Los Angeles County Proposes Rural Land Zoning Changes in Antelope Valley which Is Unfavorable to Land Investors

Los Angeles Regional Planning has been proposing new rural agricultural land zoning from the generally current zoning of LCA (Los Angeles County Agricultural and rural zoning. The current zoning allows farming and one home per 2 acres in the majority of Antelope Valley’s east and west sides. Many of the parcels on the far east side and far west sides of the Antelope Valley are 2.5 acres to 640 acres. This zoning today is fairly favorable to land owners as it allows say two dwellings in a four acre lot. Most parcels are broken down from 2.5, 5, 10, 20, 40 acres and so on up to 640 acres. The new zoning will drastically change the land use and development of these parcels and the vast majority of parcels will fall into RL 10 or RL 20, which is Rural Land one dwelling per 10 acres or one dwelling per 20 acres. This new zoning change will impact thousands of land owners negatively. This means you will need at least 10 acres on the far east or far west in order to put one house on your property. Most Antelope Valley Country land owners will need 20 acres in order to build one dwelling. So land owners with large parcels in the 40 to 640 acres will only be able to put a minimal amount of homes on their parcels. Thusly you can only put two homes on a 40 acres parcel zoned RL-20. It means the county wants this land to have limited development or to be farmed but the cost to run power, and water to these remote areas would be cost prohibited. Also with the water rights being reduced the availability to drill a well going forward will also be more difficult as the county wants to reduce the number or wells in the valley. These zoning changes will drastically reduce the value of property owners land as developers will not develop in these proposed low density zoning areas, as the return on their investment would not justify the expense. On the flip side land within the city limits of Lancaster and Palmdale should show more value over time as they will have access to city services and far far better zoning opportunities today and going forward. It is clear that Los Angeles County doesn’t want Antelope Valley to look like San Fernando Valley. Some of the reasons the county gives for these proposed changes are that it protects environmental resources, enhances rural land character, minimizes natural hazard threats, creates an efficient use of the infrastructure and public facilities, and limits green house gases. We think it clearly reduces their tax revenue, and ends Los Angeles Counties growth curve as 49% of all the vacant undeveloped land is in Antelope Valley. The zoning changes are still within the proposal stages, but Los Angeles County has been trying to make these changes for years. Maps of the new zoning can be found via Los Angeles Regional Planning or contact us and we can show you where to get them.

Bond King Says Inflation will Damage Treasuries, Need Real Assets Like Land and Gold

Investors looking to preserve their purchasing power will have to avoid Treasuries and put their money in “real assets" such as stocks and real estate, Bill Gross, Pimco co-founder, told CNBC recently. “In the Treasury market all interest rates are on a negative basis,” Gross said. “Risk averse investors looking to hide in Treasuries will see a haircut relative to future inflation. ”If you want to maintain purchasing power you have to make the leap into real asset territory to get a real return.” He bases this from the potential Federal Reserve and Global Central Banks printing money to re-inflate their economies. This inflation will cause investors to move primarily to gold and silver. But also real estate maintains its value in inflationary economies. Real Estate should maintain its value and increase during inflation. Land maybe a better hedge against inflation as there isn’t any maintenance, and other losses like fire, or hazards. Land is a good asset to hold and wait for the economy to change in a more positive direction with jobs, and growing GDP(Gross Domestic Production).

Seller Financing “Owner will Carry” for California Land Loans and Buying a Home

Owner will carry for land is becoming more and more prevalent between buyers and sellers these days as banks are more reluctant to lend for land purchases. It is even more common today for home buyers. The owner will carry(seller financing) option was the norm decades ago when homes were much much less in capital cost, so buyers would pay for a home over time. It is very common today where land sellers will even offer the opportunity to buyers via MLS listings with their land listing brokers. It essentially works where an agreed price is made between a buyer and seller with an agreed interest rate. The buyer pays usually a higher deposit of say 10% and the interest rate is similar to the current rates of the day, but slightly higher than what you would get from a bank. Today’s rate would range from 5% to 7%. Some sellers want more, but unless you have the land parcel we suggest you pay a lower interest rate and not get gouged. The terms will be 3 to 7 years but could be longer. Most sellers we have found want 7 years or less. This is typically done via an escrow company once the terms are agreed upon. After escrow closes payments are then made directly to the seller or seller’s representative monthly until all payments are made in full. The buyer will receive title with a deed of trust attached. If the buyer fails to pay their monthly payment three months in a row then the seller can and typically will foreclose on the deed of trust. All buyers’ payments will be in favor of the sellers, so there will be no refund to the buyer. It is not any different than what a bank will do if a mortgage is not paid. Foreclosures happen all the time especially these days when many homes are under water. It is a very simple and easy process for a buyer to own land without a larger capital payment. It is essential when the buyers final payment is made to have a deed of reconveyance signed by the seller and recorded. If a deed of reconveyance is not recorded after the final payment then there will be a cloud on title. This will make it difficult for the buyer to sell the property later as title companies will not clear the title without a deed of reconveyance.

California high-speed rail gets green light Madera to Bakersfield

California lawmakers gave the green light to start building the nation’s first dedicated high-speed rail line, a multibillion dollar project that will eventually link Los Angeles and San Francisco. This first link is proposed to be from Madera to Bakersfield, Ca. Madera is just north of Fresno, Ca. Madera has a population of 60 thousand, Fresno with 500,000 and Bakersfield a population of 350,000 according to 2010 census. This is certainly not a lot of traffic for an $8 billion project that will run along Hwy 99. The overall project once San Francisco and Los Angeles are connected will be $68 billion, a massive amount for a state that is operating in the red. The vote was along party lines with approval from labor and Governor Brown, yet no Republican voted for approval as they site the massive costs. The Los Angeles Times reported at the same time a French firm SNCF which operates high speed rail in France offered to assist in the construction, but organizers and lawmakers declined the offer as self serving. Governor Brown has pushed for the massive infrastructure project to accommodate expected growth in the nation's most populous state, which now has 37 million people. State and federal officials also said high-speed rail would create jobs. The bill authorizes the state to sell nearly half of a $10 billion high-speed rail bond that voters approved four years ago under Proposition 1A. In addition to financing the first segment of high-speed rail, it allocates a total of $1.9 billion in bonds for regional rail improvements in (Caltrain) Northern and the Metrolink in Southern California. A number of Democrats were not in favor of this project as there are no guarantees for future funding from Federal or private sources. All this aside what does it mean for the land investor? Well initially if you own land between Madera and Bakersfield then you have a potential buyer in your home or land. It also become a target for land and real estate speculators who will target to buy land along potential or proposed routes in the Central Valley and in the Antelope Valley. There are freight rail lines along this route which is more or less along Hwy 99. Most of this land now is less expensive land then land within the San Francisco Bay Area , or Greater Los Angeles. If you wanted a green light to speculate on land in the Central Valley then you have got a track to follow.

LA County Approves First Solar to Continue Installation at AV Solar Ranch One Project in Antelope Valley’s West Side

The Los Angeles County Department of Public Works and First Solar, Inc. (Nasdaq: FSLR) have reached an agreement on the installation of solar modules at the Solar Ranch One photovoltaic (PV) power plant currently under construction in the Antelope Valley. Construction of the AV Solar Ranch One plant had been suspended during a permitting dispute with county officials over building codes. Installation of the modules had been delayed while First Solar and Public Works worked to achieve agreement related to the module code certifications. The project is partially funded by a $646-million U.S. Energy Department loan guarantee and is expected to be completed next year. First Solar has sold the 230-megawatt Antelope Valley plant in September to Exelon Corp for $75 million according to company filings. Excelon has indicated that they will invest $700 million into the project. Although it is sold to Excelon, First Solar will operate it and maintain it. The agreement with Los Angeles County will enable First Solar to continue construction activities of the 230-megawatt power plant that, which is scheduled for completion in 2013. It will generate enough electricity to power 75,000 homes. The $1.4 billion project is one of the largest in LA County. The 2,100-acre property is located in the northern part of the county and situated on land previously used for agriculture and without threatened or endangered species, according to First Solar

Cowboys and Aliens in Antelope Valley’s Elizabeth Lake

A recent episode of Ancient Aliens on the History Channel 2 detailed the story of Lake Elizabeth being a Alien site. Indians called it Devils Lake, and they spoke about a Thunder Bird or “rocket plane”? Ancient Alien hosts described it as potential plane, since Indian legend describe it as a bird with fire (ThunderBird). Many ranchers in the past have complained about missing and mutilated cattle over the years. The first sighting of this monster is said to have been by a rancher named Francisco “Chico” Lopez who raised cattle and sheep around Elizabeth Lake in the 1860s. The stories say the monster ate Lopez’ cattle, so he sold out in 1883 to another rancher Leonis, who tolerated the beast no more than he tolerated squatters. In a book by S.E. Schlosser’s 2005 retelling of the legend in “Spooky California,” Leonis later sold the ranch himself because the monster had been raiding his cattle and scaring off his workers. When Leonis’ ranch hands reported the monster was stealing cattle, he camped beside the lake and waited for it to emerge from the water. The rancher attacked the monster and the monster then retreated to allegedly Tombstone, Arizona where according to an April 1890 article in the Tombstone Epitaph two cowboys shot to death a creature like a giant crocodile with wings that stretched 160 feet. Was it the Lake Elizabeth Monster? If the Thunder Bird of Devils Lake is real or not there isn’t any concrete evidence, but it makes for an interesting story. We bring this up because areas need places of interest to get tourism, and people to visit. Antelope Valley currently lacks that attraction which can help bring alternative commerce to an area. Presently Antelope Valley has technology in the Stealth Bomber, Wind and Solar, spring poppy reserve and lower priced homes and land, but there isn’t anything like an out of this world experience to attract people traffic.Antelope Valley needs a legend, a phenomenal occurrence, hiking trail or something exquisite to attract visitors. Mybe there is hope that SpaceX or private space exploration craft will launch from Edwards in the future. To read more about the legend of Lake Elizabeth you can read 1930 book, “On the Old West Coast,” by Horace Bell, or S.E. Schlosser’s “Spooky California,”

Desert Tortoise Bighorn Sheep and Environmentalists get bypassed by California Legislators Bill SB 226 in favor of Calico Solar Project

The Los Angeles Times reports that under this bill SB 226, which was approved by the Senate in March and passed 56 to 10 in the Assembly, Calico Solar may now go directly to the California Energy Commission with its application for approval. The bill is expected to be approved by Governor Brown as the administration lobbied for the bill. K Road acquired the project from Tessera. It was planned to be an over 8000 acre 850 megawatt project but has since been reduced to 4600 acre 663 megawatt project 37 miles east of Barstow, Ca. It is just north of Hwy 40. The project needs quick action as it faces a June 30 deadline for approval from the Energy Commission. Funny enough according to the LA Times Calico Solar doesn’t have a power purchase agreement with an energy company, nor financing and it doesn’t even have a construction date. The Times reports that with the California government approval, the project will be an acquisition target for a solar firm. Today, Calico Solar has no power purchase agreement with a utility, no financing and no construction start date, and it faces a lawsuit by environmentalists. But with the Energy Commission's approval, the project could become an attractive acquisition for a big solar developer. Environmentalists have since filed a suit over the project. It is perplexing how this project has moved along so fast, since at the same time the Dept. of Fish and Game instituted mitigation cuts. The California Department of Fish and Game (DFG) announced in March that budget cuts had temporarily stopped the agency’s ability to review and approve new mitigation banking proposals statewide. The State budget cuts have created a backlog and the Department has slowed the process. The Desert Tortoise, Nelson Bighorn Sheep, and ground squirrel are all endangered species and live in San Bernardino County and on the Calico Project. The tortoise was removed before from Bright Source Ivanpah, Ca. Project already. This is strange timing with the reduction in mitigation approvals and this solar projects bill passing. California is clearly a Blue State and they have pushed for alternative energy for years. But this also pushes out endangered species and environmentalists which have been a political talking point on California Democratic Campaigns. It goes against the Democrats policies, and they have full control California State Government. We have been helping a number of firms in acquiring mitigation land in Los Angeles and San Bernardino Counties. This would have clearly been a mitigation land site. There is vast available land in Northern Los Angeles County and San Bernardino County where solar projects can thrive along with the tortoise. We can help pinpoint locations where mitigation and solar can co-exist.