The Fair Oaks Water District (FOWD) wants to inform our community and ratepayers that another lawsuit has been filed attempting to force your local water agency from the property it has called home since 1979.

On January 27, 2026, local real estate investor Leon Corcos, joined by Keith Walters of the Venture Capital Development Group and representing the Fair Oaks Village Enhancement Corporation, filed a lawsuit challenging Sacramento County’s approval of planned improvements to FOWD’s existing facility in the Fair Oaks Village.

This is not the first time such an action has been taken. In 2025, Leon Corcos filed a similar lawsuit seeking to remove FOWD from this same property. That case was dismissed in the face of FOWD’s motion to dismiss for failure to state a cause of action.

Leon Corcos’s newer lawsuit also fails to state a valid cause of action: like his lawsuit last year, this lawsuit is meritless. Apparently aware of his lawsuit’s lack of merit, Keith Walters has admitted in writing the purpose of the lawsuit is to “pause, challenge, and correct” the Sacramento County Planning Commission’s 2022 approval of FOWD’s corporation yard renovation.

The window to challenge the County’s approval closed nearly four years ago, and the existing corporation yard site is the only parcel in all of Fair Oaks on which FOWD can operate. Leon Corcos’s and Keith Walters’s desired outcome would result in FOWD operating out of Rancho Cordova, leading to slower responses and increased costs to ratepayers – and, under California law, would likely lead to multifamily, low-income housing being constructed in the heart of the Fair Oaks Village.

The County-approved plans do not change how FOWD operates. Our operations at this site have remained largely the same for nearly 50 years, and our presence in the Fair Oaks Village spans more than 100 years. The planned improvements are necessary upgrades that help us operate more efficiently, meet modern standards, and continue providing safe, reliable water service.

Importantly:
• No new industrial uses are being introduced
• No increase in operational activity is planned
• No additional traffic impacts are expected

Based on the analysis above, in 2022 the Sacramento County Planning Commission found the Corporation Yard project will have such a minimal impact on the community that it is exempt from environmental review. 
FOWD General Manager Tom Gray emphasized a key community concern: “All current and planned FOWD facilities include adequate on-site parking for employees and customers. FOWD does not contribute to the parking challenges in the Village, which stem from other developments that were approved without sufficient parking.

​​Your water district takes its role as a neighbor seriously. The goal of these upgrades is not expansion, but responsibility - ensuring that FOWD remains a safe, efficient, and respectful presence in the heart of Fair Oaks.
FOWD is represented by Ted Wolter, a Fair Oaks resident, partner with the law firm Klinedinst PC, and current Chairman of the Sacramento County Fair Oaks Community Planning Advisory Committee. He has stated that, as with the prior lawsuit, this case lacks legal merit and should be dismissed.

“We remain committed to protecting the public resources entrusted to us. Most importantly, we remain focused on serving Fair Oaks with reliable, high-quality water supply at the lowest possible cost - today and for generations to come. Further, we remain committed to treating everyone we encounter with grace and respect, even in litigation” stated FOWD General Manager Tom Gray

Corcos Lawsuit 2:

Corcos Lawsuit 1: