I-Team Exclusive: New legal battle emerges in Saddlerock Estates land lease controversy

A major development in an I-Team investigation that has been rocking a Palm Springs community. Legal action is now being taken against the tribal landowner of Saddlerock Estates, on behalf of dozens of homeowners who say they fear losing their homes.

I-Team investigator Peter Daut spoke with the attorney leading the challenge, which now moves the battle to Washington, D.C.

It all centers around the master lease created more than 50 years ago. The management company Hallview is a co-signer of the agreement, which covers Saddlerock Estates and two other Palm Springs communities on tribal land.

Hallview has now filed a formal appeal with the U.S. Bureau of Indian Affairs, arguing the tribal landowner William McGlamary violated the master lease by negotiating directly with homeowners and excluding Hallview from the process.

As News Channel 3 reported, the proposed renewal at Saddlerock Estates would more than double montly land rent, and require a $100,000 signing fee, plus $15,000 in attorneys fees per home.

Homeowners were given just a few months to decide. If they did not sign, their current lease would expire in 16 years, and they would have to walk away from their homes with no compensation.

McGlamary's attorney, David Jacobs, has previously told News Channel 3 that the original lease locked in below-market rent for decades, and claims the HOA walked away from negotiations for years. But Hallview's attorney, Cang Le, argues the landowner could not legally bypass the company because individual subleases were signed with Hallview, not directly with the landowner. Le claims the master lease required negotiations to go through Hallview, and accuses the landowner of sidestepping that agreement by rushing it through without giving proper notice and using scare tactics to try to coerce homeowners into signing.

"We had clearly defined terms. And if you don't like those terms you can't unilaterally just change those terms on your own as a landowner. You're a party to an agreement with Hallview, and if you don't think the terms are fair and reasonable and up to market conditions then you negotiate. You negotiate in good faith, and you figure out a means to adjust those terms," Le said. Daut then asked him, "So what you're saying is the tribal landowner should have worked with Hallview in coming up with this lease renewal offer?" Le responded, "Correct, because what he's doing is effectively changing the terms of the original agreement between Hallview or the party to that master lease and the landowner."

Daut then asked, "So when Hallview found out about this lease renewal offer, what was the reaction?" Le responded, "We were never officially notified about it. And it was only from the residents coming to the other residents and saying, 'Hey did you get this letter? What did you think of this letter?' That's how it came about, where homeowner were like, 'Oh my god I have to pay $100,000 to continue living here, plus additional rent or I lose my house?' It was such a scare tactic and pushed through so quickly that Hallview had barely time to react."

Daut reached out to attorney David Jacobs about Hallview's appeal, and what the company is alleging. Jacobs replied he "has no comment at this time."

Daut also contacted the Bureau of Indian Affairs and the Agua Caliente Band of Cahuilla Indians. Neither responded.

A decision from the BIA could take months. In the meantime, legal uncertainty continues for dozens of homeowners.

News channel 3 will continue to follow this story and provide any updates.