Developer of Project Defaults on Bank Loan : Simi Valley: The sale of Wood Ranch’s golf course is possible. Officials fear delays for a new elementary school.

The developer of Wood Ranch, a sprawling planned community in southwest Simi Valley, has defaulted on a $15-million loan, prompting its bank to schedule a public auction to sell the project’s tournament golf course and a dozen home sites.

The notice of sale, filed this week with the Ventura County clerk, triggered concerns Thursday at the exclusive Wood Ranch Golf Club, where membership rights are at stake, and among civic leaders, who fear that the new Wood Ranch Elementary School may be delayed.

The landowner, Olympia & York Developments, is a subsidiary of one of the world’s largest real estate companies, Olympia & York. The Canadian-based parent company sought court protection from its creditors earlier this year.

Olympia & York says it has been hurt by a worldwide real estate slump and is being forced to sell the golf course and the housing sites.

The planned public sale of the golf course and vacant lots came as no surprise to Sam Buxton, a club member and Wood Ranch resident who was golfing with two guests Thursday.

“For two years, we’ve heard that they were trying to sell it,” Buxton said. “We both welcomed it and feared it. If this (golf course) goes public, you can kiss my property values goodby.

“I’ve got a $600,000 home right here, and if this goes public, I’m not going to be able to get half that.”

The 18-hole, 200-acre golf course is among the assets slated to be sold at a Dec. 3 auction at the Ventura County Government Center, according to a notice of trustee’s sale filed at the county clerk and recorder’s office.

The notice states that the sale includes all rights “to recall, terminate or repurchase memberships in the club.”

George Dallas of Agoura said he paid a $25,000 one-time membership fee to join three years ago. He said the club has about 350 members, who also pay monthly charges for club services and must spend a certain amount at the club restaurant each month.

Dallas said he received a letter Thursday from Angus MacKenzie, the club’s director of operations, regarding members’ concerns. MacKenzie wrote that the owners, Olympia & York, were aware of the notice of sale, “and they’re making every effort to remedy the situation.”

MacKenzie did not return calls from The Times on Thursday.

A general membership meeting has been called for Sunday, and some members have proposed buying the course themselves.

“We certainly don’t want it to go to a public course,” Dallas said. “We’ve kind of talked about trying to buy it, but it’s probably too much money. I’d have to sell my dog--or my house.”

But Al D’Amato, the club’s former golf champion, said some members have already met to discuss a possible purchase. “If we can get enough people, I think we would” buy it, he said.

Olympia & York Developments could halt the public sale by settling its debt with the lender, Wells Fargo Bank, or by selling the property to another party before Dec. 3.

Peter Rosenthal, Olympia & York’s New York-based spokesman, declined to comment on what might happen to the Wood Ranch land before the auction.

On May 14, the Canadian parent firm filed for court protection under that nation’s bankruptcy laws after failing to refinance $12 billion in bank loans.

Rosenthal said Olympia & York’s U. S. subsidiary has not filed for protection from creditors in U. S. bankruptcy courts, but has been working with its creditors to restructure its debt.

During the 1980s, Olympia & York, with a partner, entered into a development agreement with the city of Simi Valley for the 3,000-acre undeveloped Wood Ranch site.

The plan called for the construction of 4,026 residences, a golf course, a small shopping center, an equestrian center and public amenities such as a school, parks and a fire station.

About 2,400 residences, the fire station and the first phase of the shopping center have been built, city planning officials said.

The scenic rolling community is considered a desirable place to live because of its modern design and its diversity of housing, which range from apartments to luxury estates, said Carlyn Paterson, president-elect of the Simi Valley-Moorpark Assn. of Realtors.

She said townhomes in Wood Ranch start at about $180,000, while large single-family houses range from $200,000 to more than $500,000.

Olympia & York, which bought out its partner earlier this year, has no immediate plans to build the remaining homes it has been allocated, Rosenthal said. “In light of the company’s overall financial situation, it’s just not something we can undertake,” he said.

Rosenthal said he had no knowledge of the company’s plans regarding the $6-million elementary school that it is required to pay for under the development pact.

But the Simi Valley Unified School District is proceeding with plans to seek construction bids in the spring and begin building the school next summer, said Mary Beth Wolford, the district’s deputy superintendent.

The district has granted the developer two one-year extensions but does not plan a further postponement, Wolford said Thursday. The district has not received the money from Olympia & York. But Wolford said, “They have a contractual obligation to provide the funds.”

She said the developer has given the district the land for the school on Circle Knolls Drive. The school, scheduled to open in the fall of 1994, will house up to 500 children in kindergarten through sixth grade.

“This is a school we are ready for,” Wolford said. “We need it, and there are families that are very anxious for us to start the construction.”

Mayor Greg Stratton, who lives in Wood Ranch, said anyone who buys the remaining residential land in Wood Ranch will have to pay for the school and abide by all terms of the original building plan.

“Any buyer who thinks they can weasel out of those agreements will meet stiff resistance,” Stratton said.

Sneiderman is a Times staff writer and Maiella is a Times correspondent.