears near. While the Memorandum of Understanding (MOU) between the parties is now public due to the recent Mallard Green involvement, we hope you’ll take this opportunity to review it for yourself, via the website link below.  The MOU set a fairly specific framework for final settlement documents.  There were some pragmatic details to be worked out, but an agreement in principle was reached.

Although you may have heard that we have never had access to the loop road, ABR’s rights were established in the original development in 1968 where we built and maintained these roads– before the creation of the HOA. Our use through the Bay Estates was never excessive nor problematic and our designated individuals have always had passes purchased and placed on their vehicles, the same as every homeowner, to allow for access through the gates for business operations, including access to our mailboxes. 

Since day one, we have continued to pay the monthly HOA assessments as prescribed in the CC&R’s Section 4.12.  Beginning in 1987, to date, this has amounted to more than one half million dollars ($500,000) to the HOA.

Contrary to what you may have heard, neither of the parties in the MOU contemplated the authorization of a “parade” of shuttle buses through the Bay Estates.  Instead, we will continue to operate quietly as we have for decades, but for the sake of settlement, we agreed to some specific limitations in the spirit of compromise.  We have been unaware of any problems from our prior consistent use and we anticipate that none of the residents of the HOA will even notice a difference between pre- and post-settlement use. 

ABR has NOT asked for any new rights, nor have we sought public access.  Our existing access was arbitrarily denied by the HOA Master Board after first having our access and parking rights removed for the Avila Village, forcing us to take legal action on behalf of the owners, tenants, and employees of Avila Village.

Our effort to obtain an early injunction was denied by the court for the sole reason that we could not show the irreparable injury necessary for such preliminary relief.  The court reasoned our injuries during the pendency of the lawsuit could be addressed by damages paid by the HOA. Here’s what Judge Barry LaBarbara had to say about that in writing:

“In reviewing the voluminous evidence submitted by both Parties, the Court finds that the Rossi Plaintiffs have established a likelihood of prevailing on the merits.”

While we’re confident in a favorable ruling should this go to the end, the money and time being wasted on this battle can serve all of us better through a settlement.  As set out in the MOU, a settlement avoids the continued expense of attorneys’ fees and removes the risk of damages that the HOA might be required to pay when our suit is resolved.

 
Business Operations

In-spite of the coronavirus, we’ve remained open with golf, food and beverage and some limited gatherings. Large events and inside activities are not likely to occur for some time. Sadly, over half of our great staff remain furloughed.  As a result, we’ve elected to withdraw the proposed new county 6.56 business license application.

That new license application was intended to replace the existing evergreen 6.56 license. We will continue to operate within the uses allowed by both our zoning and business licenses, including our existing 6.56 license as approved in 2004- while the Avila by the Sea project continues through the county permit process. We anticipate the environmental review will take place in 2021.

Avila by the Sea Resort Application

Finally, we are excited that our Avila by the Sea Hotel/Resort application has been accepted by the SLO County Planning Department.  This important step moves our project into the next phase for EIR scoping which will bring the project forward for additional public input. Contrary to what you might be hearing, Avila by the Sea customers and the public will not have access to HOA property as a result of the settlement. 

We hope that a working relationship with the HOA can again exist to resolve issues in a timely, constructive, and efficient manner. That’s how it always was and it’s unfortunate we’re all entangled in this legal situation because of a campaign of misinformation that has already resulted in substantial attorney fees incurred by both sides.

Thank you for your thoughtful consideration 
Your neighbors at Avila Beach Resort