Six months ago the homeowners surrounding River’s Edge Golf Course in Bend were told that the fairways around their homes would be plowed up and turned into a housing development.

This week, the same residents cheered after being informed that a settlement had been reached with the River’s Edge owner to abandon the development plans and preserve the golf course in perpetuity.

According to terms of the deal reviewed by The Bulletin, business owner Wayne Purcell will sell the course to a group of homeowners associations that surrounds the 141-acre golf course. In April, Purcell announced his intention to sell the course and surrounding lands to real estate developer Pahlisch Homes. Homeowners were informed of the settlement via email on Thursday.

“The settlement term sheet that was signed will preserve the River’s Edge Golf course as a playable 18 hole, par 72 golf course in perpetuity,” according to an email sent to homeowners and reviewed by The Bulletin.

The course will be sold to the homeowners for $500,000, according to the email. The price includes all 141 acres of the course, along with the clubhouse, maintenance building, golf carts and other equipment used to operate the course.

The homeowners have 120 days to conduct due diligence related to the acquisition of the golf course, including its past finances and its future economic potential. The homeowners have 30 days to make the purchase following the due-diligence review period, according to the email.

The deal was struck following calls from homeowners to legally block the deal with Pahlisch. According to the new settlement, all litigation will be suspended. If the deal is unsuccessful, the homeowners can resume litigation.

Jeff Kramer, a retired lawyer who lives near the golf course, was the lead plaintiff in the lawsuit. He purchased his home in November 2019 and moved into the house in April 2020, one year before the announced sale of the golf course.

“It’s not done, but it feels very good to be at this stage in the process,” said Kramer. “This is a tremendous result for our community, and I couldn’t be happier about it. We have a lot of work to do over the next few months to make the purchase of the golf course a reality, but I am looking forward to it.”

The email to homeowners stated that a qualified golf course management company would most likely be contracted to run the course operations.

“We believe this is a huge opportunity and we can now be assured that we can protect our beautiful, tranquil setting and preserve the value of our homes as being part of a wonderful golf course community now and into the future,” according to the homeowners associations’ statement.

Pahlisch Homes did not immediately respond to a request for a comment on the matter.

In April, Pahlisch said it intended to build nearly 400 homes on the golf course and keep some areas open for communal space. Purcell planned to retire after the completion of the sale to Pahlisch.

Residents were only made aware of the deal with Pahlisch when it was announced to the public.

The lawsuit that followed arose because residents said they bought their homes based on advertising and other promises they were buying into a golf course community.

By selling homes in a golf course community, the sellers were “obligated” to maintain the golf course, said Kramer.

The lawsuit was filed by five couples in the River’s Edge community. The defendants included Pahlisch Homes Inc. and River’s Edge LLC.

Kramer added that the plaintiffs were “pleased” that the defendants in the suit worked with them to make it possible.

The victory for homeowners comes after a challenging summer that saw a vigorous grassroots campaign to upend the deal.

Residents put signs on their lawns calling for an end to the sale, and “Save the Golf Course!” became a rallying cry in a social media campaign.

“People recognize the value of the golf course to our community, and we are willing to fight to save it,” said Kramer.

Mel Classen, a resident in the River’s Edge area, was pleased with word of the settlement. Had the original real estate deal gone through, homes were scheduled to be built in front of his property and behind.

“As a resident, I am happy, really happy,” said Classen. “We have been going through lawsuits so we have been waiting to see the outcome. After everything got organized it was OK.”

Some opted to avoid the controversy by leaving the River’s Edge area.

“I think (the settlement) is a wonderful thing. Unfortunately, we moved, not being able to live with the uncertainty,” said Rachel Cohen, a former resident of the area. “We moved elsewhere in Bend and sold our house for less than it would sell for today. But it was the right decision for us.”