County Says Builder Didn’t Promise to Give Away Lake

Ventura County officials concluded Monday that billionaire David H. Murdock, who is building a 1,900-acre country club at Lake Sherwood, did not vow to give the lake away as a condition of the project’s approval in 1987.

Murdock’s development company, which is seeking to recoup millions of dollars it spent to repair and refill the once-dry lake, recently asked the county for its legal opinion on whether the developer’s promise to “dedicate” the lake to a community group meant that he would not receive compensation for it.

After reviewing county records and the law for several days, county administrators found that the agreement by Murdock “neither prohibits nor mandates compensation being paid by the organization accepting dedication of the lake,” said Tom Berg, director of the Resource Management Agency.

The ruling leaves Murdock free to pursue formation of a special assessment district through which he can tax the 120 current homeowners and 650 future owners at his country club for the lake improvements.

Murdock’s proposal for the special assessment district, which would also collect fees to pay for about $20 million in sewer and water improvements, is now being studied by the county Public Works Department. It probably will be forwarded to the Board of Supervisors within a month, officials have said.

“Whether any compensation will ever be paid remains to be seen,” Berg said.