BYD Looks to Expansion of Lancaster, CA Plant

BYD started in California in 2011. Their first big order for an electric bus came from the City of Long Beach and now they have 60 new orders from Los Angeles Metro and with University orders from Stanford and Cal Berkeley. The BYD team has since established a manufacturing foothold in the Americas with the procurement of the Lancaster, California plant near Ave H and Division. The electric Bus is their foundation in Lancaster but they are working on production of electric trucks and forklifts, which they have recently started producing. They now have the largest single building in Lancaster with their 450,000 square feet facility with a total staff of 700 with plans of producing 1,500 electric buses per year. We also noticed they purchases 160 acres of land at 50th West at H according to public records. This is the only large parcel of land of this size in this area, but it is currently zoned as Rural Residential once house per 2.5 acres. It is hard to imagine that they bought this land without some zoning concessions from the city of Lancaster. This large parcel is about a mile west of Michaels Distribution center. Gas lines run on Ave H which also has electric power, but there is no water or sewage line to 50th West at this point. BYD purchased this property in 2016, so looks like some changes to the area are coming in the future.

A number of TTM (tentative tract maps) Given Extensions on Residential Zoned Land

Several housing development plans have recently been approved for extensions of tract maps, a 20 acres plot of R-7000 zoned parcels at 67th West at J-8. They are setting up to build 109 single family homes here. Almost 30 acres at 30th East at K was approved for 45 single family homes zoned R-10,000, and 10 acres of 30th East at Nugent zoned R-7000 was also approved for a TTM extension for 39 single family homes. A 10 acre parcel at Lancaster Blvd I-8 at 30th East was approved for 25 single family homes. Along with 32 acres at 15th East at H-8 approving a subdivision of 126 single family homes zoned R-7000 with a 1 year extension. Also recently approved was 41 single family homes on 9.4 acres of R-7000 zoned land for a tentative track map with a one year extension. A 72 acre plot at 52nd West at K-8 was approved, and not to be out done a 30 acre plot of R-7000 zoned parcels was approved at 37th East at I-8 (Lancaster Blvd.) 15 acres at 15th West at K targeting 58 single family homes was granted an extension of a year with another 28 acres at 35th East at J with a TTM approved for 114 single family homes on R-7000 land was extended for two years. The activity and sanctioning of building land is progressing in Lancaster with these recent extensions

Building a Custom Home

A lot of property in Lancaster and Palmdale is advertised as build your dream home. It is easier said than done. First you need to budget for it. A custom home can cost from 150k to $450k with the average being $300k. But first you must buy the land, and the land location is tantamount. Many buyers buy land without power, water, or city services. Once you get the permits to build on such a property then you will need propane tanks for power, drill a well for water and use septic for sewage. All doable tasks. But getting the water 1500 feet below the surface is the first real trick. This is typical in Lancaster and LA County. A popular option is a modular home or prefabricated home. They almost look like a normal home, but you will have to disclose that the house is a modular home, and the selling price may be lower to reflect that. If you choose to build it yourself then you may need estimates for the cost to do so in your area. Plans and designs must be submitted to the city or county and then permits and inspections follow once initially approved. A builder will likely have several inspections along the way. Then you need a construction loan, or a construct to perm loan. A construct to perm loan can involve the land purchase as well. There are numerous factors that affect the cost such as square footage, number of stories, roof type, finishing’s, and issues like if power, water and sewage are available. The propane tank is reasonable if you go the lease option. It may cost only a few hundred to install, and the cost of a simple slab. A septic tank can run $1500 to $4000. A well estimate is $5k to $40k, but on average $25 a foot. The average in Lancaster and Palmdale area is $20-$25k for a well . In the end it may takes years to complete.

City Of Lancaster Approved CUP (Conditional Use Permit) for Solar Power Site

This is likely not a surprise for many but recently Lancaster Planning Commission approved 89± gross acres generally bounded by Avenue I-4, Avenue J, 102nd Street West, and 105th Street West to construct a 10-megawatt photovoltaic solar generating facility on the RR-2.5 (Rural Residential 2.5) Zoned land. The subject location is designated NU (Non-Urban Residential) by the General Plan, zoned RR-2.5 (Rural Residential, minimum lot size 2.5 acres). 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. This is one of many alternative energy sites the City Council has implemented. There are several solar and wind energy programs installed on City facilities, and has become a provider of solar generated electricity to local school districts and other entities. Additionally, the City’s General Plan has several objectives and policies pertaining to alternative energy. These objectives address the need to develop new sources of energy, as well as reduce energy consumption. The proposed project is consistent with the City’s goals as addressed in Policy 3.6.6, which is to Consider and promote the use of alternative energy, such as this one. The solar company is Sustainable power sPower LLC

Clean Energy Firm SunEdison files for Bankruptcy

SunEdison is a solar and wind company that was worth almost $10 billion less than a year ago. It has a mountain of debt to deal with. It has filed for Chapter 11 reorganization in the hopes to keep it afloat. It has $300 million in new financing to continue current projects, pay wages and keep things afloat. Recently its stock SUNE was at $33 a share but it has dropped under 30 cents a share. The company had made some solar plans in the Antelope Valley, but they have done more solar and wind in South Korea and Germany. They also have two subsidiaries TerraForm Power and Terra Global with inroads in Brazil, India and China. The bankruptcy doesn’t involve these two spinoffs. There have been other solar energy bankruptcies and one a few years ago in the Antelope Valley on the far-east side in High Vista Area. First Solar operates several solar farms in Antelope Valley and it is publically traded, but a number of other solar firms are private enterprises.

The Builders Index Or Housing Starts was down 1.09M in March vs. 1.17M expected

U.S. housing starts fell more than expected in March. The housing permits applications are also at a year low. This is a US number and not an Antelope Valley number, but is shows a slowing in housing being built. This may be different in the Antelope Valley for the future due to the new Stealth Bomber building plans at Northrop Grumman’s Plant 42. This does show a slow done in the first quarter housing starts for the first half of 2016 nationwide. The overall groundbreaking decreased 8.8 percent to a seasonally adjusted annual pace of 1.09 million units. This is the lowest level since October according to the Commerce Department. Although, last months housing starts were revised up, but only slightly from 1.19 million from 1.18 million. The largest segment of the housing market is the single family and that dropped almost 10 percent or 9.2 percent. This is the lowest national number since last fall. Again this is a national number and maybe different in Los Angeles County, but it is a reflection of the new housing market for 2016

Antelope Valley is the Silicon Sky

This is a reprint of an article from the AVPress by Jim Keen After suffering more than its fair share of down time, the Antelope Valley is on the upswing and the outlook for its leading industry, aerospace, is bright. In an essay titled "The Unfolding of Silicon Sky," economist Christopher Thornberg notes the Antelope Valley suffered through hard times in the 1990s from defense cutbacks and was hit hard than most areas in the housing market bust of the Great Recession. "The good news is that the Antelope Valley is on an upward swing and clearly recovering from the recession," Thornberg wrote in the essay, which appears in the 2016 Economic Roundtable Report produced by the Greater Antelope Valley Economic Alliance, or GAVEA. Thornberg is the founder of Beacon Economics and has been a frequent visitor to the Antelope Valley. Thornberg says signs of that upswing include home prices that are increasing at a 9% pace, falling unemployment, taxable sales growing at a healthy 5% rate, population growth holding steady at just under 1%, and overall job growth being at just above 2%. "While new construction remains subdued locally, growing unaffordability in the core areas of Los Angeles will undoubtedly create a new surge in local demand over the next few years," Thornberg wrote. The biggest bright spot is aerospace. "This isn't your father's aerospace industry, back when gutsy test pilots and bigger jet engines defined the industry," Thornberg wrote. "Today, it is all about material sciences and advanced computer technology." Thornberg notes some of the industry's recent milestones, including billionaire Paul Allen opting to build a giant airplane in Mojave to launch satellites into space, Northrop Grumman winning the contract to develop America's next bomber, and activity by the Air Force and the Navy in redesigning major weapon systems in the region. "All of these efforts require massive R&D activity and extensive high-tech supply chains - bringing in a new wave of suppliers and sub-contractors. These will be high-tech firms with highly skilled employees and represent an opportunity for the area to become a high-tech hub," Thornberg wrote. The key for the region is to make it as easy as possible for these companies and workers to come to the Antelope Valley, Thornberg said. The region will also need to make sure the area is a place where tech workers would want to live by improving education, expanding entertainment and retail options, and making space for high-end housing, Thornberg said.

Several Multiple Housing Tract Maps recently approved and extended in Lancaster

A recent planning commission meeting extended tentative tract map approval for a couple of investment firms. 64 acres at 80th West and Ave L was approved for a 60 day extension. The subdivion is for 204 homes zoned R-10,000. There was another 42 acre plot approved for a 60 day extension 40th Street West at H-8. This is approving 156 homes of R-7000 zoning. Another firm was approved for 66 home on R-10,000 zoning at 35th Street West at K-4. The same firm is getting another 39 home approved near this parcel. Another 40 acre parcel at 15th East at H-8 was approved for a 60 day extension on 151 homes also zoned R-7000. These extensions are currently only approving the tract map, so building doesn’t appear to be around the corner, but it looks positive that these firms are moving their plans forward for future housing development. It these all move forward then that is at least 550 new homes on the horizon. This will certainly put a dent in housing inventory. Stay tuned for future updates on these new developments.

New Positive Jobs News on the Antelope Valley Horizon

Northrop Grumman was awarded the “B3” new stealth bomber contract, but it is under appeal by Lockheed and Boeing. Lockheed also has a presence in Palmdale, if there is any change maybe Lockheed will get some input. The entire bidding process takes time, so it looks like Northrup will get the bid unless there was any illegal backdoor deals. But there is no evidence of that. Additionally, BYD is building electric buses and expanding their footprint in other cities and States. Also Kinkishiryo which is also in Palmdale has been building some rail cars for the Metro Rapid Transit system. They were going to pull out of Palmdale at one point, but tempers and accusations cooled. There are several solar power facilities taking place on the west side. These projects are being built and jobs are operating. Once the conduction faze is complete then many of those construction jobs will be gone. But it seems as soon as a project is completed then another one gets started. The sun keeps shining on solar in Lancaster and LA County land. More engineering jobs like these especially the new stealth bomber and the bus and train construction and manufacturing creates a need for housing in ownership and rentals. This all increases the value of land over time. This is all positive news for real estate and land investment.

Housing Tentative Tract Maps Denied and One Requesting Extension

The city of Lancaster is looking into an one year extension of a tentative tract map for zoned R-7000 at 60th West at J-8. It is a 12.6 acre lot and the proposal is to build 49 homes on the site. The tentative tract map applicant Royal Investors Group is requesting a one year extension. This group is not a home builder but a map builder, so it is not likely that any homes will be on this site anytime soon. United Engineering groups tentative tract map at 30th East at Ave K was approved to deny the request for a one year extension based on lack of findings in the staff report. This subdivision was set to be on 26 acres with a proposal to build 45 single family homes on the site. It is currently zoned R-10,000 or one house per 10,000 square feet. So no money or interest in building new homes hear. This is on top of the report today that the National Association of Home Builders index rose 1 point to 61, its highest level since November 2005. The builders or the map builders have been planning for housing development in Lancaster, but not anytime soon or at least for these two mappers. We have reported housing development about a year ago, but it looks to be still over the horizon for some builders.

Large Solar Power Facilities Underway on the West Side

This will take up 1191 gross acres bounded by Ave K, 80th Street West and 105th Street West down to the aqueduct. The first phase will be 104 acres from Ave K to Ave K-8 and between 90th Street West and 100th Street West. Then there will be another 600 acres from 95th Street West between K and L generally. They will follow up with another 322 acres between 80th and 90th West from Ave L to Quarry Ridge Road. The last phase is 95 acres from 80th to 85th West between L and L-8. This plan is being undertaken by sPower or Sustainable Power Group according to the City of Lancaster records. The city is changing the zoning from Specific plan and other zonings to RR 2.5. This will allow a 150 megawatt facility in the RR 2.5 zone. The Conditional Use Permits were adopted and approve in late July. There has been some building out there already, but large area encompasses a great deal of land and takes up a lot of APN 3248. It appears that the solar company has secured a great deal of this land already and applied for the permits with the City of Lancaster. So the adage buy land and wait has paid off for these long and even short term investors as a developer has come and is developing at the current extreme city limits of Lancaster. If your not familiar with the city of Lancaster then you have missed the solar gold rush. But the city of Lancaster and Palmdale (Antelope Valley) are situated in the most norther part of Los Angles County. This developing facility is about 8 to 10 miles west of Hwy 14 and just north of the aqueduct that runs via the the southern portion of Antelope Valley. Some of the solar panels are visible via google maps or aerial mapping. Stay tuned here for more news.

BYD Electric Car Maker Stock Tumbled in Heavy Trading

CNBC news reported recently that Shares in BYD which is traded in Hong Kong plunged nearly 47% or more than $1.2 Billion. BYD in based in Shenzhen China and makes electric vehicles, batteries and mobile phone handsets. It also makes the Electric Bus in Lancaster, Ca. According to the Business News reports the company can’t account for the sudden drop in price. Stock price drops of this magnitude are most usually based on hard company information. So why the drop? It is not known at this time, but it appears someone knows something. The 20% increase in stock sales volume indicates something. Local news reports speculated it has something to do with the Russia, yet other news reports indicate BYD has little exposure to the Russian market as most of their sales are in the Chinese mainland.

Lancaster and Palmdale Water Reclamation Plants Continue the Environmental Friendly Direction of County of Los Angeles

Many ask us what are those big pond near Hwy 14, and what are they building at 120th Street West? Well lets let LA Count tell the story about these Environmentally Friendly Projects: The Lancaster Water Reclamation Plant (WRP) is located at 1865 West Avenue "D" in the City of Lancaster and occupies 554 acres east of the Antelope Valley (14) Freeway. The plant was placed in operation on September 24, 1959, with an initial capacity of 6.5 million gallons per day. It replaced a previous plant which was located on Avenue H between 20th and 30th Streets West. This original plant began operation on December 2, 1941. THE CURRENT OPERATION The Lancaster WRP provides tertiary treatment for up to 18 million gallons of wastewater per day (see flow diagram below). The Lancaster WRP plant serves a population of approximately 160,000 people. In addition to producing reclaimed water, the Lancaster WRP processes all wastewater solids generated at the plant. The wastewater solids are anaerobically digested, centrifugally dewatered, and stored in concrete lined drying beds where some additional drying occurs. The dried bio-solids are hauled away and beneficially reused. Methane gas is produced during the digestion process and is used to fuel the boiler used to heat the anaerobic digesters. The Lancaster WRP has historically supported the Antelope Valley Tertiary Treatment Plant, which uses chemical coagulation and dual-media filtration to remove additional amounts of phosphorus from reclaimed water. On average, 3 million gallons per day of the Lancaster WRP effluent is reused at a local farm for irrigation of fodder crops, nearly 3 million gallons per day are sent to Piute Ponds to maintain 200 acres of wetlands as a wildlife refuge, and approximately 0.5 million gallons per day of water is reused at the Apollo Lakes Regional Park during most of the year to maintain the water level in the lakes and for irrigation. The Palmdale Water Plant The Palmdale Water Reclamation Plant (WRP) is located at 39300 30th Street East in the City of Palmdale. The plant currently occupies 286 acres east of the Antelope Valley (14) Freeway. It was placed in operation in September 1953 and had a capacity of 0.75 million gallons per day. THE CURRENT OPERATION The Palmdale WRP is a tertiary treatment plant with solids processing facilities. The plant provides primary, secondary, and tertiary treatment for a design capacity of 12 million gallons of wastewater per day (see flow diagram below). The plant serves a population of approximately 150,000 people. Effluent is reused for irrigation of trees and fodder crops on City of Los Angeles Department of Airports' property and also for parks in the city of Palmdale. The Palmdale WRP processes all wastewater solids generated within its service area. The wastewater solids are anaerobically digested, stored, and then dewatered using centrifuges. The dewatered cake, or biosolids, is hauled away for agricultural land application.

San Francisco based Silverado Power Plans to build Six Solar Sites in parts of Lancaster and Los Angeles County

Silverado Solar plans to build six solar energy fields within almost 1,000 acres in unincorporated Los Angeles County. The projects are on the west side of Hwy 14 and they all have been partially approved by Lancaster Planning Department and Los Angeles Regional Planning. They run between 30th Street West and 120th streets West. Lancaster planning’s website indicates that two of them will be above Ave D near Hwy 14, while the other four will be south of Hwy 138. Silverado is currently buying the land and negotiating prices with realtors and sellers. What seems unique is that some of the parcels are 2.5 acres in size such as the area at 100th West at Ave K. Most of the time we have found that solar firms target large parcels. This causes the solar firm to negotiate with numerous sellers while getting approval from LA Regional Planning. According to AV Press, the six projects will generate a combined 172 megawatts of energy with the largest one being a 52 megawatt facility on 256 acres, running from avenues J to H-8 between 85th and 97th streets west. There are a lot of individual parcels in this area as well. Officials have yet to fully approve the plans and are still receiving public comments as part of the environmental impact review process. Dust and the availability of water seems to be a hurdle. Silverado claims to have a solution to use water outside of the area or reclaimed water. There have been a lot of solar projects and this dust issue was not addressed with the other projects now run by First Solar. Silverado came late to the game and now they have to implement dust control guidelines as part of the environmental report. It is very likely they will have a number of other mitigation procedures because of the impact on the burrowing owl, ground squirrel and other plant and animal species that maybe affected. The west side of Antelope Valley has seem an increase in land sales because of all of the solar projects in the area. Many local homeowners don’t like this alternative energy growth so close to home, but the land owners who live elsewhere have been happy to unload their land. Stay tuned here with vacantlanddeals.com and we will provide current updates on this project and others as they affect real estate in Lancaster and Palmdale, Ca

KB Home Projects In Lancaster East Side 2014

There are at least 3 major housing projects on the East side in Lancaster Ca. They are being undertaken by KB Homes. The first on our list is a 13.60 acre housing development called KB Homes Ol Bel Sol at 25th East and Ave K. This is a 41 single family home tract. The second is a 38.75 acres project called Dorado Vista at the south east corner of 30th East at Ave J, this project is a subdivision of 141 single family homes. The third project is a 40 acre project at the south eastern corner of 35th East at Ave J. This subdivision is a project for 169 single family homes and it is called Dorado Skies Community. According to KB Homes website the priced target of Dorado Skies is $238-$275k per home and there is no HOA. They look to plan five different types of tract homes. The 2000 square foot homes are 3 to 4 bedrooms and the 3200 square foot homes at 4 to 5 bedrooms. 141 Single family home at The Dorado Vista site which is located at 30th east and Ave J. The average listing price is $167,564. They are 3 beds, 2 baths, approximately 1,988 square feet, and will be built this year. The smaller project in O' Bel Sol, is sold out. The average listing price is $167,564. The floor plan has 4 beds, 2 baths, approximately 2,548 square feet, and they were built in 2013.

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

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.

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

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.

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

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.

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

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.

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

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.