The Dirt Report

Is First Solar Inc., the Parent of Antelope Valley’s Solar projects: Willow Springs, AVSolar Rancho One and EdisonMission Energy in financial trouble?

2012-01-16T14:28:00.000-08:00

According to Investing Daily and other news sources First Solar lowered its sales forecast. First Solar said it now expects sales of $2.8 billion to $2.9 billion on the year, down from its previous estimate of $3.0 billion to $3.3 billion. The company also said it will lay off about 100 workers, or roughly 1.5% of its workforce.
There stock was at a high in 2008 at 300 a share to now under $40 a share. Other stock watchers have indicated that the Chinese are making less expensive solar panel chips, so First Solar intends to get out of the roof panel business part of solar. The Chinese production is highly automated and the factories are subsidized.
Other solar companies have gone bankrupt such as Fremont, Ca. Solyndra and Massachusetts based Evergreen Solar.
First Solar’s press release, Mike Ahearn, the company’s chairman and interim CEO, alluded to subsidy cuts when he said the company was recalibrating its business “to focus on building and serving sustainable markets rather than pursuing subsidized markets.”
First Solar is not in the same situation as Solyndra as Solyndra was backed by US Government loans. Evergreen Solar situation is also different. Evergreen was selling primarily solar panels. Solar panel prices dropped worldwide and Evergreen was losing money on every panel it made. That is a reason why First Solar is getting out of the panel business.
We will be keeping tabs on First Solar’s progress and it has become a pivotal part of the landscape in Antelope Valley.

The Train, the train is Coming to the Central Valley by Fall 2013

2012-01-03T07:58:00.000-08:00

The state has secured $3.9 billion in federal money, and California taxpayers have approved bonds for the rest. Construction is actually set to start by late next year on the first leg between Bakersfield and Fresno at an estimated cost of $5.8 billion. If construction begins then the project will likely be the largest in the Union with California and the Federal government on the hook for billions of dollars in future costs.

It is not likely to go smoothly though. The estimated costs have essentially doubled with right of way issues as the train will move into urban areas. Also the state and federal governments are currently running deficits and the private sector is not all in, so finding future funds could get murky. It also looks like California voters are a little flakey. Recent polls showing voters would not have voted for the train if the vote was today.

Democrats have indicated that clogged highways are smog choking their districts, so a train system is necessary. Republicans indicate that Amtrak is not in full use, so a high priced fast train is not a solution. A big problem maybe in Palo Alto, Ca. where democrats have riled against new rail lines passing through neighborhoods.

There is indication that at least another $20 billion will be needed, so the alternative to the lack of funds will be that if the speed train fails then Amtrak will run along the new tracks. The initial stage is the Fresno to Bakersfield route and the next stage would link the San Joaquin Valley to San Jose or Bakersfield to San Fernando (Los Angeles County

The State will need funds past the Fresno to Bakersfield plan though, but despite the backlash the Cal-High-Speed Rail Authority is moving forward. They have the initial money and they plan on laying the tracks. The current administration is behind the effort, and the Rail Authority feels private money will be invested once the project has started. If you own land at or near the Fresno to Bakersfield route then you stand to profit. Buy land and wait, and buy land in the path of development still holds true.

Failed Exchanges – Safe Harbor and Options

2011-12-13T10:48:00.000-08:00

We found information regarding 1031 exchanges and tax obligations on an exchange between two calendar years. Typically we have found that the Internal Revenue Service ("IRS") will not challenge or disqualify a 1031 Exchange transaction as long as the investor has followed the Safe Harbor provisions or guidelines provided by the Treasury Regulations. What this means is to use a qualified 1031 intermediary who will hold the sales proceeds until a like kind property is located, so the sale proceeds never actually reached your account. If you do a 1031 by yourself and receive the funds from the sold property then you still may have an option on when to account for the taxes.

If an exchange fails, funds are returned to the investor and taxes are owed. But if a failed exchange runs over two different calendar years, investors may have an option on when to pay taxes. Let’s say the sold property closes escrow on December 1, 2011 and as of the 45th day of the exchange, the investor has not found a replacement property so the the exchange is now cancelled. The sale proceeds from the sold property must then be returned to the investor in January 2012 whic is the 46th day of the exchange. The investor has the option to recognize the tax liability either in 2011 or 2012. The investor sold the property in 2011, but they had the right to the benefit in 2012. The investor should contact their accountant for the best option, but this scenario does provide such an option.

First Solar Inc. Teaming Up With NRG Energy on Alpine Solar Project in Lancaster, Ca.

2011-12-01T07:44:00.000-08:00

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NRG Solar, is building the 66 megawatt (MW) Alpine Solar Project in Lancaster, Ca. and it will be the first large scale project built in LA County, and the largest photovoltaic facility in the State of California. First Solar will handle the construction, operation and maintenance services. The electricity from this project will be bought over a 20 year purchases agreement with PG&E. The expectation is that 250 jobs will be created in the construction phase, and it plans to begin by the end of 2011 and complete by 2012.
According to numerous news sources and press releases this project will be on disturbed land which means mainly previously farmed land. It will also be near a SoCal Edison electric distribution system. Based on the description it looks to be in Antelope Valley’s west side perhaps somewhere near AVSolarRanchOne or Tuusso Energy’s site.
Once we know more about this sites location we will post it here.

The Southern California Water Solution Maybe in the Desert, Which Could Increase the Price of your Investment Land

2011-11-15T08:44:00.000-08:00

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The original article was reported by Noaki Schwartz and Garance Burke of the Associated Press.

In the Mojave Desert east of Needles, Ca. in San Bernardino County is a place called Cadiz, Ca. It seems more like a location for a Clint Eastwood western as it is a desolate dry hot desert, but there maybe an oasis of water here just south of route 66. According to reports this oasis has tall green trees with lemons, and grape vines awaiting harvest.

A private water company indicates beneath the 35,000 acres Cadiz ranch is an aquifer with enough water for 400,000 homes. They indicate that this water comes originally from springs above in the Desert Mountains and settles in Cadiz and eventually resurfaces in dusty lake beds dozens of miles away where it evaporates in the hot desert.
A proposal to tap this water supply was rejected several years ago, but their new plan is to drill thirty four wells, and then pipe the water along the railroad line that currently exits.

Environmentalists say that this will impact the desert tortoise, bighorn sheep, Joshua trees and other plants and animals. Conversationalists say the aquifer is not as large as the company indicates, and even others say removing so much water annually will not allow the aquifer to recharge itself with limited annual rainfall. The debate will continue, but to us if the water is simply evaporating then a balance between man and nature maybe able to be made. Former Gov. Arnold Schwarzenegger has called the proposal "a path-breaking, new, sustainable groundwater conservation and storage project," when the prior proposal was made years ago.

According to the Associated Press, since 2010, the Santa Margarita Water District, Three Valleys Water District, Golden State Water Company, Suburban Water Systems and Jurupa Community Services District entered into agreements with Cadiz to receive water. These agencies supply water to parts of Los Angeles County, Orange County, Riverside County and eastern San Gabriel Valley.

Now 400,000 homes will only serve a fraction of the water needs of Southern California, but it is enough to serve Lancaster and Palmdale, Ca. or Victorville’s current populations. We will see if the recent proposal will gather enough steam to flow water down to the Antelope Valley and onto farmland and homes instead of evaporating into dry air. Certainly, a future water solution will allow the High Desert areas to grow much like Arizona has.

General Probate Procedure for Real Property in California

2011-11-01T09:17:00.000-07:00

An estate of less than $100,000 which doesn’t include real property (real estate) can be done as a mini-probate. According to attorney’s we are familiar with, it simply needs an affidavit of death, and a declaration with a description of the assets.

A Probate proceeding is necessary whenever a decease person has left assets which have not been placed in a trust or a joint tenancy before death. An estate value of less than $100,000 doesn’t have to go through a full probate proceeding. Also if the real estate is under $100,000 there is a special "small estates" procedure that heirs can use under California probate code section 13151. A full probate can take seven months or more and use up capital in legal fees, and court costs. A small probate would take two months and can be done for $1500 to $2500 with most attorneys in California. It can be a little different when assets include real estate.
In Real Estate Probate, If the property is appraised as having a value of less than $20,000 it can be taken by affidavit, which can even be done without an attorney. However, as recommended by attorneys, if the estate is worth less than $100,000 and the real property is worth more than $20,000, you will need to petition the court. If you choose to tackle a probate on your own in order to save the $1500 to $2500 legal and court fees then you may need to get into some reading such as How to Probate an Estate in California by Julia Nissley. It does come recommended via online book stores. Typically asking questions of court clerks will likely get a reply of “I can’t tell you, I am not the Judge”. Also, forget about seeing the judge.
You can likely save yourself anguish and heartache by seeking the advice of an attorney, so you essentially get a third party to handle your family affairs. We do recommend that you handle the probate as soon as possible. If you wait until you get an offer on your property it will takes months to complete the probate and the buyer may move onto other opportunities.

Reverse 1031 Exchange: To Buy Before you Sell

2011-10-12T07:18:00.000-07:00

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In a standard 1031 Exchange a property is sold and then replacement property is acquired. If you locate a property you want but have not sold a property you currently own then a reverse 1031 could be advantageous. This is not a common in practice but has been done by investors. Some common reasons to do a reverse exchange is you have located a property you want based on price, location, zoning or other reason, but you need to act now in order to buy this property. Not a problem simple purchase this new property and begin the process of a reverse 1031 exchange.

Another reason is that many investors have been caught in the middle by not locating an exchange property in the 45 days to identify and 180 days to close timeframe. Locking up that exchange property in advance solve this dilemma for investors, and it may be easier for you to sell your current property than to locate a replacement property. In a slow real estate market it actually maybe harder to sell your current property and easier to get the replacement, especially, if the replacement property is at a low price and ideal location.

Acquiring replacement property first in a Reverse 1031 Exchange can cause some difficulties though. Since you have not sold your current property then you need the deposit funds for the new property. The biggest obstacle is that the two properties can’t be owned at the same time. In theory, an exchange is going from one property to another, so title to the new property and the old property can not be held at the same time. You will need to get a Reverse Exchange Asset Company to act as a straw buyer for the replacement property. You still must adhere to the 45 and 180 day rule as well.
So in a Reverse Exchange the property that will be sold to complete the exchange must be named by day 45 and it must close escrow on or before day 180.

Locating a reputable 1031 exchange company is the key in this manner, as they will act as the straw buyer. We at vacantlanddeals.com have a number of low priced properties that will be ideal buying opportunities. You can buy one of our industrial or residential low priced properties and sell your agricultural land parcels that you may have bought at the height of the market. It is an ideal time to take advantage of lower price Lancaster and Palmdale land, and we have inventory currently that can fit a reverse 1031 exchange.

US Topco Energy Inc. of Taiwan Furthers Solar Relationship with the City of Lancaster

2011-10-02T12:45:00.000-07:00

The city of Lancaster press release earlier this summer regarding the Topco partnership where Mayor R. Rex Parris remarked “Great partnerships such as these are vital as Lancaster strives to further our goal of becoming the solar energy capital of the world.”

According the city of Lancaster press releases and AVPress earlier this year, Lancaster residents consume an estimated 200 million kilowatt-hours of electrical power a year. City Council members approved an original memorandum of understanding with TopCo Energy for a photovoltaic solar power plant on April 12. That original agreement was aimed at developing one or more photovoltaic solar power plants "capable of generating at least 50 megawatts of electrical power," city officials reported.
The amended agreement signed in July increases the size from 50 megawatts "to a total aggregate of up to 200 megawatts of electrical power." The goal of Lancaster is to become a net-zero energy city, so partnerships like this with Topco will further enable that goal. Through agreements like this the city of Lancaster will generate more power than they need and so can resell excess power to Southern California Edison for regional consumption.

According to Us Topco Energy Inc. website they produce a line of service that includes the planning and establishment of solar power plants ranging from 500kW to 50mW to various new and retrofit commercial and residential constructions. Topco is at least one of twelve solar companies that are using the power of the sun in Lancaster and Antelope Valley to establish solar facilities for the production of energy for the region and state.

In our opinion this is all good news to the land investor as the cities of Lancaster and Palmdale will not only grow with urban growth with the continual population explosion in this region. They can also continue to grow economically with the power of the sun and wind in the region. The city of Lancaster should be commended for taking advantage of new solar technology and the large amount of vacant land and open space. Investors should take advantage of this growth and invest in Antelope Valley land as its future is on the rise, while the stock market is on the wane. Contact VacantLandDeals.com today and invest if low risk land banking.

Buying Low and Selling High in the California Land Market

2011-09-20T09:41:00.000-07:00

Our headline is common knowledge on how to be profitable in any trading business from stocks, bonds, real estate and even pawn shops. We think it is not common enough in real estate. The recently burst real estate bubble was the highest percentage wise drop in value the last twenty years. Nobody knows where the top or the bottom of any market will be, but the clear signs are when demand outstrips supply. Essentially when it is a sellers market it is not conducive for long term profits for the buyer, especially when there are ten or more offers on the same property. We recall back in 2006 when one fairly modest home had thirty offers within the first week. Housing wasn’t necessarily scarce, but loans were too abundant. It is easy to see the bubble after it pops, but how can you buy at the lower end of the market? When it is the right time to buy? Most people shop for consumer goods when there is a sale. The merchant has too much inventory and they need to make room for new products. You can look at it the same way in buying land or a home.

Ideal ways to buy low priced California land is via a probate sale, bankruptcy, foreclosure, or even short sales. Many of these types of sales are found on the MLS (multiple listing services) as it is the main way for lenders, banks, courts, lawyers and brokers to broadly promote the property. By law government agencies and licensed professionals must market property to the widest public. You can also locate these court filings at your local court house. They are all within the public record. It will take some research and time, but it can be fruitful. The time and effort to research and buy at these court ordered sales maybe too time consuming, so you can look for firms that resell these properties. We at vacantlanddeals.com also buy land via probate and bankruptcy sales. We buy as low as possible, and resell at low retail costs. We currently have a number of properties that are priced at the low end of the market on our website www.vacantlanddeals.com The land prices today are some of the lowest prices in the last fifteen years. Real Estate is very cyclical, so be prudent and buy at the low end of the cycle.

First Solar’s AVSolarRanchOne to begin Construction near Lancaster, Ca. Albeit some Objections

2011-09-01T09:22:00.000-07:00

Excerpts from Patric Hedlund The Mountain Enterprise

Forbes Magazine has named First Solar the fastest growing technology company for two years running. First Solar is an $11 billion corporation, and it has a large operation proposed in Antelope Valley’s Fairmount Butte. They have a $215 federal incentive to commence building AVSolarRanchOne by September 1. It will be a 230 megawatt system on 2100 acres and employ 300 during the construction faze.

According to the Mountain Enterprise news reports as of August 1st First Solar’s AV RanchOne has received final discretionary permits which allow them to mobilize for construction. Mobilization primarily consists of bringing temporary facilities and infrastructure onto the site (temporary construction offices and utilities) to support the start of construction. With this permitting approval, they are released to begin mobilization at any time. They expect to commence construction activities by the September decline.

Yet, there is resistance and obstruction from residences and government agencies. The resistance from local residents in Antelope Valley is primarily that they have not been fully informed. There was even a threat to file a restraining order to stop construction, but that was tabled. There is similar objection in Tehachapi, Ca to the Alta Wind Energy Center in Tehachapi, Ca. as there will be thousands of wind towers going up in the next year. There are approximately 2000 residents in Fairmount Butt area which is about 15 mile west of Lancaster, Ca. yet they have a voice to in this large solar facility construction. Additionally, there is a proposal by Riverside County Supervisor John Benoit to introduce a two percent franchise fee for First Solar installation planned in Riverside County and that motion is pending. It could produce revenues of $3.5 million a year for Riverside County. There are indications from First Solar that they would not agree to pay that fee.

Most Californian’s would agree that alternative energy is essential for the State’s future growth and energy needs, but nobody wants a facility in their neighborhood. We think the project will prevail despite objections, and potential additional government taxes. This will invariably increase vacant land property values in the long term, as solar site assume a large amount of property. Buying low in this current market and holding long term for future growth is still a sound business and personal investment. Go to vacantlanddeals.com for land opportunities.

Tehachapi California Wind Energy Explosion and Conflict with Property Owners

2011-08-11T11:08:00.000-07:00

Excerpt of article from Tiffany Hsu, Los Angeles Times

Wind Turbines are multiplying at an immense pace as wind developers expand, because of the high winds that thrust through the Tehachapi Mountain range. Kern County has the highest concentration of wind farms in the nation at this point eclipsing the Altamont pass in Northern California.

Terra-Gen Power is planning hundreds and maybe thousands of wind turbines for its Alta Wind Energy Center, while, Helo Energy is planning to build 450 wind turbines. This green energy expansion is creating resistance from local residents. There are thousands of wind turbines today in the Tehachapi Valley already. They currently dominate the landscape, so thousands of additional towers will continue to change the views.

There are a number of activist groups galvanizing to try to halt the expansion. They complain of the issues with potential land erosion because of the removal of trees, the environmental impact to bird life. It is the never ending loss of beautiful views that the area is known for. It is a similar complaint of any rural destruction; we want development, but not here. According to the LA Times article by year’s end $2.2 billion will be put into the Kern County economy and the Alta Project will inject $30 million in taxes. Those are jobs the area does want, and revenues for the county and state governments.

We feel for the local residents as there community has changed and will continue to do so. There home prices may also be affected, as less people will want to live in the area. This area is full of rolling hills and mountains, with ranches and livestock grazing. It certainly is an ideal area for wind energy productions as the terrain creates a natural and continual gust of free energy. Land owners have benefited greatly as they can lease their ranch land and it still allows cattle to graze. Most of this area has been unused rural and vacant land, but no more.

There is a give and take with development, and in this case green development. We don’t think the locals will win, as the California’s State government is fully behind it. Governor Schwarzenegger signed executive order S-21-09 under AB32 giving authority to the bill to enforce 33% of the States energy to come from renewable sources. Senate Bill X1-2 signed by Governor Brown codified 33% by 2020.

This infusion of over 2 billion in development, jobs and Kern County tax revenue is a green boom to the area. It also shows that buying land and waiting for development even in rural areas like Tehachapi can be a profitable venture.

BYD Ltd Electric’s Technology for Los Angeles County and Lancaster California’s Jobs Future

2011-08-01T07:35:00.000-07:00

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The city of Lancaster and BYD (Build Your Dreams) has been in discussion since early last year for a potential electric car manufacturing plant in Lancaster Ca. The city sent a delegation to China for that purpose in 2010. BYD manufactures an electric crossover vehicle called the e6 electric and said it expected to start selling the car in the U.S. The city of Lancaster would like BYD to manufacture and assemble this vehicle and others in Antelope Valley. Also, during the Schwarzenegger administration there was talk of the city of Los Angeles pledging to buy BYD manufactured electric buses if the plant was based in LA County. BYD has yet to make any formal announcements regarding their plans. Although, they have established a US headquarters in the city of Los Angeles, and expect up to 2000 employees over time to administer their US operations in their downtown Los Angeles location.
They further set up roots by establishing a collaborative partnership to develop a grid-scale battery project for renewable energy storage with the Los Angeles Department of Water and Power (LADWP) last year. Also, about a year ago the City of Lancaster, BYD and KB Home announced the completion of a new earth-friendly prototype home utilizing BYD’s solar, battery and LED Lighting systems. The plan is to potentially lead to more affordable solar electricity and energy storage options for homeowners. The city accelerated the development process through the planning department, so KB and BYD could construct the prototype home immediately. The manufacturing and assembly of electric cars and buses would certainly be a boom for the city of Lancaster and Los Angeles County; as such a move would create jobs and future growth to a city that was damaged by the housing crisis.
BYD was founded by Wang Chuan-Fu in 1995 in Shenzhen, China. He is a chemist and part of the Chinese Dream as he raised $300,000 from relatives to manufacture rechargeable batteries. Since then BYD has become one of the world’s largest manufacturers of cell-phone batteries. They have also raised $250 million from Warren Buffet toward their e6 vehicle. They plan on manufacturing 800,000 e6 cars powered by lithium-ion batteries, where they indicate they intend to start selling the e6 in the US at a price of about $40,000.
In addition they have established a solar cell and solar panel technology, where they would like to establish their solar systems in combination with large energy storage systems that they currently develop. Based on news reports they plan on moving rapidly in developing and expanding in the solar panel arena. This relationship with the city of Lancaster works well as solar is expanding in the valley and Mayor Parrish projects that Lancaster will produce more energy than it consumes with its solar expansion.

We will wait and see if BYD expands manufacturing in the Antelope Valley, but the prospect looks promising for real estate and land values if the projects develop here.

Land Banking with a California Land Contract

2011-07-12T15:41:00.000-07:00

Land Banking is a term used by land investors. It essentially means to buy land and hold it for a period of time for a long term gain. It is the same as holding a stock or security for a long period of time. Simply buy land, hold and wait to see what future growth patterns do to its market value.
A land contract is a simple contract between a buyer and seller to purchase real property. It doesn’t even have to be land. It can also be known as an installment sale agreement. It is an agreement between a seller and buyer whereby the seller provides financing to sell the property for an agreed purchase price and the buyer repays the loan in monthly installments. It is much like a typical mortgage agreement, but there isn’t a financial institution involved and there are only two parties in this transaction. Under a land contract, the seller retains the legal title to the property, yet allowing the buyer to take possession of it other than legal ownership. As an example, if a buyer pays $9,000 for a parcel with 10% down payment of $900 and then finances $8200 at 7% interest approximately $228.02 in installment payments a month over 3 years. The seller is providing a short term loan to the buyer. The seller holds legal title to the land until the loan is paid in full. After the full purchase price has been paid including interest, the seller will convey title to the property to the buyer, and record the deed with the recorder's office. If the buyer defaults on their installment payments then typically the land contract would consider this a failure to pay, and the buyer would be in breach of contract. In a failure to pay any equity earned by the buyer would return to the seller. The seller would retain all of the buyer’s payments and interest.
Land contracts are different than the typical real estate contracts, because in a land contract the seller is providing a loan to the buyer (short term seller financing). In a standard real estate contract, if there is a loan then the loan is handled by the third party lender who administers the payments after escrow closes. If a third party lender is involved then a lien (mortgage) or trust deed would be recorded on the property.
This is an easy way for a buyer to limit their risk in buying land if they don’t have the full cash amount in order to buy a property. It is also more cost effective and offers security to the seller as they will not have to foreclose on the property. We are offering land contracts on our smaller parcels, so it allows land buyers to invest in real estate with less capital and risk for tomorrow’s reward. We also think banking on your future with real estate still remains one of the best means to secure your retirement, or long term needs. With today’s low bank interest rates investing in land is a far better alternative.

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New Highway from Los Angeles County to San Bernardino County Would Increase Land Values on Antelope Valley’s East Side

2011-07-01T08:06:00.000-07:00

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There has been a proposal for a High Desert Corridor Highway (E 220) of approximately sixty three miles from Hwy 15 (SR-18) in San Bernardino to Palmdale Ca. (SR-14). This will greatly enhance access between the two major cities of Palmdale and Victorville, Ca. as the current thru road is Hwy 138 which is a two lane road. The High Desert Corridor Joint Power Authority (HDCJPA) is administering the project and it is currently in the environmental phase. The HDC will construct this new 60 mile east west expressway and likely a truck toll facility between Los Angeles and San Bernardino counties within the decade. The highway segment would be an eight lane freeway and it includes a High Occupancy Vehicle (HOV) lane in each direction from SR-14 past the Palmdale Airport to 50th St East along an alignment paralleling Ave P-8 in Palmdale, Ca. It may have to drop to Ave Q to pass Lake Los Angeles and reconnect to P-8 once near Palmdale. Most of the land along Ave P-8 is open space without any road access. It also looks like it will run north south along 50th street East up to Ave E and then run to Ave D (Hwy 138) west of Hwy 14. The exact details of the road route are not totally specific on the land targeted. It may still be under review while the environmental phase continues. In 2009, the Metro Board approved $500,000 for the HDCJPA to support the agency’s efforts. Measure R provided $33 million for environmental clearance. The City of Victorville received an $800,000 federal earmark which was transferred to the HDCJPA for the project. These funds will be used for the environmental clearance. The environmental clearance phase is scheduled to be completed by 2013 and construction completed by 2020. It looks like they will need additional funds for the construction phase.

An eight lane expressway will need to take a considerable amount of space along Ave P8 where land values are at there ten year lows. There are also opportunities along Ave E between Hwy 14 and 50th Street East. The project is not fully approved and technically it has not begun but buying land on the far-east side along this freeway route looks like a good long term investment in our opinion. As buying low priced land and holding it for long term investment is the essence of land banking. Even if the proposed route changes the land prices on Antelope Valley’s east side are currently very low. If you are interested in low price land opportunities then contact us for potential land banking acquisitions.

Senate Bill 676 Will Allow Kern County Farmers to Grow Industrial Hemp on their Land

2011-06-17T08:40:00.000-07:00

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Industrial Hemp has made its way back on the agenda in Sacramento with SB 676 proposed by Mark Leno the San Francisco/Marin County State Senator. It is the California Industrial Hemp Farming Act of 2011. Similar bills were vetoed by previous Governor Schwartzenegger. The bill establishes a five county pilot project for growing Industrial Hemp. The Counties which will be allowed to grow hemp if this bill passes are Imperial, Kern, Kings, San Joaquin and Yolo Counties.

Industrial Hemp has a variety of uses from clothing, foods (breads, energy bars, etc.), health, beauty products, and paper products. Tens of thousands of products use hemp. The bill states that only these counties can grow industrial hemp with 5 acres minimum, and with no upper acreage limit. It must be for agricultural use or research. Farmers must test the hemp for THC content and destroy crops with an excessive THC count. Industrial Hemp looks like the narcotic marijuana plant, but it has very low levels of THC. Thus its used only for industrial purposes. There are other regulations in order to not disguise Hemp with the Marijuana version such as no clandestine or backyard growing will be allowed.

Federal Law enforced by the DEA (Drug Enforcement Administration) prohibited the growing and cultivation of Industrial Hemp, as the DEA regarded Industrial Hemp as a controlled substance like Marijuana. The DEA’s claim was recently over-ruled by the 9th Circuit Court of Appeals in 2004 as the court stipulated that the DEA has no authority over the 1970 Controlled Substance Act. Farmers were allowed to grow hemp but the extra security, fencing, and DEA regulation were cost prohibited.

Here are some positive facts regarding hemp versus tree paper. Hemp paper doesn’t require toxic bleaching chemicals. It can be whitened with hydrogen peroxide, which doesn’t poison waterways as chloride and bleach do with the chemicals used in making wood pulp paper. Hemp paper can be recycled 7 to 8 times, compared with only 3 times for wood pulp paper. An acre of hemp produces as much paper as four acres of trees annually. It requires little or no pesticides or herbicides and produces two to four times more fiber than an acre of timber. It grows rapidly and can be harvested every 90 days and it is an ideal rotational crop. It also continues with the going green viewpoint of California as many trees will be saved. This “new” product will create jobs for Antelope Valley.

This may be a great opportunity for Kern County land owners as this would be a beginning of a need for available land. If this project succeeds then Antelope Valley may also be allowed to grow hemp as most of the available land in agricultural land, and it would be an ideal location. This “new” product will also create jobs for Antelope Valley.

Alas More Funds for The Cal High Speed Rail, But Will it Stop in Palmdale?

2011-06-01T11:25:00.000-07:00

In 2008 voters approved nearly $10 billion in state bonds to fund the Cal High Speed Rail project under Proposition 1A and now this past month Transportation Secretary Ray LaHood took Florida’s $2 billion and gave it to 15 states and Amtrak. Florida’s new governor and legislator rejected their high speed rail, California gets a new $300 million which will be used to continue laying the groundwork for the nation’s first 220 mph high speed rail system in the state. The initial plan according to federal and Rail officials would be to run along the Central Valley as it would be the least expensive to begin. This is an essential part of the Obama Administrations proposed shovel ready projects. Thus the lion’s share of the $3.5 billion provided by the Obama administration must be spent on the rail line running between the tiny towns of Borden and Corcoran, Ca. Borden is outside of Merced and Corcoran is next to nowhere and is best known for its prison.
This can be chalked up to California’s continual poor planning as the CalHighSpeedRail Authority indicated earlier that there will be no ridership on the first phase. We believe they guarantee that with starting in sparsely populated Borden and Corcoran. Another issue that bogs the speedy trains is the disagreement with running the train from Bakersfield to Los Angeles via Lancaster and Palmdale Ca. Many including the LA Times writers want the direct route via Hwy 5 through the grapevine. They indicate it will save $1billion, and 30 miles. Yet, isn’t the trains objective to carry passengers? Bypassing Palmdale would eliminate potentially 700 thousand potential riders in Palmdale, Lancaster and Victorville. If the train is not potentially a commuter train, then why build it in urban areas like San Diego, LA, and San Jose, or it is only a train to compete with SouthWest airlines?
The final southern route into LA County will be debated, but there looks to be plenty of new opportunities along Hwy 99 as the White House and Governor Brown administration will not stand in the way of this moving train. Will it be a sign of more government waste by Democratic administrations, or a future jewel of the West U.S. Most land along Hwy 99 is farmland as we have been saying all along the farmers are the best long term land bankers over time. Check out our land along the future potential route in Lancaster Ca. via www.vacantlanddeals.com so you can be a land banker too.

How to Diversify Investments by Rolling Over or Transferring an IRA/401k into California Land Investment?

2011-05-15T11:53:00.000-07:00

Most IRA’s and 401k are invested in stocks and bonds, but many are not aware that you can invest the money that you have in your IRA or 401K into land investment. This also includes investments such as other real estate, precious metals, and commodities.
You can simply do this by rolling your current IRA and/or 401K account into a new "Self Directed IRA" account at no major cost to you. You will also retain the tax deferred status without penalties as you have not cashed out your investment. The Self Directed IRA Company will do most of the work for you, but the stock brokerage may work to attempt to retain you as their customer.
Part of the reason a Self Directed IRA is more valuable is that it provides more control and choices. This control provides you the ability to invest in land, or precious metals like gold and silver which all are hedges against inflation. If you speak to a gold or silver investment company they typically suggest a five year hold in those precious metals. In addition, land investment companies also suggest a five year or longer hold. Longer term holds depends on the location of your land investment (distance from development), and your future retirement horizon goals.
There is a difference between and transfer and a rollover. When implementing a transfer your IRA assets are moved directly from one financial institution (typically a brokerage) to another without the IRA owner actually taking possession of the assets. An IRA transfer avoids any possible tax liabilities that could occur by taking possession of your IRA/401K funds, while a rollover occurs when an individual requests a distribution from an IRA or a Qualified Retirement Plan. Your investment firm would then roll the funds into the Self Directed IRA. According to IRA laws you are allowed only one roll-over in any 12 month period. Of the three types of rollovers a Qualified Retirement Plan Direct rollover is not treated under this 12 month rule, while the other two rollovers IRA roll over and a Qualified Retirement Plan rollover are.
An IRA Rollover occurs when an individual has personally taken the distribution of funds from their IRA. You then have 60 days to rollover the distribution into another IRA. If this is not completed in the 60 day period you would be subject to a 10% tax penalty.
The process begins by your establishment of a self directed IRA account. You then initiate the transfer with a transfer form provided by your current IRA holding custodial.
You then designate the new self directed IRA custodial and they receive your funds as the new custodial. You don’t have to transfer your entire IRA/401k but just as much as you need for the new investment.
Your new self directed IRA is now available to receive California land investment. VacantLandDeals specializes in low priced and low capital land investment opportunities. They have land near development typically with ideal zoning in the path of growth for future urban development providing your exit strategy in five to fifteen years. VacantLandDeals also specializes in investment capital under $50k and some investments fewer than twenty thousand, so the low capital and low risk investment has the opportunity to mature. Go to http://www.vacantlanddeals.com/lands-for-sale/ to review an investment opportunity.

Beautiful Earth Group Breaks Ground in the City of Lancaster Ca. as Another Alternative Energy Company Turns Rural Land into Developed Land

2011-05-02T07:47:00.000-07:00

(photoFlckr)
The City of Lancaster, Ca. continues to move alternative energy projects forward in their quest to be the Green Capital of California and the nation. Recently The City Council gave initial approval for a new solar energy project proposed by a New York firm Beautiful Earth Group at 90th West at H on 180 acres of land on the west side of the city in Del Sur. The Del Sur Solar site looks to be from 80th West to 90th West along Ave H in an L shape form and the narrow portion of the L from 80th to 85th W down to H-8. The city has already approved the Tuusso High Desert Solar project that will generate 20 megawatts of power after completion next year at 100th West at H. The other two solar sites within the city limits are Sunlight Partners and E-solar which we have referred to before.
Beautiful Earth Group is a Brooklyn NY Non-profit firm focused on developing wind power and solar energy facilities for utility companies and government and commercial users. They indicated to the press that they targeted this location as it was on previously disturbed land “farmed land” so eliminating its environmental impact. They also use less water than the steam generating solar facilities. This project will compose of two 19 mega-watt facilities and will generate energy to power 10,000 homes. The city’s planning department last November approved changes to the general plan and zoning to allow this Beautiful Earth project to move forward. The site is also situated next to a large SoCal Edison Substation at 90th West at H. Press releases indicate that the company is still in the process of getting power purchasing agreements from Edison. But the city of Lancaster is creating opportunities and fast tracking permits in order to facilitate green energy technology within current city limits.
What does this mean for a land investor? Well it shows that large portions of city and county land have been bought for developers other than residential and typical commercial developers. Although there is a great deal of land available in the Antelope Valley these solar and wind turbine sites take up a good portion of available land. The real estate growth in Southern California is in Antelope Valley, as fewer homes are being built here and elsewhere, but alternative energy firms Beautiful Earth, E-solar, First Solar Inc., NRG Energy, and BYD are moving into the valley and maybe your parcel will be next.

Wind Turbines and Solar Projects Moving Forward West of Lancaster, Ca. in Los Angeles County areas of Neenach and Fairmont Butte

2011-04-13T07:43:00.001-07:00

According to the Los Angeles Times recent article, Element Power of Portland Oregon is planning to erect a 230-megawatt green energy facility with solar and wind generation abilities. The planned installation is very prettily and non-threateningly named “Wildflower” and is set for 2,200 private acres of former grazing land where the current property owner operates a horse ranch. Healy Ranch runs west of Fairmount Butte south of Ave E along 160th Street West. Most of the ranch is south of Ave F between 160 to 170th street West to the aqueduct at approximately Ave H. It also runs south of Ave G to 130th west in a u shaped form.
The company will have to tread carefully wind energy and solar power projects proposed in California often attract opposition from residents worried about encroachment, or animal rights groups concerns with endangered species and others with a host of complaints. A number of solar projects have been given the green light such as AVSolarRanchOne a close neighbor, Tuusso Energy at 100th West at H, and E-solar, Sunlight Partners closer to down in Lancaster. Wind projects are abundant in Kern County primarily in Tehachapi. Previously a wind project was proposed by Scottish Power near Fairmount Butte but that was rejected. Element Power US LLC has an uphill climb on its wind proposal, but Solar projects have been successful in the valley.
Element has filed an application for the project with the Los Angeles County Department of Regional Planning. The company is gearing up for environmental studies and research on how much local property tax revenue will be linked to the proposed facility.
The wind and solar farm, to be located on Antelope Valley’s west side and it is expected to create more than 300 jobs during construction in an area currently suffering a 17% unemployment rate. The site will produce enough power for more than 70,000 California homes, which will be sold to a utility through a power purchase agreement.

NRG Solar Gets Green Light and Wins Community Backing

Patric Hedlund of the Mountain Enterprise reported, In a surprising move, the Fairmont Town Council voted March 24 to withdraw their appeal to the Los Angeles County Regional Planning Commission against a solar farm given a “fast track” permit. NRG Solar was given a green light to begin building its facility in the Western Antelope Valley without first providing an Environmental Impact Report, which competing renewable energy developers have agreed to perform. The council filed an appeal, then went into private settlement discussions with the company. The appeal was scheduled to be heard on March 30. At the March 24 public meeting held at WeeVill Market, Keith Latham of NRG read the terms of the agreement, which he said will not be public until construction begins in June.
Some of the points: About 40 acres of land for conservation purposes will be “dedicated in perpetuity” to the community. Fences are limited to a height of six feet and no razor wire will be used. Access for wildlife movement through the fenced solar farm will be established.
NRG agreed to plant indigenous trees around the property and “adjacent to the lower fence” to mitigate visual impact. Wildlife movement through the trees will be encouraged. Outside of that “there will be a maintained area, so people can walk and get from one side of the project to the other, without undue problems” in case there are “wall to wall” energy projects.
A parcel of land is allocated for community services. A “small amount of money” will be provided to the community annually for 20 years through a conservancy created by the town council, he said, to benefit the community.
Several of those at the meeting said they are in favor of renewable wind and solar energy, but a regional plan needs to be created— with community involvement— before it is too late.
Members of the Fairmont Town Council said they had talked with “about 80 percent” of the residents within their boundaries, and that there was consensus to accept the plan. Attorneys Pat Murphy and David Jefferies said they had been involved in structuring the deal.
Some at the meeting said that those protesting the vote do not live within the boundaries of the Fairmont Council. In turn, the legalities of a town council forming a conservancy and entering into an agreement with NRG were questioned by some Western Antelope Valley residents after the meeting.
Wendy Reed, executive director of the Antelope Valley Conservancy issued a cease and desist letter immediately, regarding the name chosen for the Fairmont Council’s conservancy. She said it was too similar to her group’s registered service mark. Jefferies is reported to have agreed to use another name. —Reported by Patric Hedund

Sunlight Partners Gets Initial Approval for Photovoltaic Solar Site at 40th Street East at K8

2011-04-01T07:46:00.000-07:00

The Lancaster Planning Commission minutes from their recent meeting indicate that Sunlight Partners is requesting a conditional use permit for the construction and operation of a photovoltaic solar electric energy generating facility in the Rural Residential Zone. The proposed project consists of rows of PV panels on single axis trackers which would generate approximately 1.5 megawatts (MW) of electricity. The City of Lancaster has determined that the development and use of alternative energy is beneficial to the community, and this determination is evident in the decisions made by the City Council. The City Council has implemented several solar and wind energy programs thus far and they are working to install solar panels on City facilities. Additionally, the City’s General Plan has several policies pertaining to alternative energy. These objectives address the need to develop new sources of energy, as well as reduce energy consumption, and it is consistent with the City’s goals according to the Commission.

The project site is currently vacant and zoned SRR (Semi Rural Residential). However, the City’s zoning code does not permit the development of commercial-style solar energy facilities under the current SRR zoning; therefore, rezoning of the site to RR-2.5(rural residential) is necessary to allow the project to move forward. The proposed project would operate year-round, producing a total of 1.5 MW of renewable electric power during daytime hours. Power generated by the proposed project would be sold to Southern California Edison. The proposed project consists of rows of photovoltaic panels on single axis trackers with three inverters in the middle of the project site. These photovoltaic panels would convert sunlight directly into electrical energy without the use of heat transfer fluid or cooling water. The project would tie into the transmission lines that run along 40th Street East. A chain-link fence would surround the project site and a 10-foot landscaped planter would be provided between the fence and property line to screen the development from the surrounding uses. Access to the project site would be provided via a gate on 40th Street East. Irrevocable offers of dedication would be provided for both Avenue K-8 and 37th Street East. Avenue K-8 would be dedicated at 42 feet from the centerline, and 37th Street East would be dedicated at 32 feet from the centerline.
The proposed project has the potential to impact views from the surrounding roads and nearby residences. The photovoltaic panels are low profile with a maximum height of approximately eight (8) feet. While the views of the project site would change, the development would not impede long range views. Additionally, the project site would be fenced and landscaped around the entire perimeter.
Construction of the proposed project would generate noise, which has the potential to impact surrounding land uses. Mitigation measures are required which would reduce noise impacts to a less than significant level. Minimal amounts of noise would be generated by the operation of the proposed project and only during routine maintenance as the panels and tracking system are silent. Most of the time the facility would be remotely operated and no noise would be generated. Additional environmental impacts could be generated during construction of the proposed project with respect to biological resources and geology soils. The construction of the proposed project has the potential to impact burrowing owls during vegetation removal and grading operations. The applicant is required to conduct a pre-construction burrowing owl survey prior to the issuance of any permits. In the event burrowing owls are encountered on the project site during the survey, the applicant shall coordinate with the California Department of Fish and Game to determine the appropriate procedures/mitigation. Therefore, potential impacts would be less than significant. The applicant is also required to prepare and implement a dust control plan in accordance with AVAQMD Rule 403 which would ensure that impacts from dust during construction are minimal. Therefore, staff is recommending that the Commission approve the zone change and conditional use permit subject to the proposed conditions, based on the site having sufficient area to accommodate the proposed development, adequate access and services being available for the use, and the lack of significant adverse effects on the surrounding area.

SoCal Edison Power line Project in Western Antelope Valley the Electromagnetic fields (EMF) Your Health and Property Value

2011-03-16T08:18:00.000-07:00

Southern California Edison (SCE) is undergoing a project to install new High Tension power-lines through Antelope Valley and expand existing power lines. The new power-lines will run through Angeles National Forest and run up along 105th Street West to and through the western portions of Kern County. SCE would be required to obtain new easements across over 100 privately owned parcels, as they expand their existing lines and create this new path. The mere mention of a proposed high voltage transmission lines and a new utility corridor in a community causes concern to property values. Eminent domain procedures have been occurring where in some cases 2.5 acre parcels are cut in half to expand current power line paths leaving property owners with tiny remnants of their parcel sitting along the high tension lines. The project will have a direct affect by potentially reducing property values within their visual range. The loss of the panoramic scenic vistas most properties enjoy could decrease the value of their homes, parcels and ranches. Most would agree that power must be supplied from somewhere, but nobody wants a negative effect on their investments, asset or lives. Virtually 90% of western Antelope Valley and Kern County is vacant unused land with small pockets of custom homes and some farming. SCE is proposing to install these power-lines on uninhabited land(investment land), but the long term investor could be affected, or will they?

The issue with power-lines is that it will ruin the view, but mainly the effects of Electromagnetic Field (EMF) that it produces. EMF has many sources and includes overhead power lines, radio broadcast towers, telephone/television microwave transmission and computer equipment. EMF is invisible radio wave energy that in some circumstances can change biological function. EMF from SoCal Edison’s proposed power-lines is called "extremely low frequency" magnetic field, which are produced by high voltage power lines. Several studies have linked high voltage power lines with increased cancer risk for children. Research from the University of North Carolina in Chapel Hill and the University of Colorado found a five-fold increase in childhood cancer, particularly leukemia, in those homes near the highest level of extremely low frequency fields. Homes showing increased cancer risk were within 48 feet of power line wires designed to carry very high electric currents and within 22 feet of power lines designed to carry lower currents. Risks of breast cancer, depression, and other negative health effects are based on much more limited evidence and are even more speculative. There is enough information to have some concern, but not enough to set exposure standards they indicated. Other studies have indicated that the question of a "safe distance" is, at least, a complete unknown.
National Institute of Environmental Health Sciences (NIEHS) said that the "strongest evidence" for health effects comes from statistical associations observed in human populations with childhood leukemia and chronic lymphocytic leukemia in occupationally exposed adults such as electric utility workers, machinists and welders. "While the support from individual studies is weak," according to their report, "these epidemiological studies demonstrate, for some methods of measuring exposure, a fairly consistent pattern of a small, increased risk with increasing exposure that is somewhat weaker for chronic lymphocytic leukemia than for childhood leukemia."
However, laboratory studies and investigations of basic biological function do not support these epidemiological associations, according to the report. It says, "Virtually all of the laboratory evidence in animals and humans and most of the mechanistic studies in cells fail to support a causal [cause and effect] relationship."
While sections of the report say EMF exposure "cannot be recognized as entirely safe," the report concludes: "The NIEHS believes that the probability that EMF exposure is truly a health hazard is currently small. The weak epidemiological associations and lack of any laboratory support for these associations provide only marginal scientific support that exposure to this agent is causing any degree of harm."
Research continues on some "lingering concerns," the report says, and efforts to reduce exposures should continue.

It appears from the studies that the risk of power-line exposure is possible, but also maybe only a small hazard. The risk is enough for some land investors to not buy land near power-lines or sell at a reduced rate. We have observed numerous housing projects, strip malls, restaurants, and businesses operating along high tension power-lines. You can do your own visual research, and you will find medium sized high tension power-lines in and around densely populated areas. Development occurs in all facets around these power-lines, so in the long term when development is needed builders will buy and construct at and near power-lines. It may occur in the later stages of development, but when your parcel is surrounded by development then you can ask the highest value. Our conclusion is that property investment has its risks, but for longer term investors even power-line property can be profitable. But as there is an abundance of unencumbered land available in Los Angeles County then buying land today closer to development and services is a better investment today.

How to Get a Land Loan for a California Lot or Custom Home

2011-03-01T06:22:00.000-08:00

Lot loans can be much more difficult to obtain than a typical home loan. Getting a mortgage loan for a home or condo may require a higher down payment and a good credit score in today’s loan market, but it is easy enough to obtain even with a thirty year payback. If you want a loan for raw land well today that is maybe mission impossible. There are no banks that we are aware of that will offer a 100% loan for raw land purchases. IndyMac Bank of Pasadena was one of the first banks to be taken over in the last financial crisis by the FDIC in 2008. Its assets were absorbed by OneWest Bank. We have found that IndyMac provided loans of up to 85% of the land value. A number of those properties were foreclosed on and resold in the past year. Other major banks like Bank of America and Wells Fargo have foreclosed on some land owners and have resold those properties in the last few years also. Yet we are not aware of the details of those foreclosures. A direct loan from a bank for a land parcel is likely a thing of the past as banks require more security and undeveloped land provides no bank security as raw land is more speculative and has no improvements.

A more likely land loan would be a loan to build a home. The most efficient way to do this would be a construct to perm loan which is a land loan to construct a home. It is different than a construction loan. According to ehow as construction loans are temporary as they are drawn upon during the construction process. There is no principal paid on a construction loan during this draw stage, as it is used entirely to construct a project. A construction perm loan is a one loan to build a home that takes the place of up to three separate loans. You can write a contract for the purchase of land, and add it to the loan package, saving the cost of closing a land loan. The second is the construction loan itself. One can go into a bank and get a construction loan and pay to close it. Later one would have to pay to close a permanent loan to pay off the construction loan. A construction perm loan would encompass all of these loans into one, saving money in time and closing costs. You get the loan to buy the land, and to construct the home making it a longer term loan.

Another option may be an “owner will carry loan” (OWC). This is a seller financed loan where the land seller gets interest from the buyer over time. These are typical monthly payments at normally competitive interest rates. These types of loans are usually short term from as low as three to fifteen years. They can be longer or even shorter terms. You should expect to pay current market interest, and we advice you get a no penalty for early payment. The down payment (deposit) is usually higher. An example may be a $20,000 property would require a $5000 deposit. The balance of $15,000 paid monthly at 7% interest over 5 years. In this case you would pay $297/month over 5 years or $17,820. This is an easier way to purchase land over time without the need for bank credit. If you fail to pay then the seller can foreclose on the note and the seller retains the deposit and any payments you have made. This process is very common in the purchase of raw land.
For more answers on land opportunities and owner will carry options contact us at vacantlanddeals.com

Where are the Significant Ecological Areas of the Antelope Valley in Los Angeles County, Ca?

2011-02-09T07:27:00.000-08:00

(photoPhilipGreenspun)
We get a number of inquiries regarding the location of these plant and animal wild life areas. We have looked at specific areas of the Antelope Valley which harbor most of the Significant Ecological Areas (SEA) that encompasses stricter land uses. These areas are essentially protected natural locations and by definition a protected area would be a “clearly defined geographical space, recognized, dedicated and managed, through legal or other effective means to achieve long-term conservation of nature, the ecosystem, and cultural values”.
The stricter land use primarily means less development would be allowed, but development is not prohibited. For example a small portion of AVSolarRanchOne’s property is within a SEA Zone.
There is a map supplied by the Los Angeles County Regional Planning department, but as far as we can tell a detailed version is not online, but you can purchase one from the Planning Department. The SEA zone areas that involve the Antelope Valley are mostly on the far west side. Most of these but not all of theses area involve the Joshua Tree Woodlands. Approximately (2) 640 acres parcel areas between 180th West to 190th West Ave C-8 to Ave E-8, Also a large 640 acre Park at 200th West to 210th at Ave E to Ave F, Most of Fairmount Butte south of Ave D (Hwy 138) through the Butte mountains to the foothills of the San Gabriel Mountains. It also encompasses most of the area from 200th to 210th West from Ave. C-8 to Ave F which includes the Park. Another area is a backward L shaped area from 190th West to 200th West Ave B-8 to Ave D. In addition, there are two large areas which are irregularly shaped from Ave A to A-12 200th West to 220th West. This particular area was owned by Red Dawn SunTower LLC (E-Solar) which they now appear to be selling. It may be because they ran across environmental issues with the Joshua Tree Woodlands. There is another large area which spans the breadth and width of AV SolarRanchOne now owned by First Solar Inc.
This SEA Zone area is generally north of the developing Solar Ranch running 140th West to 180th West from Ave B to Ave D. The SEA zone doesn’t cover all of this area but most of it.
On Antelope Valley’s East Side there are three main Significant Ecological Areas one is the Llano wash where the SEA zone runs the length and width of this along a narrow stream corridor from Ave Z north to Ave M 110th East to 150th East at its widest span. The second area surrounds and encompasses Saddle Butte Park which is 160th East to 200th East Ave J to Ave M. This SEA zone is almost a circle around the Park. The third area is 230th Street East to 260th Street East (San Bernardino County line) from Ave R south to the mountains. Theses three East side areas involve water areas and washes which provide nutrients and protection to small plants and animal life.
There is sparse development in these SEA zones, but large development would most likely be prohibited. Two cases in point are the Fairmount Butte Motor Sports park was within a SEA zone and that project is now cancelled, and also E-Solar is selling most of the land it recently acquired we think primarily because of the Joshua Tree Woodlands. But custom homes have been built and continually are built in these areas, and as we mention part of AV Solar Ranch One’s property is within a SEA Zone.

Environmentalists Say Yes to Solar Land Development But No to MotorSports

2011-02-01T07:08:00.000-08:00

Late last year the Fairmont Butte Motorsports Developer bowed to environmental and community opposition. In an open letter to supporters he wrote: I regret to inform you that, after more than eight years of hard work and high hopes, I have decided to discontinue efforts to create our vision for a beautiful new racetrack in the Antelope Valley. As you might imagine, it was an extremely difficult decision
Respectfully,
Thomas E. Malloy

We also located a follow up e-mail from County Supervisor Deputy
via the AV High Desert Forum site
November 18, 2010
I have been informed this afternoon the property where the Fairmont Motor Sports park was proposed to go has been sold to another buyer. The buyer is using the property as mitigation land and open space. The Racetrack is no longer a concern as County Regional Planning has been told to stop all work on the project.

Norm Hickling, Deputy to Supervisor Antonovich
Antelope Valley Field Office

The AVSolar Ranch One had passed its EIR (Environmental Impact Report) last September, but the Motorsports proposal couldn’t jump that hurdle. AV Solar Ranch One indicates on their website that their projects have environmental benefits of low visual impact panels (10 feet maximum), no water requirement to produce electricity, avoidance of Joshua Tree Woodlands, and no impact on threaten species. Both projects were situated almost across the road from one another at 170th to 150th West at Hwy 138 (Ave D).

The Joshua Tree Woodlands is part if the Significant Ecological Area (SEA), and virtually fifty percent of the Motorsports Parkway proposal was in the SEA zone. It also appears a small portion of AV Solar is within the SEA zone. LA Regional Planning indicates that the 320 acres of land the Parkway was going to use will now be mitigation land and open space, so this area at 150th West at Hwy 138 will be not be developed. It also looks like much of the Fairmont Butte area will not be developable as much of this area is SEA zone with protected plants and animal life. Property owners should think seriously about buying land in these areas as environmental groups and Los Angeles Regional have drawn a line in the Antelope Valley desert sand. Large developments in SEA zones may face environmental obstacles, but small custom homes on SEA zones have occurred as they have limited impact on the environment.

Tips on Buying California Investment Property, Undeveloped or Pre-Developed Land?

2011-01-18T14:14:00.000-08:00

Generally there is only developed land which has some or full development on the parcel, or undeveloped land which would be considered just raw land with limited or no access but with future potential development. Much of the available raw land in the US is agricultural land or just vacant unused land. There is also an in between designation we identify as pre-developed land. The main distinction between Un and Pre developed land is the proximity to current development and the zoning of the parcel, but both are Land Banking options. Undeveloped and Pre-developed land offers the potential of both risk and reward whether it is zoned rural residential agricultural land, or typically better zoned pre-developed land which could be zoned urban residential, industrial or even commercial land use. Undeveloped land is generally less expensive to purchase than pre or developed land. An abundance of undeveloped land in Los Angeles County is designated agricultural use as large amounts of land is needed for farming, but usually this land type also allows limited rural residential uses. Don’t be afraid of the agricultural zoning as much of current developed land was previously agricultural land. Many of today’s farmers are now real estate investors as urban growth has encroached and absorbed their land.

Many parts of the City of Palmdale and Lancaster Ca. include vacant land parcels within the city limits or just outside, but at a distance from development. Much of this pre-developed land is rural residential, industrial (light or heavy) and a lot of multi-family residential zoning. The lowest price per acre would be the rural residential where an owner would be allowed to build one home per 2.5 acres. This type of land is cheaper acreage but high reward as the zoning can change to a more favorable zoning over time as city planning designates. The higher price per acre available vacant parcels would be multi-residential R-7000 or R-10,000 allowing one dwelling per 7000 or 10,000 square feet. You would have to pay a much higher price for this type of parcel zoning, but the return on investment can be in the thousands of percentages since housing developers will pay top dollar for needed property if you held the parcel longer term.

You can look at buying either undeveloped or pre-develop land based on your capital and time horizon. A low capital investment and longer time horizon which may be typical for a 401k, or IRA type of investment would best fit an undeveloped parcel. For example an investor could purchased a 10 acre parcel in LA County for $3000/acre of rural residential and agricultural land zoned and hold it for fifteen to twenty years. It is an ideal buy and hold opportunity where you should target a 200% return in twenty years or less. This would be a buy it and don’t worry about it investment. Undeveloped land should have the higher percentage increase of the three examples of land over time as it is easier to double you money on a $3000/acre investment than a $50,000 per acre investment.

Now with pre-developed land we have a high profit potential and a lower risk property with usually a higher capital investment and shorter time horizon target. Potentially it has all of the profit potential built in. Ideally, pre-developed land could have a better return on investment based on its zoning. Pre-developed land would be land directly in the path of growth with targeted zoning and in or near current city limits. A past example of pre-developed land would be the San Fernando Valley where decades ago one would pay $10,000 per acre for a vacant land parcel just outside current development. Today that type of parcel would be hundreds of thousands of dollars per acre over several decades. But you don’t have to sell the parcel after holding for decades as the parcel should be profitable in less than ten years. We look at pre-developed land as a more favorable profit potential in a shorter time frame as it is the land that has been allocated for near term future development for the cities growth. The urban development alone will drive the price increase of this type of property.

We have both types of properties in our inventory, which fit undeveloped and pre-develop scenarios in Northern Los Angeles County cities of Palmdale and Lancaster Ca.

Why Los Angeles County Undeveloped Land is a Better Investment Vehicle Than the Stock Market

2011-01-06T09:47:00.000-08:00

The Stock Market in 2010 has been rising, but the best long term secure investment may not be stocks in 2011. We feel land in general is a better long term investment than stocks. Stocks can be volatile and some stocks rise while others may go sideways or down. Most need an advisor to guide them in today’s equity markets, and with the global debt crisis their future value can be murky. Many analysts say the buy and hold strategy may be dead as short term trading is prominent in today’s stock markets. Land Banking and long and short term land investment has shown to be a more secure, patient, low risk and lucrative means for buy and hold investors. Investors can buy and forget about their investment for three to ten years as it grows. We focus on Los Angeles County land and undeveloped land in the Antelope Valley for several reasons. Mainly, the population growth in the county has increased from 4.1 million in 1950 to 9.6 million as of 1998. The US Census has projected that the population will increase to 12 million by 2025. The real estate prices have increased with this growth over the decades, but have recently returned to earth. In addition, land prices have also deflated with the real estate bubble. But real estate prices and land prices have potentially hit the bottom of the trough in the price curve. It is similar to buying stocks after a major sell off, since higher prices are most likely in the future. Land is at or near its bottom in this area as growth in the solar and wind industries has increased in the Antelope Valley recently. Solar and Wind Energy companies require large swaths of land for their facilities leaving less undeveloped land for homes. Home development is not on the increase currently, but once the population demands housing again then land prices will increase accordingly. Buying land now, especially pre-developed land at these lower prices has the potential to produce a much better return and lower risk investment then the stock market has in the past decade.

The past ten years the stock market has been referred to as the lost decade, since the market is trading right where it was nine years ago. Stocks, long touted as the best investment for the long term, have been one of the worst investments over the past nine years, and trounced even by lowly treasury bonds according to the WSJ(Aug. 2010). In an article from LandThink.com, Professor Jeremy Siegel of the University of Pennsylvania’s Wharton School indicated that stocks showed an average gain of seven percent a year when the data are controlled for inflation. This average works when looking at many stocks over many years. Some individual stocks may have increased more, but adjusted for inflation, a dollar invested in the S&P 500 in April 1999 produced no gain at the end of March 2008. The performance of big U.S. stocks amounts to an average annual rise of 1.3 percent during the past decade after dividends and inflation are counted in. (E.S. Browning, “Stocks Tarnished By ‘Lost Decade,’” Wall Street Journal, March 26, 2008.)

Yet, farm value in current dollars averaged $2,160 per acre nationwide on January 1, 2007, up from $974 in 1998, a 13.5 percent average annual gain according to the U.S. Department of Agriculture. Cropland during that period rose from $1,340 to $2,700; pasture rose from $489 to $1,160 (source Landthink.com)

An individual investor has to continually watch the stock market to ensure gains, or trust a financial planner to provide advice and expertise on the best stock investment. But undeveloped land is a much easier investment as it doesn’t require a financial advisor, maintenance, or exhaustive company research. Land is not exposed to flash crashes, insider trading, corporate public relation issues, or even Wikileaks. Land values slowly increase or decrease over time, so it is an ideal long term investment to literally bank on the future. It is the ideal buy and wait investment, so buying now at lower current prices may be your best retirement vehicle. Individuals simply can not make enough to retire by placing money in savings, or CD’s. You need to invest for your retirement, and we believe longer term land investment can provide you a secure future.

VacantLandDeals.com was formed to help investors find land investment opportunities at the low end of the market, and in the path of growth

AV Solar Ranch One Project gets Unanimous Approval against Northrop Grumman's Protest

2010-12-19T11:37:00.000-08:00

Marc Lifsher of the Los Angeles Times reported November 24, 2010
L.A. County supervisors refuse to put the brakes on the 230-megawatt project despite the military contractor's contention that it would interfere with its radar testing operations.
The Los Angeles County Board of Supervisors denied a request from Northrop Grumman Corp. to delay final approval of a major solar project in the Antelope Valley near the military contractor's facility for testing radar evading stealth aircraft.
On a voice vote, supervisors rejected Northrop's appeal Tuesday, opting to let plans for the 2,100-acre complex of photovoltaic solar panels proceed. Final approval was expected Dec. 7, 2010.
Grumman argued that the project would "adversely impact the military mission" of the sensitive, 1970s-era testing center, just south of the Tehachapi Mountains in Kern County.
Antonovich noted that the project, AV Solar Ranch One, already has received a conditional use permit from the county regional planning commission.
The renewable energy developer, First Solar Inc. of Tempe, Ariz., has solid backing from area business, civic and government leaders, including Gov. Arnold Schwarzenegger, Sen. Dianne Feinstein (D-Calif.) and the mayors of Lancaster and Palmdale.
The 230-megawatt project would provide 400 construction jobs in an economically depressed part of the county, said Frank De Rosa, a senior vice president. Once completed in 2013, it would generate enough electricity to power 75,000 homes.
A solar energy generating plant is "the highest and best use for this particular property," said Mel Layne, president of the Greater Antelope Valley Economic Alliance.

The Daily News wire also reported on the story stating that a representative from Northrop Grumman said the 10 foot high photovoltaic panels would interfere with the contractor's testing of stealth aircraft. Northrop tests the B-2 bomber in the high desert and manages "several fully classified programs" aimed at creating the "next generation of stealth aircraft" in Palmdale, which would be adversely affected, said Leonard Figueroa, a director of engineering for Northrop. He said the projects at risk are secret and could not be publicly discussed.
The county's Regional Planning Commission approved the project on Sept. 15. Attorneys for Northrop Grumman did not file documents in objection until Friday. Attorneys for Northrop from Sheppard Mullin Richter and Hampton "just dropped off a stack of materials Friday afternoon," said Supervisor Michael Antonovich, adding that he found the last-minute timing "unprofessional."
Jack Rubens of Sheppard Mullin said experts needed time to review the Environmental Impact Report for the project, which they didn't receive
"The goal is to allow this project and others to go forward," said Rubens. But his client sought to delay the project until they could work out alternatives with the county.
Antonovich said he understood that the company was positioning itself to ask for payments from the county to mitigate the cost of making operational changes. The supervisor noted that public hearings were held in June and September and detailed the long history of the permitting process more than once during the discussion, trying to refute Rubens' allegation that the defense contractor learned of the project only after it was approved.
The supervisor added that he had no advance warning of Northrop's decision last January to move its headquarters and 300 to 360 jobs to northern Virginia. He learned of the move on the morning of the company's announcement to the press, he said.
The affected Northrop facility "directly supports programs employing 15,000 people in Los Angeles County," but only 15 employees work at the site, according to Figueroa.
The board's vote to allow First Solar Inc. to proceed with the project was unanimous.

Los Angeles County Water Lawsuit and the Impact to the Land Investor

2010-12-01T07:43:00.000-08:00

(PhotoStreamImage)

Superior Court Judge Jack Komar handed down his ruling in 2008 during the second phase of the Antelope Valley groundwater adjudication lawsuit. His ruling was that the entire Antelope Valley aquifer has” hydrologic connectivity”, and thus the entire aquifers are connected. This essentially will make it easier for the court to decide how much water can be removed annually. Once it actually decides. This lawsuit began in 1999 where Diamond Farming filed suit against Lancaster and Palmdale water entities over water rights.
It now involves hundreds in a class action lawsuit (case #1-05-CV-049053), and essentially all Antelope Valley property owners, and residents wishing to remove water from the aquifer.

According to the US Geological Survey the aquifers in Antelope Valley are recharged primarily by infiltration of stream flow that originates in the mountainous areas that surround the valley. The USGA estimated that from 1915 to 1950 average annual precipitation on the valley floor has been less than 10 inches, and runoff is minor. The maximum rate of withdrawal of about 400,000 acre feet per year was about 10 times the estimated annual recharge to the basin. An acre foot is about 325,850 gallons, or approximately the amount of water it takes to cover a football field to the depth of one foot. Water removed from storage in the aquifers has been a major part of the ground water withdrawals, and severe water level declines have resulted over the years. By about 1950, studies showed that ground-water withdrawals in the valley were greatly in excess of natural recharge and withdrawals were curtailed. Los Angeles County acquires water from numerous methods now.

Data indicates there is an abundant water supply in the valley. The primary sources of water are groundwater, surface water, and imported surface water while groundwater has been the primary source of water in the area. Prior to 1972, it provided more than 90 percent of the total water supply; after 1972, it provided between 50 and 90 percent. Groundwater is stored in the Antelope Valley Groundwater Basin and sources indicate it has an estimated capacity of 68 million acre-feet with a recharge rate of 31,200 to 80,400 acre feet per year. The primary source of surface water is the Littlerock Reservoir with a capacity of 3,500 acre feet. The imported surface water arrives from the State Water Project (also known as the California Aqueduct). Under the State Water Project the Antelope Valley-East Kern Water Agency is contracted to deliver 160,000 acre-feet per year to the Antelope Valley.

Los Angeles County has needed more and more water over the decades. William Mulholland found the water the growing city needed in the Owens Valley and constructed the aqueduct, but even more water has been demanded. According to Aquafornia’s website the Colorado River Aqueduct brings water from the Colorado River to Southern California for urban uses, and the Imperial Irrigation District operates the Imperial Dam and All American Canal, which supplies water for irrigation in the Imperial Valley. The State Water Project brings water from the San Francisco Bay Delta and delivers it to farmers in the Central Valley, as well as providing water for urban uses in Southern California. Los Angeles County has been able to grow via these water aqueducts, and Lancaster and Palmdale can benefit in their future growth also.

The Antelope Valley groundwater adjudication lawsuit will primarily impact farming and property owners on unincorporated Los Angeles County land, where water wells are the norm. The court outcome is unknown, but the leaning appears to be limited water extraction from the aquifer being more likely. Would that mean a meter on your well, farming limits, and reduced custom home development, possibly? This can also have an impact on the value of County land, where little to no water means lower prices. As Lancaster and Palmdale grow then these cities will need to annex more county land and thus providing access to city water. Better valued land investment would be land in or near the current city limits until this lawsuit is settled.

The last date for a court hearing was November 11th and the topic was (3) Motion by New Anaverde to Substitute Parties and Permit Filing and Service of Supplemental Cross-Complaint; (4) Notice of Related Case filed by Tejon Ranch Corp (Burrows v. Tejon Ranch Corp, Los Angeles County Superior Court, Case No. MC 021281), this is an issue the land investors need to be aware of and we will keep you informed here.

California High Speed Rail to Break Ground in Central Valley in 2011 and Eventually Tracking a Path to Palmdale, Ca. But, Is It a Train to Nowhere?

2010-11-06T11:13:00.000-07:00

The Federal Government seems to be forcing the hand of The California High Speed Rail Authority. Recently, the Feds provided $715 million toward the rail system. The CalHighSpeed Rail Authority press release this week stated that the Federal Railroad Administration forwarded their requirement that the full amount of the $4.3 billion be allocated to infrastructure investment for the proposed system in California’s Central Valley. These funds have to be directed to the rail lines from Merced to Fresno or Fresno to Bakersfield. These funds were part of the American Recovery and Reinvestment Act, and California has received more funds of this type then any other State.

We wonder if this is choreographed or a knee jerk political reaction by the Obama Administration to reward California for staying in the Democrats Camp. GOP elected Rep. Mica trashed the idea of having the federal government continuing to fund a Tampa to Orlando high speed rail line, as he spoke to the Associated Press this week “I am a strong advocate of high-speed rail, but it has to be where it makes sense,” Mica said. “The administration squandered the money, giving it to dozens and dozens of projects that were marginal at best to spend on slow-speed trains to nowhere. The Republicans and the Obama Administration differ in how to pay for fast trains as a Republican Congress wants the rail transportation system to be self supporting, but the Obama Administration expects states like Ohio and Wisconsin to absorb operating losses for their rail systems. California lacks the funds to absorb losses. The newly elected Governor of Ohio John Kasich said via news reports that “the train is dead” He was referring to the Ohio slow passenger train from Cincinnati, Columbus and Cleveland. Also, The Wisconsin Republican Governor Elect Scott Walker promised to cancel the Wisconsin High Speed rail (Milwaukee to Madison). BizTimes Daily reported this week that the Wisconsin Dept. of Transportation told contractors to halt work on the $810 million project.

The California High-Speed Rail Authority CEO Roelof van Ark said in their press release
“The Central Valley is indeed key to creating the core of a true high-speed rail system in California, as that is where our trains will travel truly high speeds of 220 miles per hour,” van Ark said. “But no matter where we start building, the goal remains the same: a statewide high-speed rail system up and running in 2020 connecting the Bay Area with the metropolitan area of Los Angeles and Anaheim, that creates thousands of jobs, improves air quality, and provides us all with a cheaper, faster and more convenient way to travel.”

The Mercury News indicated that the agency says it could build just half of the 50-mile track from San Francisco to San Jose section with the funds available while they can build the entire 60 miles Merced to Fresno corridor or 113-mile Fresno to Bakersfield span. In Southern California, the authority thinks it could build two thirds of the 30 mile stretch. "We have to build a system that is going to be operable as soon as possible and that means building many miles of track that are connected to each other," van Ark said.
But a Central Valley segment will have no operational significance van Ark said major population centers need to be linked and the agency will not bother starting service there.
"We will not have trains when we build this first segment," he said. CalHighSpeedRail Authority release also indicated that they will discuss target constructions locations and other business in their next meeting in December.

We have tempered our celebration since at first glance this would be a track to nowhere, with only rails, bridges, with empty stations, and no train or passengers. This is not a proposal that a Republican influenced Congress would approve as it will not pay for itself. Would Governor Elect Brown call this living within our means? Would the Chinese Banks cover the additional funds needed?

A possible land investment opportunity could be buying land ahead of the rails especially near Fresno, Ca. as that city is certain to be on the trains map. We will keep track of this news and events as it progresses.

California Lands the Worlds Largest Solar Project in Ivanpah, San Bernardino County

2010-11-01T07:17:00.000-07:00

Ground is to be broken for a massive solar thermal plant in California’s Mojave Desert this week. It is called the Ivanpah Solar Electric Generating System. The Estimated cost is two billion and the first to be built on Federal Land (Bureau of Land Management). It has passed a number of environmental hurdles, but it does impose on the desert tortoise habitat. The company operating the system BrightSource Energy indicated via press reports that they will assist in the relocation of the tortoise.
This project is truly massive as it encompasses about 3,600 acres (about 1,458 hectares) and it will involve 346,000 mirrors, each about the size of a billboard. The mirrors project the suns rays toward a 460 foot tower. The heat turns the fluid in the tower into steam which generates electricity. Construction begins next week and it is expected to be completed by 2013 according to the Los Angeles Times. It should produce 370 megawatts which can supply 140,000 homes with the energy being furnished to Southern California Edison and PG&E. There is actually a rush to begin this project and several other solar projects by the end of 2010 as a federal financing program will cover up to 30 percent of the construction cost, but it must begin by the end of the year news reports indicated. According to BrightSource Energy’s website there will be additional new financing from NRG Energy of $300 million which secures NRG as the largest ownership stake in the project. Both companies with Bechtel Corp will work together on construction, equity, ownership and operation.

Ivanpah is approximately fifty miles northwest of Needles, Ca and five miles west of the Nevada border in San Bernardino County. It is just off Hwy 15 and 164. There will be approximately one thousand construction workers on the project, which will be set to begin this winter season, as summer temperatures in Ivanpah can be 110 degrees on average.
There isn’t a town in the area as this location is just open desert land with the only current signs of civilization being a rail road and highway. The opportunity in the immediate future maybe to build a general store to supply the new workers as there isn’t any real development in this area now.

Today Southern California’s Mojave Desert has two of the world’s largest Green Energy projects with the Mega Wind project (Alta Wind Energy Center) in Tehachapi and now Ivanpah. Both of these locations were vacant unused and undeveloped land parcels, so the opportunities for land investors are in this Antelope Valley region. Profitable land investment opportunities are growing in this area and we will continue to inform you here as projections progress.

Virgin Galactic First Manned Free Flight Debuts in Kern Counties Mojave Air and Spaceport

2010-10-13T08:11:00.000-07:00

imagebyGizmodo

The first free flight of the SpaceShipTwo (VSS Enterprise) craft began this week after a series of captive carry flights. The captive carry flights are flights where SpaceShipTwo is attached to its mother ship WhiteKnightTwo (aka:Eve after Sir Richard Branson’s mother) which took place earlier this year in March. The free flight confirmed that the VSS Enterprise’s flight systems were all functioning correctly. News reports quote the pilot Peter Siebold saying “That was a real joy to fly,” “especially when one considers the fact that the vehicle has been designed not only to be a Mach 3.5 spaceship capable of going into space but also one of the worlds highest altitude gliders.” Virgin Galactic plans to enter into commercial operations once all testing is complete. The craft will be taken up to a high altitude by a conventional plane then released at which point, a rocket booster will propel the craft out of the atmosphere. Its reentry would be similar to NASA’s Space Shuttle with a controlled glide to a predefined landing point

It took place in California's Mojave Desert at the Mojave Air and Space Port in the center of Mojave, Ca. between Hwy 14 and Hwy 58 and just north of Edward Airforce Base in Kern County. Flight testing activities have been centered in Mojave since the early 1970s as there is limited population. In addition, being near Edwards Airforce base restricted airspace is ideal for testing. It is also been an emergency landing site for the Space Shuttle, and a famous moth ball fleet site of unused commercial planes covering the horizon. The FAA has given the airport spaceport status through 2014. It has recently gained fame as a Spaceport with Virgin Galactic but other private space companies like XCOR Aerospace a rocket engine and spaceflight development company, Orbital a satellite launch and manufacturer, Masten Space Systems an aerospace startup company, and Interorbital Systems which is working on a line of launch vehicles aimed at winning the Google Lunar X Prize all call Mojave their home. The area has a sparse population but very high tech ambitions. This adds to Antelope Valley’s a reputation for flight as Palmdale, Ca Plant 42 was the original home of the B-2 Stealth Bomber.

Virgin Galactic $450 million project will eventually see six commercial vessels shuttling into space as Virgin Galactic has lined up some 370 customer deposits totaling some $50 million for what it will be the world’s first commercial passenger space flight operation. Each passenger gets the same seating position with two large windows, one side window and one overhead, so that, if you don't want to float free in space, and you'd rather just remain in your seat, you still get a great chance to see the view.

Lancaster, Palmdale and Mojave Ca. continue to promote high tech opportunities with homegrown technologies that can’t be outsourced. The growth in Solar, Wind, Aerospace and Space technology provide long term professional jobs within a commuting proximity to Greater Los Angeles. These are the types of signs of an expanding economy, and an investment opportunity to be ahead of the curve. Landbanking is based on buying and holding undeveloped land for the near and long term. Low priced land is available today in 2010 for a good potential profit in five to ten years.

Is the California High-Speed Rail Coming Around the Corner?

2010-10-01T13:21:00.000-07:00

AP Business news reported on Governor Swarzenegger’s trip to China promoting California products and tourism, but a main point on this overseas trip is to investigate high-speed rail technology and financing. The New York Times also reported in early April of this year about China negotiations with Sacramento to use their high speed rail technology to build the rail-line from Sacramento ultimately to San Diego. The proposed rail would initially be built from Los Angeles to Anaheim and San Francisco to San Jose and then expand from their (see cahighspeedrail.ca.gov). A future rail stop will also be in Palmdale Ca. In the AP News article the Governor was to travel from Shanghai to Nanjing using China’s speed train. Currently China has the world’s longest high-speed rail network spanning 4300 miles, and can run up to 220 miles per hour.

The Governor is also planning stops in Japan and South Korea to experience their high speed rail systems as they are also suitors to build the California Rail System. Interesting though South Korea and China learned the technology from France and Germany which have also presented proposals to Sacramento along with Italy and Spain. The Europeans are skeptical of Chinese technology, since its European grown, so there maybe some licensing issues. There may also be labor issues as Chinese labor laws do not favor the laborer. Yet, the Chinese have preliminarily agreed to abide by all US labor laws. The NY Times indicates the cooperation agreement would entail eighty percent of the components to come from American suppliers and assemble to be done in the US. A potential site would be the previous auto plant in Fremont Ca. thereby keeping most of the jobs in the State. The largest obstacle may be financing as the project is expected to cost $46 billion, but Chinese Banks may also be the solution. Up to $8 billion has already been pledged by the Federal Government as part of the Recovery Act. The Chinese have offered to also help further finance the project. Can the US afford such a large contribution in technology and financing from a foreign power? Can the State afford not to with 12 % unemployment? Would travelers actually take the train? There are many real issues that can derail this project, yet numerous governments are also fully behind it.

Many investors in Lancaster and Palmdale have been looking for signs of growth, so the potential for a rail line with the expansion of Solar and Wind technology in the Valley does show current and future expansion. The State Department of Finance is also expecting population growth from 2010-2015 to increase by 2 million and potentially an additional 18 million by 2040 with Southern California getting most of this growth. There looks to be speculative land opportunities still on the horizon, and Antelope Valley looks to benefit.

Centennial Touts High Profile Jobs and a Self Sustainable Town in Their Development Plan

2010-09-13T14:06:00.001-07:00

Centennial’s recent newsletter indicated they plan to provide 1.3 jobs per household, or approximately 30,000 in all, over its 20-year development period. They indicated that their plan will ultimately cut down on the overall environmental impact of the area by using green technology. In their job creation they hope to attract higher educated professionals and higher wage earners in the scientific, and technical industries, but also to have opportunities for all skill levels.
Centennial commissioned LAEDC ( Los Angeles Economic Development Corporation)
to assist them in locating the best business prospects for the area in the coming years. The LAEDC indicated that construction would be the second highest target job sector. Centennial plans to need approximately 30,000 construction workers just to build the project over the 20 year building process. They are also hoping to attract a large secondary education institution, and a medical facility. In addition, due to the low prices of land in the Antelope Valley they hope to attract manufacturing businesses in the electronic fields. Low priced land and nearby services and facilities with a higher educated workforce should spurn education, healthcare and manufacturing development. Green technology is rapidly growing in Lancaster, Palmdale and Kern Counties with Wind and Solar, so it is already beginning. They expect a multiplier effect where one job produces the need for more jobs and services like retail, community services, and ideally these wage earners will wish to live in Centennial with likely 70,000 jobs created in the area over time. The nearby Tejon Industrial Complex where Hwy 5 and Hwy 99 meet at the bottom of the Grapevine employs one thousand people at IKEA, Oneida, and Famous Footwear, so they have history and success in their past developments.
It looks like Centennial has a real plan to build this upscale city. They intend to complete it slowly and methodically unlike other nearby city planners. We believe that as the development progresses the vacant land in this area will become more desirable and increase in price. We will keep you informed here to the progress in this area and land investment opportunities that arise. This is just another sign that the Antelope Valley shows good long term investment opportunities.

Significant Ecological Land Areas of Los Angeles Counties, Antelope Valley, To Buy Or Not to Buy SEA Land?

2010-09-01T06:28:00.000-07:00

The Antelope Valley and Surrounding areas of Santa Clarita, and parts of Kern County have significant ecological areas (SEA) which were designated in the county's 1980 General Plan. They are intended to protect wildlife migration corridors and valuable habitat for native plants, birds and mammals. Los Angeles County officials define a significant ecological area as an important habitat for native plants and animals or fragile land or water area. Some of the plants and animals in these areas are the Joshua Tree Woodland, alkali scrub, scrub oak, creosote, California poppy, wildflower grasslands, ephemeral streams, burrowing owls, ground squirrels, desert tortoise, bobcats and coyotes.

The name, number and location of these areas near Antelope Valley are San Francisquito Cyn. (19) north of Valencia endangered fish Santa Clara River(23) Santa Clarita Valley endangered fish Edwards AFB (47) north of Lancaster endangered plants Big Rock Wash (48) Antelope Valley wildlife habitat Little Rock Wash (49) near Palmdale wildlife habitat Rosamond Lake (50) N.E. of Lancaster alkali sink Saddleback Butte east of Lancaster wildlife refuge, State Park (51) desert wildflowers Alpine Butte (52) east of Palmdale wildlife, wildflowers Lovejoy Butte (53) east of Palmdale wildlife habitat Piute Butte (54) east of Palmdale birds, wildlife Desert-Montane east of Palmdale wildlife habitat Transect (55) Ritter Ridge (56) west of Palmdale Joshua trees Fairmont & Antelope west of Lancaster refuge for birds buttes (57) of prey Portal Ridge/Liebre near Gorman diverse plant life Mountain (58) Tehachapi Foothills (59) near Gorman wildflowers Joshua Tree Woodland (60) N.W. of Lancaster Joshua trees Kentucky Springs (61) south of Palmdale Great Basin sage Lyon Cyn (63) Valencia woodland habitat Valley Oaks Savannah (64) Valencia valley oak habitat

Growth in these unincorporated SEA areas of the Antelope Valley is limited but not prohibited. There is currently development in these areas, and homes can be built in the Joshua Tree Woodlands, but you will not see urban sprawl like there is in Lancaster and Palmdale, Ca. The SEA areas are guided by the Los Angeles County Antelope Valley Area Plan. The Area Plan designates each property for a particular land use, such as rural residential, urban residential, commercial, or agriculture. In addition, the Area Plan includes a movement plan for trails, bike routes and highways, provisions for the protection of environmentally sensitive areas, and specific policies for each town in the unincorporated area. There was a proposal to preserve over 200,000 acres of Eastern and Western Antelope Valley as a Significant Ecological Zone. That plan earlier this decade would have limited the development of any home in an SEA area to one home per ten acres. Those targeted areas included the Joshua Tree Woodlands and most of the Eastern Antelope Valley from the city limits of Lancaster and Palmdale to San Bernardino County. That proposal was not adopted. Recently there have been a number of Solar Facilities which have gotten approval at of near SEA Zones, so there has been development in or near these areas. In addition a recreational racetrack is nearing approval near the poppy reserve.

Land investors who own land in these areas or those who plan to invest should consider the positives and negatives of any investment in a SEA zone as development is restricted. Some of these areas could be mitigation areas, where the Bureau of Land Management would approve a developer to develop in another area if they buy a SEA zoned area and donate its use and protection to the park service. This mitigation exchange is quite common. Investment due diligence is necessary when making a long term investment.

Mojave Solar Project Gets Initial Green Light With Assistance From Rosamond and California City

2010-08-14T12:34:00.000-07:00

The Antelope Valley Press recently reported a potential approval of a $950 million Solar Plant in Mojave Ca. The plant is proposed on 2000 acres off of Hwy 14. The California Energy Commission has given a 30 day period for public opinion on the proposed project. The issue that may halt the project is its need for fourteen hundred acres of water per year, as water is scarce in the desert. The proposal from the developer is to use treated water and or sewage water from the two local communities of Rosamond and California City. E-Solar has proposed a similar solution for their facility in Lancaster, Ca. E-Solar proposes to use runoff and treated water and further naturally treat it on 100 acres in Fox Field. The Mojave Solar project requires water because it relies on a solar thermal design by using mirrors to capture and reflect the suns raze to a network of tubes. Liquid in the tubes is heated thus in turn powers a steam turbine that produces electricity. The AVPress indicates that officials in the city of Rosamond and California City have agreed to supply the treated water.

This project will be at least the fifth new solar power project in the Antelope Valley in the last two years, clearly making the valley a developing green zone. The project appears to have the approval of the Energy Committee, and local city officials. It is miles from any real development, so there will likely not be much residential disapproval. Once the project gets the green light then it would take two years to construct and would employ just over fifty full time employees. It will likely be the only development for tens of miles.

This type of land currently sells for below two thousand an acre showing that the developer has been cost conscious. All of this land is simply desert land and zoned rural residential and agricultural use, but there is nothing that grows in this type of environment. Without solar this area would have very slow growth. We are encouraged by the development, but we wouldn’t recommend buying this land so far north of California City. It would be better to be closer to a growing area like Rosamond or Lancaster Ca.

Mega Wind Project Set To Get Underway Near Mojave Desert

2010-08-01T10:21:00.000-07:00

The Los Angeles Times reported this week that the Alta Wind Energy Center has broken ground. The reason this project is considered mega is how it started and the overall plan. It is considered the largest wind power project in the US today. The project has had multiple ownership changes since 2000, the original planner went bankrupt and it has not been well received by the local community. The developer Terra-Gen Power has since taken over the project and they have begun breaking ground for the 290 turbines over the nine thousand acres along the Tehachapi Pass. They have also secured over a billion in funding, and are set to receive turbines from Vestas-American Wind Technology. The plan is to provide power to six hundred thousand homes to Southern California Edison customers as they are compelled to meet the State goal of supplying thirty three percent of energy from renewable sources by 2020.

The next faze will involve another 300 turbines by 2015 with potential wind blades being nearly a football field long. The entire project will dwarf the existing landscape of turbines along the pass. Most of this area is farm land along Hwy 58 tucked away among the mountains. Also most of the land is being leased for this project providing an income source and allowing future cattle grazing for farmers.

This type of land in the past sold for less than five hundred an acre not long ago. It was considered unusable or only suitable for agricultural use. It demonstrates that long term land investment can be a patient and lucrative endeavor. There is still an abundance of available vacant land in Kern County and Los Angeles County that is prime for industrial uses like Wind Energy Projects. Many wind tests and planning has been completed over the years, which verifies this area as a prime wind energy location. In this case the permitting process took three years and the project had numerous environment hurdles to overcome. In the end the Alta project will begin.

The 1031 Exchange Process Taken Step by Step

2010-07-18T15:13:00.000-07:00

1. You will need to set up an exchange account with an authorized 1031 exchange firm. The 1031 account has to be opened before the close of escrow on the property being sold. It can be done in a rush, but it is best to have this process planned in advance with the escrow company.

2. Write up the 1031 Exchange terminology in the sales contract or escrow instructions. The appropriate 1031 language should be added to the sales contract or escrow instructions for the property being sold. The exchange company can draw up the proper language.

3. Execute the exchange agreement with the escrow company and exchange firm with the necessary signatures and documents.

4. A like kind replacement property must be located within forty five days. A like kind property essentially means real estate for real estate. This like kind property must be located within forty five days per the IRS requirement. Once the replacement property has been identified then the sale and escrow must be completed within six months.

5. Forward the 45 day identification letter. This identification letter has to be submitted within forty five days, and the replacement property must be located and identified. This is typically the most difficult part since you need to secure the acquisition of a second property within this six week period.

6. Forward funds for deposits, this can be done from a 1031 exchange account. There is typically a form from the 1031 exchange company. It is also possible for the deposit to come from your personal account with a reimbursement later.

7. Then you must complete the execution of the escrow documents from both parties on your replacement property, and fund the purchase with your prior closed escrow funds. If the replacement property requires a loan, or it is an income property then other steps maybe needed. Thus identifying an experienced 1031 firm will assist in more complicated exchanges. Also additional funds may be needed if the replacement property has higher value then the prior sold property. Again the 1031 exchange firm can assist with these additional steps.

Solar Power Company Gets Approval to Implement Its Development Plan on Rural Residential Los Angeles County Land

2010-07-10T14:37:00.000-07:00

A rectangular shaped parcel of just over 200 acres at 100th Street West and Ave H has won preliminary approval for solar development by the City of Lancaster planning commission. TA High Desert LLC (Tuusso Energy) plans to construct of a 20 megawatt solar photovoltaic electric generation facility on rural residential zoned land in Los Angeles County. This land has been typically vacant land or farm land, but the green energy economy has changed the future for rural Los Angeles land.
The location is designated NU (Non-Urban Residential) by the General Plan and is zoned RR 2.5 (Rural Residential 2.5 one dwelling unit per 2.5 acres), and this site is currently unused. This proposed project would operate year round with a production of up to 20 megawatts of renewable electric power during daytime hours. Tuusso Energy has a 20 year agreement with Southern California Edison to supply electricity generated by the proposed project. The project needs to clear a few environmental, biological, and mitigation steps.
The environmental review documents have disclosed no significant adverse impacts resulting from the proposed project after mitigation measures have been applied.
The photovoltaic panels and trackers are silent and low profile of six feet to eight feet depending on the position of the sun, so visual impact would be minimal. In order to further reduce any impacts, Tuusso Energy would install a line of trees along Avenue I and H, 100th Street West, and 97th Street West that would provide additional screening of the site. Additionally, two biological resource surveys were conducted for the location which found approximately 160 acres of potential foraging habitat within 10 miles of a hawk’s nest, thus the removal of the 200 acres of potential foraging habitat would be minimal. Also, mitigation measures are required to ensure that impacts to biological resources remain less than significant. Once these mitigation measures are taken the board found that the potential impacts to any special status species would be reduced. They also indicated that the projects construction and materials will not pose any environmental hazard to the local community.
This project appears to have met all the necessary requirements for implementation, and it was done in under a year. The landscape of Antelope Valley has been rapidly changing, and this exercise shows the potential for profits outside of typically residential building can be found in the valley as the State moves to green energy.

Antelope Valley Groundwater Case Flows On…

2010-06-19T10:13:00.000-07:00

There is a class action lawsuit, which is about a land owners right to pump groundwater in the Antelope Valley. This lawsuit addresses a property owner’s right to pump their own water beneath their property. Currently State Law allows property owners to pump and use groundwater beneath the surface on their land. In Los Angeles County, however, the naturally available supply of water in the Antelope Valley Basin may not be adequate to satisfy everyone who wants to use that water.
The suit is the Willis Class Action which requests the Court to rule that private landowners in the Antelope Valley who do not presently pump water on their properties retain the right to use the water underlying their properties. The Court has not yet ruled on these claims. This will affect land owners who wish to build custom homes on county land, but not city residents. Most of Antelope Valley is rural residential and agricultural land, so the ruling targets private land owners and farmers.
The Case Number is 1-05-CV-049053 at Santa Clara County Court under Judge Komar, with the next calendar date set for July 15, 2010. The schedule indicates that this will be the deadline for expert witness disclosure and exchange of expert witness information, including any reports prepared by such experts, and any party who intends to call non-expert witnesses to provide percipient testimony must file their statements listing such witness(s). The court calendar is set through Sept. 27, 2010 where the Court Trial Phase 3 takes place, (Status of Valley Aquifer and Issue of Overdraft)10 days with all discovery to be completed 30 days before trial and all motions shall be heard no later than 15 days before trial date.
The lawsuit has been dragging on for years now with the essential position by Los Angeles County claiming adverse possession, and rescinding property owner and residents' rights to their own water? We will keep you updated here as this litigation progresses.

The Solar Land Grab Continues As Two Los Angeles County Solar Projects Have Been Purchased by First Solar

2010-06-04T15:45:00.001-07:00

The San Fernando Valley Business Journal has indicated that First Solar Inc. recently acquired a current project undertaken by Nextlight Renewable Power LLC (a solar module company). First Solar is reported to have acquired the project in a deal worth $285 million. The purchase of NextLight Renewable Power project at 170th West at Ave D near Lancaster, Ca. is the latest by First Solar as part of its strategy to acquire companies with projects already in development.
NextLight’s project AV Solar Ranch One is a 230-megawatt photovoltaic solar panel facility west of Lancaster, which they only recently started in late 2009. This project compliments some existing solar facilities that First Solar has in Riverside County and in Blythe. According to First Solar’s press release the Riverside County project will produce enough power for 160,000 homes.

The Antelope Valley Press reported earlier this year that First Solar Inc. had acquired a couple of solar power projects in their early development by Edison Mission Energy, which is the power generation division of Edison International. These two projects acquired by First Solar are photovoltaic projects one near Lake Los Angeles at 240th East at Ave S and the other near Mojave in Kern County.
According to AVPress, Allison Gatlin’s report "They purchased the entire development pipeline," said Bob Steins, public affairs manager for Edison International. The 150-megawatt Gray Butte plant (240th East at S) is in the permitting process with Los Angeles County. These latest acquisitions are private land purchases on previously farmed land. The company has previously purchased public land under the Bureau of Land Management which has fast tracked the permit process. These two projects in Antelope Valley are only in the planning and permitting stages, so the plants can be built to suit First Solar’ project needs. These solar projects should compliment the landscape of Antelope Valley as they will be situated on Los Angeles County Land outside the city limits of Lancaster and Palmdale, Ca. and primarily be invisible to residents.

These solar companies have bought low priced land at the low end of the market paving the way for reduced prices for other land investors. Land investment has been a great hedge against inflation and over the years has proven to be a fantastic long term investment. Ideal developable parcels have been bought by housing and solar companies leaving great opportunities for IRA investments to buy land near these developments.

Vacant Building Gets a New Tenant

2010-05-12T09:37:00.000-07:00

Just last month Macy’s announced it will open a store in Palmdale, CA, beginning in the fall of 2010. The single story location is 110,000-square-feet. Now Macy’s will be located in the Antelope Valley Mall at the former Gottschalk’s location, and this will be Macy’s first presence in the Antelope Valley.
Macy’s press release indicated it will offer a full range of apparel and accessories for women, men and children, as well as housewares, home textiles and luggage, and the store will employ approximately 130 associates.
The previous department store chain Gottschalks Inc had stores in California, Washington, Alaska, Oregon, Nevada and Idaho, but put itself up for sale and then filed to reorganize in a Chapter 11 bankruptcy in January of 2009. The location has been vacant for over a year now, and caused a blight in the mall.
The other anchor stores are JC Penny’s, Sears, and Dillard’s with smaller national chains like Pier 1 Imports, Men’s Wearhouse, and 24-Hour Fitness.
The Mall opened in 1990 and it actually sits above a wash of snow runoff from the neighboring San Gabriel Mountains. Land in this area sold for under a thousand an acre because of the wash, while unencumbered land sold for much much more. The city devised a wash channel via pipelines which now runs beneath today’s Mall. Prior land speculators saw the opportunity back in the 70’s and 80’s as Macy’s has found a new location for their expansion.

160+ acres at 50th Street West & Avenue H, The Development That Didn't

2010-05-01T09:39:00.000-07:00

This large swath of land in Los Angeles County has had a proposed amendment to the General Plan land use from rural residential agricultural land (one dwelling per 2.5 acres) to a proposal for R-7000 urban residential (one dwelling unit per a minimum net area of 7,000 square feet). It would entail a subdivision for 655 single family residential lots in the R-7,000 Zone. The Planning Commission undertook a resolution to adopt the recommendation to deny the General Plan Amendment of zone change. The Planning Commission sent a letter in January requesting a response to the property owner’s engineering department regarding their project. If there was no response then the commission would recommend denial of the project, which had originally begun in October 2004. As there wasn’t an environmental review of the project, hence the property owner’s inaction was the indication that they were giving up their plans. To date no environmental progress has been made, and it cannot move forward without the Environmental Impact Report (EIR). As the project requires the application payment and a redesign of the plans, thus the inaction by the property owner forced the planning commission to deny the zone change.

Many investors may have purchased land in this area in anticipation of the zone change and potential housing track of hundreds of homes. The real estate foreclose rate in Lancaster and Palmdale has been significant, and most of those foreclosed homes have been repurchased by investors for a fraction of their prior value. The outlook for new housing in the valley has curtailed plans by this developer and others as there has been a few mapper’s who have dissolved their plans to develop a number of parcels on the east and west side of Lancaster and Palmdale. A loss for some can be an opportunity for another.

As land prices have dropped then low priced pre-developed land opportunities become available. The most recent low prices in land came after the Internet bubble in 2000 to 2004. Prices increased dramatically after that to the highs of 2006 and 2007. Buying at the end of the recession and selling at the top of the next wave has proved to be prudent for a number of investors. Unfortunately, many investors buy at market highs and sell in desperation when the market is at its lows. This current time frame is a much better period to look into pre-developed land investment. Pre-developed land has the greatest increase in potential value, since undeveloped land is much lower in price. Once development occurs in the area then Commercial and Housing companies need the land based on its proximity to other development. These developers have the funds to buy at $100,000 or more per acre for the right type of property. Today an investor can pay less then half that price. If you are looking for an opportunity for your IRA, or 401k then contact us and we can locate prime opportunity low priced land options.

Antelope Valley Weed Abatement Notice and the Responsibility to the Vacant Land Investor

2010-04-15T17:16:00.000-07:00

Los Angeles County via the Dept. of Agricultural Commissioner Weights and Measures has increased its Annual Weed Abatement Notices. There have been a number of properties in Lancaster and Palmdale California which have gotten this notice for the first time. The Abatement Notice levied to properties when an abundant amount of weeds, brush, neglected vegetation or trash has accumulated on properties. This includes homes and vacant lots. In addition, properties were sited if these weeds are located near a house or structure as they create potential fire hazards to all homes. Specifically in Antelope Valley there is a special notice. If your property has a large amount of tumbleweeds, which can roll onto roads, damage agriculture crops or build up near homes and fences then your property can be sited. If you are sited then the responsibility of the property owner is to clear the dry weeds or brush within one hundred to two hundred feet from a home or structure, and ten feet from a road.

Some owners are getting this notice and they do not have an abundant amount of weeds on the property. It is because of the special information regarding tumbleweeds. Because of environmental factors, inspections and abatement of the current season’s growth of tumbleweeds on parcels in the Antelope Valley will not begin until Oct of 2010. We surmise the Department of Agriculture will wait until the end of the summer season to see if tumbleweeds have rolled onto your property.

There have been hearings in late February for property owners who wish to present objections to their notice. After April 1, 2010 the County will be inspecting properties for excessive weeds and brush. If property owners have not inspected their parcels and cleared bush per the notice then the county will begin enforcement of the notice and clear excessive weeds, and the cost of the county abatement will be assessed to the property tax bill. If the property owner has not cleared the property themselves by March 15, 2010 then the county abatement team is on its way. The county has already assessed an inspection fee of $45 even if the property owner cleared the brush themselves. If the county hires independent firms to enforce the notice then the abatement fee will be much more expensive then if the property owner were to maintain their own parcel. In addition, if you received the notice and sold the property then the sited property owner will be liable for the assessed abatement fees, and not the new owner.

These abatement notices may increase over the years as Antelope Valley grows, so it is important to view your property periodically and maintain any debris and vegetation. The debris issue is a separate issue as people have used remote parts of the valley as a private dump. The land investor has less issues then the home investor but still must invest with responsibility.

Los Angeles County Attracts Another Renewable Energy Project As Antelope Valley and Agricultural Land Benefit with the Development

2010-03-24T18:15:00.000-07:00

Another Solar company is taking up roots in Antelope Valley. Tuusso Energy headquartered in Seattle Washington with a medium size project, which can power up to 15 thousand homes and connects directly to existing transmission lines. The proposed location is on LA County land and it is a rectangle shaped area at 100th Street West running north to south from Ave H to approximately Ave I-8. This area is just south of the community of Antelope Acres, and it is just north of Edison power lines that cris-cross the western valley. Their technology uses photovoltaic panels which look very similar to rooftop panels. The benefits with photovoltaic’s are that they use a limited amount of water and they are low profile as they stand just a few feet above the ground.

Tuusso’s project proposal has been underway for a year and they are currently conducting environmental studies with Los Angeles County and local government agencies. As part of the environmental impact, they have targeted dormant agricultural land away from any current major development. It is not known if this land has been previously disturbed land, or simply vacant agricultural land. The environmental impact may be the biggest hurdle to overcome as the State and local governments are favorable to renewable energy projects, but environmentalists prefer limited change. The production is expected to begin later this year and run through early 2011. Lancaster Ca. has proposed a number of zoning changes within the city limits to entice alternative energy projects within its boundaries, so many more projects are sure to arise.

This is the fourth and separately planned renewable energy project on LA County land in the Antelope Valley. It is sure to change the landscape dramatically, but change for the valley will be good for the economy and community. The agricultural land targeted is a big bonanza for the long-term land banker. This area was vacant land for decades caught between power lines, and a pocket of custom homes. It further highlights that agricultural zoned pre-developed land provides a great investment opportunity. These Solar Companies are capturing lower real estate prices during this downturn, and it is a good time for new investors to take advantage of this land banking opportunity also.

The City of Lancaster California is Proposing Land Development Changes to Establish Three Separate Mixed Use Zones

2010-03-17T08:38:00.000-07:00

The City of Lancaster, Ca. Planning Department is forwarding new recommendations in conjunction with their 2030 General Plan. The focal point of their recent meeting is to draft new zoning changes for the city, and to incorporate several mixed use proposals. The City of Lancaster, Ca. currently doesn’t have mixed use development, while cohabitating residential and commercial zoning has been implemented in numerous cities across America. A typical mixed use would be street level retail shops on main roads with single family or multiple family dwellings above. Most of Lancaster Ca. has been single family dwellings in proximity to commercial buildings. It has been a typical small town growing without the future planning of the needs of the community. It’s a sort of plan as you grow, instead of planning growth. The mixed use proposal will make Lancaster look more like Orange County’s growth and development, which has been the new normal.

The three proposed mixed use zonings will be Mixed Use-Neighborhood (MU-N), Mixed Use-Commercial (MU-C), and Mixed Use-Employment (MU-E). The mixed use neighborhood zone would incorporate residential housing in close proximity to commercial, offices and services. It would include multi-family housing, such as apartments and condominiums, small-lot single-family subdivisions, and smaller commercial and office space. The streets patterns would allow better traffic flow, and it would offer pedestrian connections, community space with trails and neighborhood parks.

The mixed use commercial would integrate residential and commercial space together. The commercial space would most likely be along major artery streets, with modern landscaping. It will also have multi-storied buildings which must contribute to the areas surroundings. The third zoning change proposal is mixed use employment. This zone is intended to provide an area for non-retail employment in close proximity to residential housing. It would likely include multi-family residential dwellings with office professional, business parks, and some light industrial uses. This zone is not intended for heavier industrial uses.

The two major target areas for this new zoning will be south of Ave H from 20th to 40th Street West, and also along Sierra Hwy and Division south of Ave I. As the city grows so does the opportunity for land investors. We think this is a very positive step toward the future for land buyers in Antelope Valley. Most of these areas are currently vacant land parcels, but it will be a future location for a developer. Many large chain stores wish to locate their business near residential neighborhoods as it has been part of their business model. Land prices today are far less then they were just three years ago, so this is a good time to look at vacant land deals in Antelope Valley.

Los Angeles County Lands Best Renewable Sustainable Project with a Patented Solar Complex built on Pre-Developed Industrial Land

2010-03-06T16:56:00.000-08:00

Power Engineering magazine announced this past December the selection of E-Solar’s Sierra SunTower facility as the winner of "Best Renewable and Sustainable Project" at the 2009 Projects of the Year Awards. This is an annual award where Power Engineering magazine recognizes the world's best projects in the four major categories, gas-fired, coal-fired, nuclear and renewable. The new solar power facility is the first of its kind in California.

E-Solar unveiled Sierra SunTower, which is their 5 MW commercial-scale solar power plant, in August 2009. It is located just 60 miles north of downtown Los Angeles in Lancaster California. The solar complex runs along Avenue G in the northern part of the city. This renewable energy facility captures the suns energy to produce super-heated steam with an average operating temperature of 800°F at a pressure of 900 psi, which it delivers through a turbine generator to Southern California Edison. Their patented technology uses Pre-fabricated modular units that are scalable to fit smaller or larger parcels of land to suit their power client’s requirements. This project was developed on a small parcel of land close to existing transmission lines, and it is the first of several planned in Antelope Valley, California.

This is one part of the City of Lancaster’s 2030 General Plan to create fertile ground for renewable energy projects. The planning department has approved of thousands of additional acres of heavy and light industrial land as a target area for these types of projects. They plan to further expand this area by amending the zoning to absorb rural residential and agricultural zoned land for heavy industrial use. This would be the largest expansion of Los Angeles County land into city zoning in decades. It is also one of the best means for a land investor to get a rapid return on their investment.

It is paramount for land investors and land bankers to buy land near developing areas such as Lancaster and Palmdale California. The closer you are to development the more likely development will reach your parcel. In many cases the initial investment can be more, but the return on investment could be shorter term. We have spoken to vacant land owners who purchased remote desert land far from development and they are unfortunately still holding decades after their initial investment. Don’t let it happen to you, as the real estate slogan goes location, location, location also applies to pre-developed land.

City Of Lancaster Proposing New Zoning Changes As Part of the 2030 General Plan

2010-02-20T18:29:00.000-08:00

The City of Lancaster has proposed zoning changes throughout the city limits. Some target areas will be the area south of Avenue G to H which has been proposed to be heavy industrial and it will run from Hwy 14 east to Division and then it will run south of H along Sierra Hwy to Ave I. There will also be almost a square mile of light industrial from Hwy 14 west to 20th West from H to I. They also target great deal of light and heavy industrial from Hwy 14 east to Challenger within avenues L to M. The industrial zoning changes are designed for Solar and Wind Energy firms to entice them to locate within the city of Lancaster. There will also be more R-7000 and R-10,000 residential from Ave I south and Hwy 14 to 70th Street West. A good amount of this area has been RR 2.5 only allowing 1 home per 2 acres, but with R-7000 zoning developers can build track homes of one house per 7000 square feet. In addition, the land surrounding the County Jail and Hospital at West Ave I and J will be virtually surrounded by light industrial zoning and commercial at 50th W at J.

This new zoning draft review took place Feb. 16th at the Lancaster Planning Commission meeting. It is part of the City of Lancaster 2030 General Plan. Another part of the proposal is for mixed used (MU) zoning adopted as part of the overall plan. A large portion of this proposed mixed use will be from 20th to 35th West and from H to I. The public will be allowed to review the draft proposal and the earliest the mixed use zoning can be adopted would be April of this year.
These proposed changes can really change the value of land especially land that is changed from RR 2.5 to R-7000 or R-10,000.
The City of Lancaster seems to be progressive and aggressively toward business growth, which can produce a vibrant economy for the cities future.
We will keep you updated as the plans progress, so stay tuned to our reports.

Los Angeles County Rural land Soon to become a Race Track?

2010-02-06T18:10:00.000-08:00

The proposed racetrack is approaching the finish line. The Fairmont Butte Motor Sports Park (fairmontbuttemotorsportspark.com) has been proposed on 320 acres of land at 150th Street West at Hwy 138. The property owner and founder is Thomas E. Malloy. The Los Angeles County planning commission recently recommended the project at the September 2009 meeting. There are several more hurdles to jump, but the meeting this coming Saturday February 6th at the Lancaster Regional Library may go a long way to making this project a reality.

The proposed track is situated on privately owned land in Antelope Valley. Most of this area is vacant unused land or farmland in the remote area west of Lancaster, Ca. The track will be open to the public with no memberships required. The plan is not for commercial use, but for private motor car enthusiasts, car clubs, and racing organizations. The track will carve around Fairmont Butte just west of the poppy preserve.

The plans indicate that the racetrack would only use 140 of the available acreage and operate only during the daytime, and there would be no grandstands, allowing for only a few spectators. Racing would only take place on weekends and on occasional Fridays. The main obstructions that may upend the proposal are environmental issues. The few nearby residents could be exposed to excessive noise once it is up and running. It could also affect the area's wildlife, which includes lizards, badgers and burrowing owls, and it will be only a mile from the state protected wildflower poppy preserve. Environmentalists also indicated this area is also home to seasonal wildflowers, California buckwheat scrub and purple needle grass typically grow there. The racetrack group indicates that they will minimized these environmental issues by restricting noise, limiting racing and traffic and independent studies show that while there will be some impact to habitat, there would be no impact to wildlife movement or to the Poppy Reserve. In addition, the Fairmont Butte offers a natural barrier to noise and helps maintain the areas natural beauty.

There are also several Solar power companies forwarding proposals to develop this area, so the terrain will likely change rapidly in the coming years. Most private land owners and investors have looked for development and changes in this primarily rural vacant land. Property prices will likely increase in the coming years due to the coming growth, and we will keep you informed to these developments.

How Mitigation Can Benefit the Vacant land Investor and the Environment

2010-01-23T14:53:00.000-08:00

Environmental mitigation describes projects or programs which are intended to offset development impacts to an existing natural resource like wetlands, endangered species, rivers and streams. Environmental mitigation is typically a part of an environmental crediting system established by governing bodies like the BLM (Bureau of Land Management) which allocates debits and credits. It is similar to the government proposed cap and trade system to offset global warming. A debit to the environment would occur when a housing developer, or Wind and Solar Company plans to develop land for commercial purposes. A debit occurs when a natural resource has been destroyed or severely impaired, while a credit is given when a natural resource has been deemed to be improved or preserved. So, when a business or individual has a debit to the environment then they are required to purchase a credit. There is also mitigation banking which is typically created in advance for multiple commercial parties when compensation credits cannot be achieved at the development site. Mitigation is a friendlier alternative to restrictive environmental laws, since development can proceed in exchange for compensation to preserve or repair a natural environment. Mitigation can also be beneficial to land owners, since some land like wash land or mountain land is not developable, but it is more suitable for mitigation. This increases the value of some non-developable land miles from development.
In Northern Los Angeles County and San Bernardino County some renewable energy companies may be required to purchase mitigation land if their projects are on BLM or other undisturbed land, which may encroach within prime desert tortoise and Mojave ground squirrel territories. The desert tortoise roams much of the desert in San Bernardino County, which will curtail any development within their habitat. Much of this land is privately owned, and may be designated as mitigation land by the government. The Solar Farm developers may be forced to buy endangered species land before a building permit is issued. This is another example where land banking is beneficial to the long term investor. Many investors think that their property will primarily increase in value due to urban development upon their property, but in this case virtually worthless desert land becomes a needed commodity to the technological advances of solar energy companies. The new growth in Antelope Valley and San Bernardino Counties is increasingly becoming green energy development, and the wise patient land investor can benefit and preserve the environment at the same time.

The City of Lancaster Planning Department is Proposing Zoning Changes to Further Wind and Solar Projects Expansion in Antelope Valley

2010-01-09T12:04:00.000-08:00

Just this past December the City of Lancaster Planning Commission reviewed a proposal to amend the zoning ordinance to allow for wind energy uses in commercial and industrial zones, and expand solar outside of these zones. The planning department is recommending to Adopt Resolution No. 09-37 for the City Councils approval which would amend the Zoning Ordinance (Title 17 of the Lancaster Municipal Code). The order would provide regulations for co-location of small wind energy systems in commercial and industrial zones with the addition of Sections 17.12.070.W, 17.16.060.A.14, and Section 17.40.690, and Section 17.08.070.Z would allow solar electrical generating plants in rural residential zones subject to a conditional use permit. Currently, the Zoning Ordinance allows solar electrical generating plants only in heavy industrial zones with a director’s review application. In order to address the increasing demand for alternative energy, the planning staff is recommending this addition to Section 17.08.070.Z.

The City’s Zoning Ordinance is intended as a regulatory document to implement the goals, policies and objectives contained within the City’s General Plan. By approving the proposed amendments to the current Zoning Ordinance, it would further implement the policies set forth in the General Plan by allowing alternative small energy systems in the commercial and industrial zones, as well as utilizing rural residential areas to further the development of solar power plants.

This proposal and a number of other proposals shows the City of Lancaster’s increasing interest and demand to expand alternative energy projects within the city limits. There are a number of solar projects taking place outside the city limits on unincorporated Los Angeles County land. This proposal by the planning department would provide the first wind energy project within the city limits. Most of the wind energy projects are in Tehachapi, in Kern County north of Los Angeles. The proposal would also create tax revenue for the City of Lancaster, which the city doesn’t receive with County projects. Currently, the City of Lancaster has very limited heavy industrial zoning, so expanding solar projects to operate in rural residential zones expands a much wider net for solar companies. Owners of vacant unused land within the city limits of Lancaster should see a price increase for their property in the coming years if this plan gets final approval. We will keep you posted with the progress.

Antelope Valley High Desert Oasis Launches Space Tourism at Mojave Air and Space Port

2009-12-16T10:23:00.000-08:00

Antelope Valley is adding more high tech to its Solar and Wind technology, and Stealth Bomber Testing. Virgin Galactic unveils Enterprise-SpaceShipTwo as its first of five potential suborbital planes. SpaceShipTwo measures 60 feet long and it is intended to carry two pilots and six passengers, who will pay for a 2 1/2 hour flight into suborbital space, to experience weightlessness and see the curvature of the Earth.

The unveiling is a first look at space tourism and was attended by some of the 300 or so potential passengers who have already put down a deposit of $20,000 toward the $200,000 outlay. It took place in California's Mojave Desert at the Mojave Air and Space Port in the center of Mojave, Ca. between Hwy 14 and Hwy 58 and just north of Edward Airforce Base. It is a test site for new aircraft technology, and near an array of mothballed aircraft seen on the horizon. The audience included Gov. Arnold Schwarzenegger, Princess Beatrice, and Sir Richard Branson "This will be the start of commercial space travel."You become the astronaut." Branson said.

SpaceShipTwo uses all the same basic technology, carbon composite construction and design as the first version SpaceShipOne, but it is around twice as large as that vehicle. Each passenger gets the same seating position with two large windows, one side window and one overhead, so that, if you don't want to float free in space, and you'd rather just remain in your seat, you still get a great chance to see the view.

According to Virgin Galactics website the mothership WhiteKnightTwo-Eve and SpaceShipTwo were designed by Burt Rutan, since SpaceShipTwo is larger then the mothership which was also enlarged with two fuselages with a long undercarriage. Both of WhiteKnightTwo's fuselages have a dihedral wing and the spaceship will be placed centrally between them, where the wing tips are joined at the highest point of the elongated 'W-shape' wing. With its fuselages some 50ft apart, WhiteKnightTwo's payload area is large and readily accessible from the ground.

News sources indicate that flight testing is expected to begin early next year. First flights will be captive carry flights with SpaceShipTwo staying attached to WhiteKnightTwo. After that the flight test team will begin glide flights in SpaceShipTwo and eventually powered flights with the rocket motor. Once flight testing is complete and the government regulations have been met, Virgin Galactic plans to regularly fly passengers into space from the company’s New Mexico space port. The $450 million project will eventually see six commercial vessels shuttling into space. The Enterprise-SpaceShipTwo will be carried to an altitude of 11 miles by a twin-hulled Mothership called WhiteKnightTwo-Eve, named after Sir Richard's mother. It will then release and fire its own hybrid rocket to propel it into space, accelerating to 2,500mph and soaring to 65 miles above the Earth. After hitting the top of its trajectory, the 22-yard-long ship will fall back to Earth, gliding the last part of the way before landing much like a plane.
Sir Richard indicated that by 2020 he hoped there would be as many as five competing spaceship companies and the price of a ticket could be driven down enough for hundreds of thousands of passengers to go into space. Experts say that by traveling into near-Earth orbit, the length of inter-continental flights could be cut dramatically, so a flight from London to Sydney could last just two hours. It is exciting high technology news for this high desert oasis.

Edison Proposes Solar Power Plant outside of Lake Los Angeles

2009-12-03T11:55:00.000-08:00

The Antelope Valley Press has reported that Southern California Edison under its power generation division Edison Mission Energy is planning a150 megawatt photovoltaic plant in Antelope Valley, Ca. Edison Mission Energy has solar power operations in Mojave Ca. in Kern County presently. They are looking to expand south into the eastern edge of Los Angeles County at the San Bernardino County line. The proposed site is currently on presently or previously farmed agricultural land near 240th street East at Ave S.

Edison Mission Energy looks like they have targeted previously disturbed land, which should enable them to leap major environmental issues. The request for development has already begun earlier this summer, and they hope for final approval by late 2010. This project also uses photovoltaic technology which doesn’t require water, and the solar panels will only rise a few feet above the ground. It is a strategy that other solar power companies have used that can fast track the process, and limits the environmental impact.

The Wind Farms of Tehachapi and Solar Plants of Mojave, and Lancaster have become a green zone in the new energy economy. These areas were primarily vacant pre-developed land and have increased in value with the housing boom earlier this decade and now a green energy renaissance has begun. Just a decade ago you could buy raw land in these areas for as low as $500 to $1000 an acre, and now even in this current down real estate market the prices have increased a minimum of one hundred percent. Most of this land has been undesirable land for building or development with the rolling hills of Tehachapi and arid desert land in Lancaster far from current development, but now these Alternative Energy Companies and Edison have taken root. These companies are taking advantage of low priced land and looking toward the future. With the potential population growth and the alternative energy development the Antelope Valley’s future is taking shape. We have invested in pre-developed land in these areas and we have taken advantage of the news and development of the area these past five years. We also encourage our investors to take a closer view at similar prudent opportunities.

Gold and California Vacant Land as an Investment Hedge against Inflation

2009-11-15T09:21:00.000-08:00

Gold and precious metals have been and still are the best hedge against inflation. But you have to look at precious metals as a paper asset versus silver coins and gold bars. Initially, what is a hedge against inflation? An inflation hedge is an asset that loses little value in periods of rising prices. It therefore holds its value and purchasing power during an inflationary period. Investors expecting inflation will typically buy this asset type to hedge against rising prices. Precious metals will actually increase in value since they are such an ideal inflation hedge.
The best way to address this question is to look at real assets versus financial assets. Real assets have intrinsic value, which is value of their own. They have direct or indirect usefulness like cars, wheat, corn, gold, real estate, land, and even appliances etc. Financial assets are a claim of profit of a firm, family or government. They would be stocks, bonds, mortgages, trust funds and the likes. Generally, real assets like gold, vacant land, and other commodities are a better hedge against inflation. These real assets have a value of their own, and are not devalued when everything else is inflating in price. Ideal hedges should hold their value over time and not lose their value. Produce and cars lose value over time, while precious metals (gold, silver, palladium), and vacant land and even wine will hold its value.
Another key element of an inflation hedge is its marketability. Is there a market for the commodity at virtually any given time? There is a market for soybeans, heating oil, gold and land, but things like shoes, furniture, and stocks have a limited market, and re-sale market. Another feature of a good hedge is its divisibility. Essentially can the asset be broken down into smaller portions? A house, car and land can not be broken down, but gold, gas, and agricultural products can be.
The best hedge against inflation has been and will continue to be gold, but we are referring to the hard asset of coins, bars, and even a mine that you own. Holding gold in stocks, ETF’s, or shares in a gold or silver mine is a financial asset and not a good hedge. Real Estate like a rental house, apartment, or vacant land is a good hedge but not the best, since it is not as marketable and not divisible like gold and other commodities.
The problem is the availability of gold coins and bars and nobody but a farmer will hold perishable commodities like wheat, or corn in their back yard. We think vacant land is a good alternative as an inflation hedge for investors since it is inexpensive, available and it will hold its value until inflation ebbs. It also doesn’t need to be maintained, will not deteriorate, and it can’t be rustled or stolen.

The General Eminent Domain process by a Government Agency on your Property

2009-11-04T21:19:00.001-08:00

Typically, when the government wishes to take your property by eminent domain, you can expect them to engage in the following steps in about the following order. This is a straight forward process, but untypical cases do occur. The government may also be forced to pay moving or lease expenses as part of the process, but certainly not required in vacant land eminent domain. There has been and will be a number of eminent domain actions by Los Angeles County in Antelope Valley in the recent past and many proposals for the future.

The government agency will contact you usually by mail to express interest in your property and scheduling an appraisal or environmental assessment of the property.
They will then appraise the property, and any improvements. The appraiser will be by their approval though. You can engage your own appraiser at the government expense also. Once appraised the government agency will make an offer to purchase the property. They will include a summary of the appraisal which they use to make their offer. A subsequent notice of public hearing to adopt "resolution of necessity" to acquire your property by eminent domain will begin. A Public hearing is announced and held to adopt the "resolution of necessity" to acquire your property by eminent domain. The Eminent domain case is filed in the court with jurisdiction and a notice is served to you the property owner. A deposit by agency of the probable amount of just compensation is paid into court and motion by agency for early possession of the property. This would be the appraiser’s figure, which they likely offered you before they took you to court. Then discovery procedure proceeds where any depositions and documents are gathered. This is where you the property owner provide your appraiser documentation. At this point both sides are attempting to get the fair market value. The government attempts to get an agreed settlement on the fair market value before going to trial. You should have a good case for more money before the last step which is the trial date. If settlement cannot be reached, then a trial of the eminent domain takes place before a jury who will determine for both parties the expected fair market value. The jury returns verdict and judgment is disclosed. The government agency then will compensate the property owner the jury’s judgment of the fair market value.

In most cases a settlement is agreed to and completed before a trial. Eminent domain can be desirable and undesirable for the property owner. If you look at real estate as a commodity then getting fair market value for the benefit of public use is a very good exchange. But if you are losing a home that has been a anchor for your family, or a business which you grew from the ground up then eminent domain can be a bitter pill, and anything but fair.

City Of Lancaster to Annex 7000 Acres of Los Angeles County Land

2009-10-18T12:29:00.000-07:00

Currently L A County owned land is the target area for the City of Lancaster. The seven thousand acres of land is situated north of the city limits of Lancaster. The new area would border from West to East Hwy 14 to 20th Street East and from South to North from Avenues G and H to Avenue E. Mayor Rex Parris indicated that the land within the current city limits are becoming more developed, so now is the opportunity to continue the city’s growth by incorporating new land into the city.

According to city staff at the city council meeting this past summer the annexation is a twofold benefit. Firstly, it will allow the city to better manage their Waste Management. Currently the landfill lies outside the city limits so this will enable the city to better manage their waste resources. The area will also allow space for current and future solar energy plants. This unincorporated area is mainly flat topography which creates uncontained rain water to be wasted. The proposal enables the city to improve drainage, prevent flooding, and collect the water for recyclable usage. It in turn creates solar energy production interests to work together within the city limits and offer solar and alternative energy solutions for Lancaster.

E-solar could be a main benefactor of the plan, since they require water resources to be heated by their panels, which then produces the electric power. It is a green win win solution since the city will be able to trap the currently uncontained water and provide alternative energy for residents. The city of Lancaster is currently planning a similar project called the Recycle Recharge Project at 60th Street at F in cooperation with E-Solar.
This project will recycle rainwater throughout the city and provide recycled water for E-Solar and residents while the remainder will be recharged through natural aquifers in the area.

The annexation process will need to get environmental impact approval, and then if the city council approves the project then the proposal goes to the County’s Local Agency Formation Commission (LAFCO). LAFCO will evaluate the proposal, review it with residents and decide if it is within the best interest of the area concerned. This process may take six to nine month’s.

The annexation is a major boost for land investors, since you can buy land now at lower prices and benefit with new zoning changes from county agriculture land to industrial and commercial zoning and development of the area. The opportunity provides inside information to get involved in a lower risk speculative land investment. We are taking advantage of the opportunity this annexation projects, and we urge savvy investors to do likewise.

Green Acres is Centennial Developments High Desert Plan

2009-10-03T12:44:00.000-07:00

Centennial Development is a planned self sustained new development on Tejon Ranch, which is situated at 300th West at Hwy 138 Ave D in western Antelope Valley. Tejon Ranch will preserve 240,000 acres of their ranch in an agreement with environmental groups this past May. In exchange these environmentalists will not stand in the way of Centennials planned development of up to 20,000 homes in the designated area.

The development is planned with a green theme. Centennials news release indicates there will be 8600 acres set aside just for open space, and their compact village centers will accommodate mix use development of commercial, single family residential, apartments with a green homogeneous environment. Residents will be within a half mile of neighborhood parks, and town centers. They will be designed to accommodate bicycles and cars, with a transit system to enable access to LA County mass transit. It is sort of the anti LA. Los Angeles County present design since 1950 has been no design and no mass transit at all. If you don’t have a car you simply can’t live. The result is traffic congestion smog, and very few parks.

Centennial anticipates better energy conservation in their homes with lower water consumption and watershed management. The homes and buildings will be designed with better lighting features for efficient energy consumption. They plan to use recycled water for landscaping and designated recycling areas for residential and commercial disposable materials. This will also reduce home and building monthly expenses. It will be built over 20 years to take advantage of new technologies over time. The overall plan includes its own police and fire departments, schools, markets, with a specific plan for the essentially green gated community.

This is a far better and different plan then current developer’s who buy the land, create a tentative tract map, build and sell the homes and move onto the next target. This new green designed Centennial community could be an example for the future developers as a conscientious plan and a self sustained environment with less impact on the current and future terrain. It should also highlight and increase the value of property in the surrounding area on Antelope Valley’s far west side.

We have and can locate vacant land opportunities in Lancaster and Palmdale California in the pre-development phases as a low cost investment. Investors can take advantage now and buy land and wait to receive increased property value in the post-development phase.

Buy Land and Sell Half of it Immediately for Your Purchase Price, that’s the California Way

2009-09-20T18:14:00.000-07:00

The Los Angeles Times recently reported that a renewable energy venture firm won a bid to purchase a potential wind farm site near Bakersfield, California in Kern County. The land site known as Onyx Ranch is in the Tehachapi Mountains and is a prime location for a Wind Farm. The winning bidder was by Renewable Resources Group who outbid the Los Angeles County Department of Water and Power with a bid of $48 million. They then offered to sell it to the DWP for $65 million to use half of the property, but the DWP decline the offer.

The venture partner group then located another suitor in the City of Vernon which has its own electric utility and is also in Los Angeles County. They purchased about half the property for $42 million. Now the DWP is looking to purchase the land from the city of Vernon, or take them to court. The Mayor of Los Angeles Villaraigosa has pledged to make Los Angeles “the greenest big city in America.”, but he will need places like Onyx Ranch and Antelope Valley to shoulder the Counties Wind and Solar needs.

There seems to be “an inside job” surrounding this deal, since the founder of Renewable Resources Group J. Ari Swiller was Mayor Villaraigosa’s campaign manager and the Deputy Mayor David Freeman helped found Renewable Resources. The Los Angeles Times reports that Mr. Swiller indicated that he didn’t know that the DWP was interested in the property. Looks like if the DWP really wants the property then they will have to pay more now then they offered before, and apply eminent domain on the 30,000 acres to prevent other from developing the site. The end result is a higher cost to the consumer.

Renewable Resource Group is a shrewd investor who bought land that is essentially unusable until the State imposed the mandate last November for 33% of all energy to be from renewable resources. It also shows there are still opportunities in land investment in a slow real estate market. The right type of land that aligns with future specific plans can land an investor in the green.

Rural Land as an Alternative Investment in the New Green Energy Economy

2009-09-06T10:18:00.000-07:00

There has been a number of development proposals for the vacant land near the Antelope Valley Poppy Reserve. In 2005 there was a proposal from Scottish Power to develop Wind Energy, but the neighborhood disliked the idea of large Wind Towers on the horizon. That enterprise appears to be long dead. In addition, there has been a proposal working its way through LA County Planning Commission for a NASCAR Style Race Track at 150th Street West and Ave D. The neighbors have been fighting that proposal as well due to noise and other issues, but it has been the hottest ticket on the west side until now.

A new plan is shedding light on the poppy reserve. Nextlight Renewable Power of San Francisco is planning a solar sight called AV Solar Ranch One. This proposed development is targeted for 170th West at Ave D. The company uses photovoltaic panels which turn sunlight into electricity. They operate on a track so the panels move with the sun, and the energy produced will connect to Southern California Edison. This consigns with California law which mandates up to 33% of the States Energy to be from alternative sources. Edison is already expanding their power-lines that run through the region, and the proposal appears to be on track with residents as the Antelope Acres Town Council unanimously approved the plan. Nextlight’s news release targets the environment impact studies to be approved by April of next year. They hope for construction to begin by October of 2010 and energy production by 2011. This project will certainly change the landscape of the area, which has been primarily vacant unused land. It shouldn’t affect the poppy reserve though, since the site is north of Fairmount Butte. Also, it is not part of the counties ecological reserve where Joshua Trees and other plant and animal life is protected.

At least two solar energy companies are now taking advantage of the suns consistent output in the Antelope Valley, and the availability of low priced land.We have been telling our clients and prospective investors that they need to buy land near a large metropolitan area in the path of growth,Northern Los Angeles County certainly fits that model. The proposed solar development and the continued focus of the State and Federal governments to support alternative energy sources will create a new economy. Historically, new economies have taken us out of recessions, like the recent Dotcom and Real Estate booms which both eventually went bust. The new “Green Energy Economy” looks like it will be the next boom but with lasting implications. It will change the way we use energy and resources, and the Obama Administration is intent on its implementation with Cap and Trade regulation. The green boom ground zero is in the Antelope Valley, so stay tuned for future developments.

Land Zoning Targets for Solar Companies in Los Angeles County

2009-08-15T10:54:00.000-07:00

There are at least two solar companies (Nextlight and E-Solar) planning operations of large solar plants in Antelope Valley in Northern Los Angeles County. NextLight is planning a large project at 170th West at Ave D (AV Solar Ranch One).
Most of the area outside of the city limits of Lancaster and Palmdale is zoned rural residential and agricultural land. This allows a single family residence within a parcel of 2 acres or more. It also allows for agricultural uses such as livestock, and crop farming. Agricultural zoning is further broken down into A1 and A2. A1 allows for light agricultural and A2 is heavy agriculture. Heavy agriculture zoning requires at least 5 acres minimum.
So how are these Solar Enterprises rapidly and economically getting around constructing an energy facility on rural agricultural land? Typically there would be an environment impact report needed with permits, community forums and the list goes on. These solar companies have targeted previously disturbed land, or land that has been farmed. Farmers have already tilled the land for years, so any endangered wildlife have found new homes and the land has been partially developed. In Nextlights case they use photovoltaic technology, so they use very little water, and the panels are only a few feet above the ground. In E-Solar’s case they use mirrors to reflect the suns raze on a water tower. E-Solar is attempting to solve their water needs by working an agreement with the City of Lancaster to use recycled water.
Both companies have solved a portion of their environment impact by buying A2 zoned land on the western portion of the valley. There are also two solar projects currently in the city of Lancaster at Division and G and an upcoming one at Sierra Hwy and avenue M.
This scenario is a great example of what we have been saying about landbanking. Rural residential land owned by farmers or investors overtime turns into needed space for a growing metropolis. Landbanking is a long term and sometimes short term investment for wealth. Land if purchased near growth and at a reasonable price can be a low risk investment as a retirement vehicle and diversified investment.

Centennial Development Forms Agreement with Local School District

2009-07-29T19:27:00.000-07:00

Centennial Founders have formed an agreement with the Gorman School District.
Centennial development is planning a self reliant community on the far-west side of Antelope Valley neat 300th street West, and just a few miles east of the community of Gorman. The development is proposed to include up to 20,000 homes, a business district, medical facilities, as well as, cultural recreation services and schools. The agreement with the Gorman School District goes a long way to create this oasis in the valley. Centennial Development will be situated about thirty miles west of Lancaster, Ca. and just east of Hwy 5 with easy access to Burbank and Los Angeles and Bakersfield in Kern County. It is a privately funded self supported community with a specific plan for growth, and housing. Their master plan will include single family homes, condominiums, town homes and thousands of rental properties.

The agreement with the school district, according to their recent press release will include $233 million in investment to complete the educational facilities for Kindergarten through 8th grade. This master plan for the initial school is set to be completed by 2013. Centennial already has an agreement with Antelope Valley Union High School District to provide two high schools with an estimate cost of $254 million.

This private development appears to be on track, and it will positively transform the area near Gorman. This area is primarily vacant unused land or farmland situated at the border with Kern County, and overlooking the San Gabriel Mountains. There is access via Hwy 138 which runs from Hwy 5 east to Lancaster and Palmdale. Los Angeles County’s future growth will be in Antelope Valley, as this remains the most abundant available undeveloped land in the county. The plan by Centennial has already been approved by the county and by an earlier agreement with environmentalist. We will keep you informed with this development and other positive developments for Antelope Valley’s growth.

City of Lancaster and Solar Company in joint agreement to develop Recycle Recharge Station in Fox Field Industrial Corridor

2009-07-14T19:47:00.000-07:00

The Antelope Valley Press recently reported an agreement with the City Council of Lancaster and E-Solar, a producer of modular solar thermal power plants. The plan is to develop a means to recycle city water, which E-Solar uses for cooling their solar towers. E-Solar has plans to develop a prototype plant in the city of Lancaster, and a larger one on county land on the far west side near Neenach. Press reports indicate that under the terms of the agreement E-Solar will support some major expenses on behalf of the city.
The company will forward $500k to the design and environmental impact documents for the Lancaster Recycled Water Recharge Pilot Project, at 60th Street West and Avenue F. They will also contribute up to $1.5 million for construction of a pump and for extending the existing pipelines. This pipeline will provide recycled water service for the city. Los Angeles County owns one hundred acres in Fox Field at 60th West at Ave F to F-4 which is the target area for development. The recycled water will be treated to a high degree of cleansing called tertiary treatment which will then be used to recharge the aquifer beneath the Antelope Valley for nature’s further purification. E-Solar will be instrumental in design and construction of the transmission pipelines and a pumping station which will then be dedicated to the city once completed.
The agreement has been initially approved by the city council and Mayor Parris. The Mayor indicated agreements and permits have been achieved to initiate the process.
E-Solar has a pilot solar power plant in Lancaster at Avenue G and Division Street and it is expected to go online this year. In addition, they are proposing to build a larger plant in Antelope Valley that will rival the energy output of Hoover Dam.
Solar companies have selected Antelope Valley recently due to a willing City like Lancaster, and available low priced land that has been primarily vacant near the metropolis of Los Angeles County. The solar growth is in line with the State of California's mandate to produce 33% of power from non-fossil fuel sources.
Vacantlanddeals owns a property for sale which may be part of or at minimum next to this proposed water recycling and irrigation area. Our parcel is 5 acres at 62nd West at Ave F-4, just south of the 100 acres owned by Los Angeles County. This property is for sale at the lowest price range of Fox Field, and it is clearly in the path of near term development. Contact us for more details on this industrial zone parcel, or other properties we have. info@vacantlanddeals.com

Solar LA

2009-07-01T09:45:00.000-07:00

There have been various news reports and press releases regarding an expansion of Solar Energy production in the Southwest and primarily in Los Angeles County. The Mayor of Los Angeles Antonio Villaraigosa in his recent State of LA speech called
The “Solar L.A.” plan “a commitment to Angelenos that the Department of Water and Power will install over 1200 megawatts of solar power over the next five years, ensuring that we become a solar powerhouse.”

Simultaneously, Reuters reported that the U.S. Interior Department this past Monday designated about 670,000 acres of land as potential areas for solar energy production.
"This environmentally sensitive plan will identify appropriate Interior-managed lands that have excellent solar energy potential and limited conflicts with wildlife, other natural resources or land users," Interior Secretary Ken Salazar said.

The land is divided into 24 solar energy zones spread across six western states and could generate nearly 100,000 megawatts of solar electricity. The department will evaluate the possible environmental impacts of solar production in these areas as well as their energy resources. This energy zone will encompass the States of Colorado, Arizona, Nevada, California and New Mexico.

Pasadena Based E-solar announced earlier this week that they have a Solar Project which is projected to produce 192 gigawatt hours of electricity yearly in an agreement with PG&E and NRG Energy's subsidiary AlpineSunTower. Their project will be near Lancaster, California and it is projected to handle the consumption of thirty thousand homes. The plant is scheduled for completion in 2012 according to E-Solar’s website.

In an earlier release, the California Public Utilities Commission approved a twenty year contract between Rosemead based Edison and E-Solar Inc. late last year. The agreement calls for Edison to purchase up to 245 megawatts of electricity from solar power plants built by E-Solar in the northern Antelope Valley.

The power plants will use mirrors to focus sunlight on towers containing water. The water is heated and turned into steam, which powers turbines and generates electricity. These solar power plants are set to come online in early 2012.

There is a significant amount of Wind Energy being produced in the Antelope Valley currently, and now a number of Solar Energy producers are breaking ground in Lancaster and Mojave Ca. Many of these Solar Power companies have been buying land outside Lancaster and Palmdale, Ca. turning this area into a potential thriving Green Energy Zone. This news bodes well for the future economy of Antelope Valley, and for current and future land owners. Stay tuned here for more news on this green energy front.

Biden says California is Prime Target for High Speed Rail Project

2009-06-23T19:35:00.000-07:00

Although California is in a budget crisis, Vice President Joe Biden said that the state's high-speed rail project is well positioned to compete for a large share of the $8 billion that the Obama administration set aside in the American Recovery and Reinvestment Act for rail lines.

The planned high-speed rail system would commute passengers between Los Angeles and San Francisco in 2 hours and 40 minutes. The train would stop in Palmdale, Ca as a major stop, and it would be a major boost for the local economy, making access to the Antelope Valley even easier. California voters approved $9 billion in bonds for the project in the recent November election. The state hopes federal funding and the private sector will complete the expected $34 billion estimated budget, which is only the first phase, which would connect San Francisco to Anaheim. The second phase would further connect a total 800 miles from Sacramento to San Diego traveling primarily down the center of the State via Fresno and Bakersfield. Construction between Anaheim and San Francisco would take at least a decade, according to planners.

Reports indicate that the portion that initially applies to the Recovery Act criteria for high-speed rail would be the rail line between San Francisco to San Jose and Los Angeles to Anaheim. The administration is looking for “shovel ready” opportunities which entail having contracts awarded by 2012 and work completed by 2017.

The potential real estate impact for the Antelope Valley is years away, but it bodes well for towns just outside of major metropolitan areas. There will be vacant land opportunities up and down the State, and this is another example for buying land within the path of growth, and getting there before development creates the greatest percentage of growth. We will see how this all transpires, but the focus of California and the current administration is mass transit and near term employment opportunities.

The Auction Option

2009-06-02T07:55:00.000-07:00

There are a number of ways to buy land, and sell land at a good price range. The MLS (multiple listing services) is the most common means via a broker. A broker can guide the buyer and seller through the process. A new more risky means is buying via an auction. There are many private auctions and county auctions where land is sold. We have found in both private and public auctions the selling prices can be favorable and unfavorable. A buyer needs to be well informed regarding land before potentially losing capital in a bad purchase.

Several years ago during market highs we witnessed a County auction where prices raised twenty to fifty percent above retail. Buyers were overbidding land for greater prices then they could have negotiated from the local MLS. These auctions can create a price frenzy to buy a property that a purchaser feels is the best property on the list. The reality is there are many decent properties available at auctions if you have performed your due diligence. A buyer should have a specific maximum price range and stick to it. We have also found where auctions list parcels which are street easements, ally's, mountain sides, and flood zones. An uninformed buyer will overbid and they are left holding a useless property in many cases.

The professional auction bidders have aerial maps, plat maps, real estate software, and historical information on properties and have viewed the property. The professional investor has typically "walked the property", so they know what they are investing in.

Beware the auction option, since you should know what you are investing in. In many cases you can hire a professional to buy for you at the auction. You pay a small commission and they can do the research and bid for you in you name. You could own a well priced investment, or own an unsellable piece of land. Buyers beware the auction.

Small investments can go a long way in Land Banking

2009-05-20T15:41:00.000-07:00

Do you have twenty thousand?

We have heard from a number of potential real estate investors who have limited savings but not enough to buy a home in high priced states like California. In some cities like Dayton, Ohio, or Oklahoma City you can buy a home for sixty to one hundred thousand and rent it for five hundred a month. After insurance, rental fees, maintenance, travel, and taxes your return on rent will be virtually the same as a low risk CD. We think land banking may be a better risk reward opportunity for small capital investors.

San Fernando Valley California in Los Angeles County is a prime example of a past land banking opportunity. In 1950 the population was 250 thousand and today the Valley's population is 2.7 million according to the US Census. A $40,000 well placed investment there in 1968 would have increased 1000% by 1980 to $400,000. This is a huge return, and granted forty thousand was a larger investment in 1968. But this scenario shows population growth and a well placed investment can provide positive returns.

Antelope Valley in Northern Los Angeles County may provide a similar opportunity. Antelope Valley comprises of two main cities, Lancaster and Palmdale. They have a combined population of approximately 350 thousand today, and an abundance of vacant land. Antelope Valley has approximately 49% of the available pre-developed land in LA County. California's population is expected to grow to 60 million by 2050 and Southern California is expected to have the highest growth rates according to recent reports. This adds up to a great opportunity, which rivals San Fernando Valley results. The area has the potential for population growth, low capital entry point, and availability.

Land is still inexpensive in Antelope Valley and there are a number of ways to locate a well placed investment. We think Vacantlanddeals.com offers some of the best low priced well placed investments that have the potential to produce lucrative returns. They also have land available for an investment of less than twenty thousand.

Where Is The Real Discount Land For Sale?

2009-04-23T11:04:00.000-07:00

Many of our readers and prospective clients have searched on the Internet for discount land. This is easier typed then done. There are a number of vacant land dealers which can be found on a simple Internet search, but who is getting the deal? A number of these land promoters are implying that their parcels are dicounted, but after review we found different results.

We found high prices in our comparison. We looked at three land sites in Lancaster and Palmdale Ca. Two very similar parcels at 190th East at J. The website lacountyland.com is promoting a 2.31 acre property for $39,900, while vacantlanddeals.com promotes a 2.31 acre property next door at 190th East at I-14 for $18,500. Half price for the same property, wow. Another example is where california-land.com is promoting a 2.5 acre property at 65th West at H-8 in Lancaster for $110,000, while vacantlanddeals.com is promoting a similar 5 acre parcel at 62nd West at F-4 for $110,000. That's twice the parcel for the same price. Vacantlanddeals clearly has the discounted land here, and they do promote their prices as ten to twenty percent below the retail market. These are just a couple of examples, but it shows there are drastic differences in pricing on online sites.

Buyers need to do their due diligence on properties before they buy. If there is a property you desire then there may be a similar property elsewhere for a better price. An informed buyer needs to be aware of the land prices to ensure they are getting a good price in an up or down market. They also should do their best to verify all the details regarding a properties zoning, access, title issues, and location to services. We hope to help in this matter by continually informing buyers of opportunities and information that we feel you need to know.

The Solar Wind is Creating Green Energy Land Investment Opportunities in Los Angeles County

2009-04-02T14:31:00.000-07:00

There has been much talk in the news media and the Obama Administration regarding cap and trade, and global warming solutions. You may ask where this green energy momentum will take root. Well we see some indications in California which has been leading the way in the US regarding going green. We have noticed there has been growing development in Antelope Valley with Wind and Solar technologies. E-solar has acquired $130 million in funding from Google.org and Oak Investment Partners and they have signed a power purchase agreement with Southern California Edison Power to build a 245 megawatts solar plant in the Antelope Valley region of Los Angeles County. There will be a series of fully operational plants which will begin production in 2011, and targeted operational by 2012 according to news sources. There have also been large purchases of land in several parts of the Antelope Valley by Solar energy companies over the past year. It is either an E-solar subsidiary or a solar competitor. In addition, Luz Solar Partners has a fully operational solar plant at Kramer Junction near Hwy 58 and Hwy 395 in San Bernardino County for several years now.

If you drive through Tehachapi, California in Northern Antelope Valley you will see many Wind Turbines taking advantage of the heavy winds through the grape vine and Antelope Valley. Lance Dorman of Vacantlanddeals.com said, “This area is slowly and quietly becoming fertile ground for green energy solutions”. We spoke to a recent land buyer who purchased land in Kern County and a Wind Energy Company approached them within months to lease their land to install their turbine towers, Dorman said.

These are real time Land banking opportunities taking place right now in Lancaster and Palmdale California and the growth appears to be just beginning. Real Estate is at market lows, and the push for the nation and globe to go green is in its infancy. Many property owners purchase land in the Antelope Valley a number of years ago if not decades ago, and they are reaping rewards today. If this area continues to be ground zero for green energy technologies then the Land banking turnaround could be much shorter.