High Speed Rail Private Property Purchase Right of Way Process

The Cal High Speed Rail has a process regarding how they will buy private property for the planned rail line. Once they target property within their proposed path or alternate path then they begin a property evaluation process. They will put together a design and survey to start the process to prepare a boundary survey with a legal description and appraisal maps. Once this is done they will begin the appraisal, but only after the approval of the approved and alternate routes. Then they will meet with the private property owner and do an appraisal inspection. A surveyor may stake the area and the evaluation may include mitigation to re-establish remainder. Once this is complete they will do an appraisal review with a final approval process. Then an acquisition process begins but after the Notice of Determination (NOD) and (ROD) Record of decision is made. The negotiation initiation is made with the property owner. They may consider new information at this time, and then the final approval process will start. If there is an established farm, home, or business in the path then a relocation process may commence with a 90 day notice. The farm, home or business may get moving expenses paid, or other benefits. If a business can show a loss of business goodwill then that business can file a claim, but they will have to show a burden of proof. This may include tax returns, or other evidence showing income loss due to relocation if applicable. This is all part of their right of way process. If you believe your business or private property is within the path then you should maintain your records of business if you wish to make a claim for a higher value, or a business loss.

Money Is Leaving China

News reports indicated China has tightened capital controls, but it doesn’t seem to be working. Their foreign exchange reserves unexpectedly fell below $3 trillion. There has been a steady drop as it fell by $12.3 billion in January to $2.998 trillion, compared with a drop of $41 billion drop in December. China had lost over $300 billion in 2016, and over $500 billion in 2015. News reports indicate Beijing is concerned at the speed of the outflow. This outflow hurts its ability to defend its own currency. It is possible if the outflow continues then the government will devalue their own currency. The US dollar has been rising and the yuan has dropped by almost 7% since last year. At the same time their gold reserves have increased. What does this mean for the Antelope Valley? Well many Chinese investors are investing in California. There has been a huge influx of Chinese purchases of real estate in San Francisco, Los Angeles and the Antelope Valley. Land is still cheap and it takes no effort to maintain dirt. There has also been interest in farm land to grow traditional agricultural products, as well as, marijuana. Stay tuned. China has lots and lots of money, and California seems to be a nice resting place for their investments.

Many of China’s Elderly are looking to Retire and Invest Abroad

China is facing a looming demographic crisis due to its rapidly aging society according to a UN Study. There soon will be an estimated 360 million Chinese over the age of 60 in 2030. That is 25% of the population, which is also larger than the entire US population. China may not have the resources to care for a large retired population. Their economy has slowed, and affluent Chinese are increasingly investing in retirement properties overseas both for their parents and their own golden years. They have benefited from a property boom at home and they would like to retire somewhere safe, environmentally clean, safe and comfortable. The yuan’s value has decline against the dollar, so they have been pouring money into foreign investment in Europe and the US. Overall Chinese investment in foreign commercial and residential real estate jumped from $5.6 billion in 2012 to $34.4 billion last year, according to recent studies. A recent survey also indicated Chinese who had either emigrated or were considering emigrating, of those 60% said they would buy an overseas property in the next three years, with the US, UK, Canada and Australia as the top destinations. More than half indicated they were concerned about the continuing depreciation of the yuan. Outbound tourism has shot up 200% in 2015 from 2014. Retirees expect to live full lives in their golden years and the west appears to be their desire destination. Chinese also like living with people of their own culture just like others. California has one of the largest Chinese populations in the US. Many also look to vacant land as an investment vehicle, since there is no maintenance on land parcels. They can sell the property later for a profit and then buy a home in California. The investment becomes a safe haven from the yuan and home government. Also what make Antelope Valley a good prospect is the new medical facilities. Retirees like access to safe state of the art medical care. The desert valley may fit the bill. Also China has dense cities with crowded apartments. Antelope Valley and many parts of California are the opposite of that. Additionally, a foreign investment benefits their children and grandchildren. In China property ownership is a leasehold and not fee simple like the US. A leasehold maybe only 70 years in China, so you can’t will the estate to your children which is so common in the US. There are still cultural barriers to Chinese foreign investment, but some of the positives may outweigh the negatives. An investment can be turned into cash when appropriate.

A New Proposed California State law Compels cities: Build more, or we’ll do it for you

Every California city is required to build a certain amount of housing to meet the state goals, and many cities are ignoring it. The new law proposed in Sacramento would force cities to comply, or the state will push the projects forward. It is SB 35 and if passed then each city may be forced to fast track building projects. This takes control from the local level to the state. Most cities don’t like such bullying. It has not been written fully just yet, but it has been proposed by new state senator Scott Wiener. Other similar proposals sank in the senate. Initially the proposed law will allow control locally, but it may be more how a city will comply and not whether they comply. A San Francisco housing initiative pushed for 3,600 new homes every year through 2020. Other San Francisco Bay Area districts will create 160k new homes in the same period. We don’t have the figures for Los Angeles County, but the push from Sacramento is build, build, build regardless of location.

Getting Water from Air. An Antelope Valley Water Solution

A company has come up with a solution to the lack of water in the Valley. No well needed. The following is under development by VIVI-Labas and UC Berkeley. The following is from their website. The Water Seer device is planted six or more feet into the ground, and soil is then packed around its metal neck. The top of the Water Seer holds a vertical wind turbine, which spins internal fan blades to draw air into the subterranean chamber. Because the underground chamber portion of the Water Seer is cooled by the surrounding earth, water condenses in the reservoir to create a sort of an artificial well, from which people can draw clean, safe drinking water around the clock. It can draw up to 825 gallons of water from the air daily. The cost is projected to be under $200.The low-cost device was developed by VICI-Labs, in partnership with UC Berkeley and the National Peace Corps Association, as a possible solution for the 2.3 million people on the planet who lack regular access to safe drinking water. A single Water Seer device can collect up to 11 gallons of clean water every day with no external power supply required, and a collection of several devices can provide enough water to support a small village. The not-for-profit company will match US purchases of each unit by donating a Water Seer collection device to those in need living in developing countries or in arid climates. Water Seer launched an Indiegogo campaign to raise $77,000 to build “orchards” of water collection devices around the world. The device has already been tested as a prototype, and the latest model was finalized in August 2016 and will undergo field tests with the National Peace Corps Association once the crowdfunding campaign closes.

How to Donate Land to a Charity for a Deduction

A person can donate land for a charity to build on, or for the charity to sell and create revenue. Providing tax-exempt organization with a sale-able asset and staying within the Internal Revenue Service's rules and limitations, then donating can be a good alternative if you can’t sell the parcel, or an investor is just looking for the deduction The donation has to be to a real IRS charity. One that has filed the proper forms and is in good standing. Also your deduction can capped at either 50 or 30 percent of your adjusted gross income per year. If you’re over the cap then the deduction may flow over to the following year. If your income exceeds $250-$300k then itemized deductions can be reduced 80%. If may also depend if you file married or single. The issue with donating land and real estate is that the charity will then own it and have to pay state property taxes. If the land is not widely sought after then it may be difficult even for the charity to sell it and fund there goals. Other charities are real estate specific. Housing, conservation and environmental organizations are the big three. They may wish to conserve the land for endangered species, or they will later use it and never to develop land. Firms often buy land to donate to environmental groups in exchange for developing another area. A seller who wishes to donate land will still likely have to go through escrow, since the charity will wish to have clear title on the parcel without debts, and encumbrances. If there is a mortgage then that will need to be paid off and a re-conveyance filed and recorded. After you have picked the charity and made the donation then you or your accountant will need to mark it on Schedule A of at 1040 tax return. There is a form 8283, which is where the IRS has you detail your non-cash contributions. This option is a great way to get the deduction on land that you invested in some time ago, but are not reaping any rewards.

Medical Hubs to Spur Valley's Growth

Courtesy: Jim Skeen AVPress Nov 10 2016 LANCASTER - A plan to turn the area around Antelope Valley Hospital into a "Medical Main Street" will help keep talent from leaving the region and will spur economic development, city officials said Wednesday. The city wants to create a medical and healthy lifestyle hub on roughly 360 acres around the hospital. The area includes about 100 vacant acres, of which roughly 40% are owned by the hospital, which is partnering with the city on the effort. During a presentation before the Lancaster Chamber of Commerce, Councilman Raj Mahli talked about how area students leave the valley to attend college and do not return. As an example, Mahli said two of his high school friends left the valley and became doctors and never returned. Medical Main Street will create a desirable area that will give students a reason to return after college, he said. "My high school buddies aren't coming here," Mahli said. "What I really hope is when my son and his friends graduate from high school and go away that they will come back and work in this community." The area the city is looking at stretches from 20th Street West to east of 12th Street West at Avenue J, and from north of Avenue J to the shopping center on 15th Street West north of Avenue K that contains offices of High Desert Medical Group. "Today the hospital is very isolated," said Chenin Dow, a management analyst with the city. "We would like to bring dining opportunities, shopping opportunities and also housing opportunities for the doctors and nurses." The city has approximately $13 million in grant funding secured for the initial improvements to the area. Sargent Town Planning, a Los Angeles-based firm that specializes in urban planning and designs that emphasize pedestrian- and transit-oriented neighborhoods, has been hired to prepare a master plan and environmental impact report for the project. The planning work is about 40% complete and will take about a year to 18 months to finish, said Vern Lawson Jr., Lancaster's economic development director. Sargent will also prepare an economic analysis for the project. The hospital already employs about 2,500 workers, Lawson said. "I would expect to double that," Lawson said. "We certainly have room to grow. We've always been the center of medical in the Antelope Valley and we want to make sure we continue that and that we shift with the times. I think this plan does that."