DIABLO GRANDE – A spokesman for the company which contracts to operate Diablo Grande’s water treatment plant said this week that the financially-troubled resort has agreed to sign off on a long-term arrangement to resolve an outstanding debt.

Veolia Water North America had put Western Hills Water District on notice that it had until March 1 to resolve what it contends was a $3 million debt owed for construction and operation of the community’s water treatment facility.

Diablo Grande officials manage the water district which serves the upscale community.

Shilen Patel, western region marketing communications manager for Veolia, said Western Hills Water District officials have notified the company that they will sign the agreement before March 1.

That arrangement reduces the water district’s up-front financial burden, Patel commented.

“We are looking forward to continuing to serve the Diablo Grande community,” he stated. Financial problems at the resort community, which is listed for sale and has reportedly attracted interest from prospective buyers, have come to the forefront in recent weeks.

Before the water issue surfaced, Diablo Grande closed its two well-known golf courses for an indefinite period of time.