The City of Lancaster is on a Quest to be the “Green City” as far as Energy and Recycling

A private firm, Ecolution plans to build a more than $100 million high-tech automated recycling center in the city of Lancaster instead of sending waste to landfills it reuses and recycles the waste for energy and other purposes. The 100 hundred million is said to come from private financing, and their facility is said to recycle more products than similar facilities in use and there are less labor costs. Mayor R. Rex Paris has been quoted as saying “The City of Lancaster stands to be the first Net-Zero City in America,” “I support innovative public-private partnerships which promote green energy development and maximize our available resources. The long term success of Lancaster hinges on our ability to position ourselves as a leader in alternative energy production.” According to Ecolution’s website, they have a mechanism for sorting trash that they call GreenStream, which separates waste into 20 categories of materials, including recyclables, wet and dry organic fuels, electronic waste, household hazardous waste and inert materials such as rocks, concrete and soil. This allows them the ability to collect 85% of the recyclable material that Lancaster throws away. They can turn this into energy, or a new recycled product. The project is undergoing an environmental impact report, and maybe situated in the Fox Field Enterprise Zone. The city has previously agreed to provide a forty acres area for the facility.

When Can a Buyer Buy a New Home or Land after Foreclosure or Bankruptcy?

It is not all bad as you think if you have had a Bankruptcy or Foreclosure. We found information that can help those hurt in the recent Real Estate Financial crisis. A period of time needs to elapse and you also need to retain good current credit before you can get back into the real estate market. There are some really short times frames that prior borrowers can take advantage of, Here is the breakdown. Bankruptcy Conforming and High Balance Chapter 7 The time period is four years from discharge date Conforming and High Balance Chapter 13 The time period is two years from discharge date and four years from dismissal date. FHA Standard Chapter 13, 1 year if the payout period under the BK has elapsed and the borrower’s payment performance has been satisfied with all required payments. The borrower may also have to receive written permission from the court before getting another mortgage. A FHA Standard Chapter 7 bankruptcy person will have to wait two years since the date of discharge, and must re-established good credit or no new credit. A borrower with a high balance FHA chapter 7 or 13 will have to wait seven years before entering a new mortgage, while a high balance VA loan borrower with a Chapter 7 or 13 with have to wait two years, or one year but maybe case by case before entering a new mortgage. Pre-Foreclosure or Short Sale A conforming high balance borrower will have to wait four years after the credit report date. The borrower could get up to a 90% LTV (loan to value) also. A standard FHA high balance borrower will have to wait three years while a VA borrow will wait two years. Foreclosure Conforming and High Balance borrows will need to wait seven years from the credit report date while and FHA and VA loan borrower will need to wait three and two years respectively. There you have it. This past foreclosure crisis maybe well behind many prior borrowers and each situation maybe case by case. But with the low interest rates in today’s market there is light at the end of the tunnel.

Beautiful Earth Solar Project US Treasury Cancellation and City of Lancaster Planning Extension

Beautiful Earth Group LLC is planning a solar project on 180 acres of land at Avenue H to Avenue H-8, and between 80th Street West, and 90th Street West. The construction of their 38 megawatt photovoltaic solar generating facility is comprised of two19 MW solar fields in the Rural Residential zoned land (RR-2.5). Lancaster planning approved a (CUP) Conditional use permit back in November of 2010 to construct their proposed solar facility. The planning commission also recommended approval of General Plan Amendment and zone change. The City Council approved both the GPA and the Zone Change and CUP which became effective on February of 2011. Beautiful Earth Group later constructed a fence around the site area. The US Treasury 1603 Program: Payments for Specified Energy Property in Lieu of Tax Credits. According to the US Treasury site, the purpose of the 1603 payment is to reimburse eligible applicants for a portion of the cost of installing specified energy property used in a trade or business or for the production of income. A 1603 payment is made after the energy property is placed in service; a 1603 payment is not made prior to or during construction of the energy property. The deadline for new projects has passed and no new projects will be accepted according to the program. If a project has submitted an application prior to October 1, 2012 for energy property not yet placed in service (known as a Begun Construction application) they must update to a Converted Application within 90 days after the energy property is placed in service. The project applicant will not need to wait for a response from Treasury on their Begun Construction application. Applications updated after 90 days of an energy property being placed in service will not be accepted. Looks like Beautiful Earth Group may fall under this converted version as to our knowledge they have not begun construction. Beautiful Earth Group has applied for and they were granted an extension of one year with the city of Lancaster, Ca. in order to complete the construction of the project. It shows that well funded and Federal and locally approved alternative energy projects run into construction and timeframe obstacles.

Wal-Mart Supercenter Gets Final Approval at 60th West at L in Lancaster Ca.

A five member City Council approved the Wal-Mart Supercenter this week. Mayor Rex Parris helped push it forward, so the center wouldn’t move to Palmdale instead. Several years ago there was discussion of using Palmdale as an alternative site, but eventually it was decided that the 60th Street West and Avenue L site would be the best location. There has been much debate and opposition and challenges to the environmental report. A second report was completed and that was eventually approved. It takes quite and effort and funds to get real development in an undeveloped location like Antelope Valley, so Wal-Mart was looking to the future for this site. 60th West at L is mostly open space as you look west. The city limits of Lancaster generally ends at 70th street West, so Wal-Mart must see a growing future in this area. They must see a larger population moving to this area in the coming decades. The population of Lancaster is approximately 150,000, and large box stores look for 250,000 people to accommodate such a supercenter. Wal-Mart has five stores in the valley currently, and this adds another. It looks like they project the Antelope Valley to have 1 million residents in the coming future. Looks to this big box store growth as a sign of growth and development in the Valley’s future. These large chains stores put a lot of effort and thought before they endeavor to build and grow their establishments, so this is a good sign for land prices in the area.

The Land Acquisition and Construction Process is Very Slow for the $68 Billion Cal High Speed Rail

The LA Times recently reported that the land acquisition has not even started, yet construction is set to begin in July of this year. If the State doesn’t own any land how can they begin at all? The eminent domain process is very long a convoluted. Most of the land needed for the rail line will be agricultural land, but even then it will be similar to highway right of way acquisition. Hence a farmer would have to give up a portion of their land for the trains right of way, and cutting their own land in half. It is very likely most if not all of the High Speed Rail’s land acquisition will have to go via eminent domain which means court ordered sale of real estate. The state hopes to make purchase offers in the next several weeks, but expect farmers, homeowners, and businesses to ask top dollar for their land. In addition, agricultural land prices have risen the last year. The LA Times notes that Central Valley agricultural land can sell for $28k/acre, but the state land purchase budget is only $8k/acre. Yikes!! Once California hires their land buyers then offers will go out and the property owner has about a month to reply. They need to buy about 400 parcels. The state has rules regarding their eminent domain process which will extend the process by at least 90 days more. The eminent domain process could take another 18 months via the court system. Much of this agricultural land is family owned for generations. I don’t see many farmers giving up the land so easily. According to the LA times article , the initial 130 miles of rail in the Central Valley must be completed by 2018. The budget for this phase is $6 billion which requires spending about $3.6 million every day. This is voter approved as well. Californians sure loves to spend, if the state has the money or not. The major problem will be further delays increase the overall costs. Contractors are lined up, but they might even get paid without working based on their contracts.

Berkshire Hathaway Firm to Buy Antelope Valley Solar Project from SunPower

The Antelope Valley Press and several new agencies report that investor Warren Buffett firm (Berkshire Hathaway), one of the world's richest men, is investing in Antelope Valley solar projects. MidAmerican Energy Holdings, a company owned by the billionaire, will spend as much as $2.5 billion to build twin solar projects, originally proposed by SunPower, west of Rosamond and Lancaster. "We are excited about these projects because they support our core business principle of environmental respect. We are very proud to add SunPower technology to our portfolio of projects," said Bill Fehrman, president of Buffett's MidAmerican Renewables. MidAmerican Energy Holdings announced Wednesday it has acquired San Jose-based SunPower's 579-megawatt Antelope Valley Solar Projects, which would cover more than 3,000 acres straddling the Los Angeles County-Kern County line and which have been approved by Kern County and Los Angeles County officials. Called the world's largest solar-power project that has approval for construction, three-fourths of the project is in Kern County, with the rest in Los Angeles County. The site has irregular borders and runs roughly between Rosamond Boulevard and Avenue B and from roughly 110th to 190th streets west. MidAmerican will pay SunPower $2 billion to $2.5 billion for the projects and a three-year contract to build them. SunPower also will operate and maintain the projects under a multi-year agreement with MidAmerican, the companies announced in a joint statement. The projects will create an estimated 650 jobs during construction. SunPower officials said last month that hiring was expected to begin soon. MidAmerican Renewables, a subsidiary of MidAmerican Energy Holdings Co.,, has a total portfolio of more than 1,830 megawatts of wind, geothermal, solar and hydro assets. The Antelope Valley Solar Projects will provide renewable energy to Southern California Edison under two long-term power purchase contracts approved by the California Public Utilities Commission. "The Antelope Valley Solar Projects mark a historic milestone for the energy industry," said Howard Wenger, SunPower president. "We are delivering highly reliable, low-cost, renewable energy at a very large scale. SunPower is proud to partner with MidAmerican Solar and SCE, recognized leaders in clean energy development, bringing critically needed jobs and economic opportunity to California and helping the state achieve its renewable portfolio requirement." In addition, SunPower will be the engineering, procurement and construction contractor, and will operate and maintain the facility under a multi-year services agreement. Construction of the solar project is scheduled to begin in the first quarter of this year, with the plants expected to be complete by the end of 2015. The project has secured final conditional-use permits and has completed full environmental review pursuant to the California Environmental Quality Act, the statement said. SunPower said the property is privately owned and has been previously distributed. The site is co-located with the existing Antelope Valley Water Bank and is already bisected by an already-approved transmission line project from Southern California Edison. A fact sheet on the project said the solar panels will have a maximum height of eight feet and have anti-reflective panels, not mirrors. According to estimates provided by the U.S. Environmental Protection Agency, the project is expected to offset more than 775,000 tons of carbon dioxide emissions per year, equivalent to removing almost 3 million cars from California's highways over the 20 years of the plant's operation, the statement said. MidAmerican Solar's projects also include the 550-megawatt Topaz Solar Farms in San Luis Obispo County and a 49% ownership interest in the 290-megawatt Agua Caliente solar project in Yuma County, Ariz. "We are pleased to be working with SunPower on this development and look forward to establishing a mutually beneficial relationship with Southern California Edison as our customer for energy generated by this project. As we have done at our other solar project locations, we will work hard to establish positive and productive relationships with community and county neighbors and stakeholders," said Paul Caudill, president of MidAmerican Solar. SunPower has more than 1,000 megawatts of solar power plants operating worldwide, including the first 130 megawatts of the 250-megawatt California Valley Solar Ranch, which is under construction in San Luis Obispo County

Edison Mission Energy Files for Bankruptcy

Edison Mission Energy, an unregulated power-generating unit of Rosemead-based Edison International, indicated in December 2012 that it had filed for bankruptcy and had agreed on a reorganization plan with its parent company and holders of its $3.7 billion in debt. First Solar Inc., a solar power module manufacturer acquired a number of solar power projects in development by Edison Mission Energy, the power generation division of Edison International. This includes photovoltaic projects proposed for the Gray Butte area near Lake Los Angeles and near Mojave. “They purchased the entire development pipeline," said Bob Stiens, public affairs manager for Edison International. The 150-megawatt Gray Butte plant, in the permitting process with Los Angeles County, is proposed for 1,100 acres of agricultural land east of 240th Street East, near Avenue S. Press releases quoted Edison Mission Energy in a statement. “This is an important first step in the process to reduce our debt, enhance our liquidity profile and position EME for continued operation and future success." As part of the deal, Edison Mission Energy will be deconsolidated from Edison International “as of the filing date” and, in the future, will be referred to by the parent company as discontinued operations. Edison International’s stake in the bankrupt generating unit will be transferred to unsecured creditors. Santa Ana-based Edison Mission Energy said it had slightly more than $5.1 billion in assets and just under that amount in liabilities in Chapter 11 papers filed Monday in the U.S. Bankruptcy Court in the Northern District of Illinois. Edison Mission Energy has been struggling on several fronts: depressed energy prices because of the nation’s boom in natural gas production; higher fuel costs affecting its older coal-fired facilities; and pending debt maturities. Despite the challenges, Pizarro sought to strike a positive tone on Edison Mission Energy’s future.