HomeMy WebLinkAbout20210426Response Letter.pdf-,--i ilr-,1
.,t,ii "-:''li t6 fi}l f, ilfi
- i r,'.-. ". ' a.,
, ': ' : ;, '. il:ji,il;lliCli sz,rh=
CDS StoneRidge Utilities, LLC--SWS
PO Box 298
Blanchard, ID 83804
208437-3148
Sent by Emall:
April23,2021
Ms. TeniCarlock
ldaho Public Utilities Commission
P.O. Box 83720
Boise, lD 83720-0074
RE: (CPCN No. 395) CDS Stoneridge Utilities, LLC, Case No. SWS-W-20-01 Order No. 3469
ln response to the following question regarding the roles of Esprit Enterprises, LLC an ldaho
Corporation, and JD's Resort, lnc, also an ldaho Corporation, in regards to the ownership and
operation of CDS Stoneridge Utilities, LLC. And Stoneridge Golf & Recreation Community.
1. 'Stoneridge must explain to the Commission the apparent ownership discrepancy
wherein J. D's. Resort bought the water system while Esprit Enterprises LLC is the
member or manager of Stoneridge."
Esprit Enterprises, LLC, and JD's Resort, Inc. are both wholly owned by Chan & Teressa
Karupiah.
Esprit Enterprises, LLC acquired all of the assets of Stoneridge Golf Community from CDS
Partners, LLC and several related entities in the fall of 2018.
ln June 2018 JD's Resort, lnc., applied with IPUC for approvalto acquire/operate the CDS
Stoneridge Utilities, LLC. At the time of this application, it was expected that a new separate
operating entity (100o/o controlled by Mr. & Mrs. Karupiah) would be formed to acquire the CDS
Stoneridge Utilities, LLC from Esprit Enterprises, LLC.
During the review process by IPUC of the application process to transfer the water system from
the current owner there was a discussion regarding JD's Resort, lnc. being the applicant and
Esprit Enterprises, LLC being the buyer on the Purchase and Sale Agreement. Esprit
Enterprises, LLC, also bought all of the other assets in the transaction;
JD's Resort did not acquire any of the Stoneridge Golf & Recreation Community assets but did
assume the DEQ loan for the Happy Valley improvements and along with Mr. Karupiah's
personalfinancialguarantee to pledge to support CDS's Stoneridge Utilities, LLC.
Given the financial strength of JD's Resort, !nc. and its long operating history, the Karupiah's
came to believe that it would be best to have JD's Resort, lnc., operate and provide the
necessary financial resources to CDS Stoneridge Utilities, LLC (purchased and currently owned
by Esprit Enterprises, LLC.) rather than create a new *staftup' entity that would lack the financial
strength of JD's Resorts, lnc. They are also aware that a subsequent transfer of interest would
require IPUC review.
At this time, CDS Stoneridge Utilities, LLC is wholly owned by Esprit Enterprises, LLC and is
operated by JD's Resort, !nc.
Please let us know if you have any further questions and comments on this matter.
Sincerely
Becca Loughnan, Administrator
Cc: Chan Karuphi, Steve Durbin