Napa Lawsuits Snarl Chinese Tycoon’s Howell Mtn Land Buy

A Chinese tycoon with prominent global winery and vineyard holdings is still waiting to buy a substantial piece of Napa Valley’s Howell Mountain, thanks to a deal gone sour between Pacific Union College (PUC) and an Atlanta real estate developer.

Court records indicate that the deal, in which the developer was to spin off part of their 730+ acre purchase to the Chinese investor, went sour because of land title problems that included Pacific Union College’s failure to disclose more than $16 million in trust deeds on the land in question. The college quietly added another $8.5 million to that total after being sued by the developer.

Informed sources say that the Seventh Day Adventists college may have failed to work through the title issues with the developer because of its aversion to selling to a alcohol-related operation — something PUC has admitted in the failure of previous land sales.

Other sources suggested that PUC broke off talks because it wanted a “cut” of the revenues that the developer was going to get from the Chinese investor.

A knowledgeable real estate expert not connected with the case said, “it may or may not have been illegal for PUC not to disclose the trust deeds up front, but it was certainly unethical and deceptive.” The attorney added, “anyone looking at buying anything from them [PUC] should now know that the land is encumbered to the tune of almost $25 million.”

Wine Industry Insight contacted all the parties involved, but none would offer any comment. PUC failed to respond entirely.

This is just the most recent setback for the Seventh Day Adventists college which has been embroiled in years of controversy with neighbors over its plans for developing college lands in and near Angwin. See this link for more details.

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Also In This Article:

The full text of the following sections is available to premium subscribers of Wine Executive News.

•  AGREEMENT DISCLOSED SPINOFF TO CHINESE INVESTOR

• PUC REFUSES TO RESOLVE LAND TITLE AND DEED ISSUES

• PUC SUES TO STOP DEVELOPER’S LAWSUIT, SAYS HAS ANOTHER BUYER

• JUDGE DENIES PUC’S REQUEST, DEVELOPER SUIT PROCEEDS

• PUC ADDS $8.5 MIL IN NEW DEBT TO LAND AFTER LOSING
  

• ANOTHER POSSIBLE LEGAL/ETHICAL BREACH FOR COLLEGE?

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