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Lexington Reservoir and the Developers


Documents referred to in this article:

Document signed by Ulysses S. Grant (99k)
Document signed by Chester A. Arthur (99k)
Ancient Files: According to current zoning laws that cover hillsides and watersheds, Arlie can not create lots any smaller than 20 to 160 acres on the property. But by submitting these and eleven other hundred-year-old records to the county, Arlie now has legal lots as small as 1.5 acres, and more may well be on the way. Environmentalists have accused Arlie of using this legal technique to circumvent the county's planning laws.

Redwood Hills Trust Deed (66k)
Questionable Company: Activists at the Greenbelt Alliance were alarmed when they saw this and other records documenting loans, options to buy and property sales between Arlie and three limited liability companies. This document shows a $75,000 loan that Arlie received from Redwood Hills LLC, which was secured by portions of the property. Redwood Hills and Los Gatos Hills LLC were both incorporated in February 1998 in Oregon, shortly before they became involved with the property. Musumeci says that Arlie had nothing to do with the creation of these companies.

LTC Exchange Company Deed (66k)
More Money: LTC Exchange Company, a California corporation that does business in Oregon, loaned Arlie $16.9 million to purchase the property. This trust agreement records a $500,000 loan LTC made to Arlie. Part of the property was used as collateral for the loan. Musumeci says that LTC was brought into the deal for tax purposes.

Lex Company Deed (83k)
Moving Target: Lex and Arlie sold portions of the property back and forth. This sale deed, which records Lex selling property back to Arlie, is signed by Jun Lee. He is also involved with Hong Kong Metro, the company that owned the property from 1989 until selling it to Arlie in late 1997.

Alma Fire Station Deed (83k)
'Is this an Ambush?': Though in negotiations with the California Department of Forestry over the five acres under the Alma Fire Station, Arlie sold the property to another Oregon-based limited liability company, Frontier Land Development. John Musumeci was less than forthcoming about the sale recorded in this document.

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From the July 16-22, 1998 issue of Metro.

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