Executive Summary
Landslide Repair Foundation is a California non-profit corporation that came in to being as a result of settlement in lawsuit filed by a number of impacted homeowners against the California
Department of Transportation (CalTrans). The lawsuit, Alexander v. State of California, Santa Barbara Superior Court Case No. 01185586, was settled with the homeowner’s agreement that they would form a corporation that would be responsible for repairing, restoring and stabilizing the hillside that is the landslide. Neither side in the lawsuit admitted any liability. However, CalTrans conditioned its settlement on the payment of $50,000,000 to a corporation that would be formed and be responsible for stabilization of the hillside on the further condition that CalTrans would have no continuing responsibility for the area of the landslide. The homeowners agreed individually and unanimously. Most, if not all, of the plaintiffs were granted dollar concessions by CalTrans that would ameliorate or compensate for all damage done to their individual properties as a result of landslide activity, in addition to the dollars that were obligated to the corporation that would be formed, for repair and stabilization of the hillside and land slide area.
Landslide Repair Foundation was initially organized as a non-profit mutual benefit corporation with one shareholder, namely the Eucalyptus Knolls Owners Association. However and because a non-profit organized in that manner would make the proceeds of the settlement taxable by the IRS, the corporation has more recently reorganized as a California non-profit public benefit corporation. Accordingly, the non-profit corporation has been reformed under Internal Revenue Code Section 501(c)(3) with no shareholders.
Landslide Repair Corporation is in the process of developing and implementing a project, hereafter known as the Sycamore Ranchito Landslide Repair Project, to restore and stabilize the landslide area.
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