Grow Land and Water v. McCarthy Family Farms CA5

BACKGROUND

In 2006, William Quay Hays started planning a new community to be built along Interstate 5 in Kings County near the Kern County line. His goal was to create a technologically-advanced, sustainable, and environmentally-responsible city of 150,000 residents named Quay Valley. To succeed, Hays needed land with a reliable water source and access to Interstate 5. Hays learned that a developer, Jerry Lowrie, held an option to purchase 1,400 acres along Interstate 5 on which Lowrie planned to build a NASCAR speedway. McCarthy had an option to purchase this property, which was part of a 5,100-acre parcel

2. known as Morris Ranch. The agreement between McCarthy and Lowrie gave Lowrie an option to purchase the property after McCarthy acquired the property pursuant to its own option. Since Hays needed land near Interstate 5 and Lowrie needed money to make his next option payment, they struck a deal to integrate the NASCAR track project into Quay Valley. Hays took over Lowrie’s company and changed its name to KCV. In 2006, KCV and McCarthy entered into an option agreement for the entire 5,100 acres of Morris Ranch. When McCarthy bought the Morris Ranch directly from its owner at…