Monday, May 2, 2011

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.

Wednesday, April 13, 2011

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

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

Friday, April 1, 2011

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

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.

Wednesday, March 16, 2011

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


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.

Tuesday, March 1, 2011

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

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

Wednesday, February 9, 2011

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

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.

Tuesday, February 1, 2011

Environmentalists Say Yes to Solar Land Development But No to MotorSports

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.