Can't use Subversion command line client: /usr/local/bin/svn

OS: Mac OS X (10.9.5)

IntelliJ IDEA 14 EAP (139.69.2)

Getting the following error:

11:54:13 AM Can't use Subversion command line client: /usr/local/bin/svn
            Probably the path to Subversion executable is wrong. Fix it. (show balloon)

The path to SVN is correct on my system
$ which svn
/usr/local/bin/svn

$ svn --version
svn, version 1.7.14 (r1542130)
   compiled Sep 12 2014, 05:39:36


Also seeing the following:
Problems while loading file history: svn: warning: cannot set LC_CTYPE locale
            svn: warning: environment variable LANG is C.UTF-8
            svn: warning: please check that your locale name is correct