Land Banking is a term used by land investors. It essentially means to buy land and hold it for a period of time for a long term gain. It is the same as holding a stock or security for a long period of time. Simply buy land, hold and wait to see what future growth patterns do to its market value.
A land contract is a simple contract between a buyer and seller to purchase real property. It doesn’t even have to be land. It can also be known as an installment sale agreement. It is an agreement between a seller and buyer whereby the seller provides financing to sell the property for an agreed purchase price and the buyer repays the loan in monthly installments. It is much like a typical mortgage agreement, but there isn’t a financial institution involved and there are only two parties in this transaction. Under a land contract, the seller retains the legal title to the property, yet allowing the buyer to take possession of it other than legal ownership. As an example, if a buyer pays $9,000 for a parcel with 10% down payment of $900 and then finances $8200 at 7% interest approximately $228.02 in installment payments a month over 3 years. The seller is providing a short term loan to the buyer. The seller holds legal title to the land until the loan is paid in full. After the full purchase price has been paid including interest, the seller will convey title to the property to the buyer, and record the deed with the recorder's office. If the buyer defaults on their installment payments then typically the land contract would consider this a failure to pay, and the buyer would be in breach of contract. In a failure to pay any equity earned by the buyer would return to the seller. The seller would retain all of the buyer’s payments and interest.
Land contracts are different than the typical real estate contracts, because in a land contract the seller is providing a loan to the buyer (short term seller financing). In a standard real estate contract, if there is a loan then the loan is handled by the third party lender who administers the payments after escrow closes. If a third party lender is involved then a lien (mortgage) or trust deed would be recorded on the property.
This is an easy way for a buyer to limit their risk in buying land if they don’t have the full cash amount in order to buy a property. It is also more cost effective and offers security to the seller as they will not have to foreclose on the property. We are offering land contracts on our smaller parcels, so it allows land buyers to invest in real estate with less capital and risk for tomorrow’s reward. We also think banking on your future with real estate still remains one of the best means to secure your retirement, or long term needs. With today’s low bank interest rates investing in land is a far better alternative.
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Tuesday, July 12, 2011
Friday, July 1, 2011
New Highway from Los Angeles County to San Bernardino County Would Increase Land Values on Antelope Valley’s East Side
There has been a proposal for a High Desert Corridor Highway (E 220) of approximately sixty three miles from Hwy 15 (SR-18) in San Bernardino to Palmdale Ca. (SR-14). This will greatly enhance access between the two major cities of Palmdale and Victorville, Ca. as the current thru road is Hwy 138 which is a two lane road. The High Desert Corridor Joint Power Authority (HDCJPA) is administering the project and it is currently in the environmental phase. The HDC will construct this new 60 mile east west expressway and likely a truck toll facility between Los Angeles and San Bernardino counties within the decade. The highway segment would be an eight lane freeway and it includes a High Occupancy Vehicle (HOV) lane in each direction from SR-14 past the Palmdale Airport to 50th St East along an alignment paralleling Ave P-8 in Palmdale, Ca. It may have to drop to Ave Q to pass Lake Los Angeles and reconnect to P-8 once near Palmdale. Most of the land along Ave P-8 is open space without any road access. It also looks like it will run north south along 50th street East up to Ave E and then run to Ave D (Hwy 138) west of Hwy 14. The exact details of the road route are not totally specific on the land targeted. It may still be under review while the environmental phase continues. In 2009, the Metro Board approved $500,000 for the HDCJPA to support the agency’s efforts. Measure R provided $33 million for environmental clearance. The City of Victorville received an $800,000 federal earmark which was transferred to the HDCJPA for the project. These funds will be used for the environmental clearance. The environmental clearance phase is scheduled to be completed by 2013 and construction completed by 2020. It looks like they will need additional funds for the construction phase.
An eight lane expressway will need to take a considerable amount of space along Ave P8 where land values are at there ten year lows. There are also opportunities along Ave E between Hwy 14 and 50th Street East. The project is not fully approved and technically it has not begun but buying land on the far-east side along this freeway route looks like a good long term investment in our opinion. As buying low priced land and holding it for long term investment is the essence of land banking. Even if the proposed route changes the land prices on Antelope Valley’s east side are currently very low. If you are interested in low price land opportunities then contact us for potential land banking acquisitions.
An eight lane expressway will need to take a considerable amount of space along Ave P8 where land values are at there ten year lows. There are also opportunities along Ave E between Hwy 14 and 50th Street East. The project is not fully approved and technically it has not begun but buying land on the far-east side along this freeway route looks like a good long term investment in our opinion. As buying low priced land and holding it for long term investment is the essence of land banking. Even if the proposed route changes the land prices on Antelope Valley’s east side are currently very low. If you are interested in low price land opportunities then contact us for potential land banking acquisitions.
Friday, June 17, 2011
Senate Bill 676 Will Allow Kern County Farmers to Grow Industrial Hemp on their Land
>Industrial Hemp has made its way back on the agenda in Sacramento with SB 676 proposed by Mark Leno the San Francisco/Marin County State Senator. It is the California Industrial Hemp Farming Act of 2011. Similar bills were vetoed by previous Governor Schwartzenegger. The bill establishes a five county pilot project for growing Industrial Hemp. The Counties which will be allowed to grow hemp if this bill passes are Imperial, Kern, Kings, San Joaquin and Yolo Counties.
Industrial Hemp has a variety of uses from clothing, foods (breads, energy bars, etc.), health, beauty products, and paper products. Tens of thousands of products use hemp. The bill states that only these counties can grow industrial hemp with 5 acres minimum, and with no upper acreage limit. It must be for agricultural use or research. Farmers must test the hemp for THC content and destroy crops with an excessive THC count. Industrial Hemp looks like the narcotic marijuana plant, but it has very low levels of THC. Thus its used only for industrial purposes. There are other regulations in order to not disguise Hemp with the Marijuana version such as no clandestine or backyard growing will be allowed.
Federal Law enforced by the DEA (Drug Enforcement Administration) prohibited the growing and cultivation of Industrial Hemp, as the DEA regarded Industrial Hemp as a controlled substance like Marijuana. The DEA’s claim was recently over-ruled by the 9th Circuit Court of Appeals in 2004 as the court stipulated that the DEA has no authority over the 1970 Controlled Substance Act. Farmers were allowed to grow hemp but the extra security, fencing, and DEA regulation were cost prohibited.
Here are some positive facts regarding hemp versus tree paper. Hemp paper doesn’t require toxic bleaching chemicals. It can be whitened with hydrogen peroxide, which doesn’t poison waterways as chloride and bleach do with the chemicals used in making wood pulp paper. Hemp paper can be recycled 7 to 8 times, compared with only 3 times for wood pulp paper. An acre of hemp produces as much paper as four acres of trees annually. It requires little or no pesticides or herbicides and produces two to four times more fiber than an acre of timber. It grows rapidly and can be harvested every 90 days and it is an ideal rotational crop. It also continues with the going green viewpoint of California as many trees will be saved. This “new” product will create jobs for Antelope Valley.
This may be a great opportunity for Kern County land owners as this would be a beginning of a need for available land. If this project succeeds then Antelope Valley may also be allowed to grow hemp as most of the available land in agricultural land, and it would be an ideal location. This “new” product will also create jobs for Antelope Valley.
Industrial Hemp has a variety of uses from clothing, foods (breads, energy bars, etc.), health, beauty products, and paper products. Tens of thousands of products use hemp. The bill states that only these counties can grow industrial hemp with 5 acres minimum, and with no upper acreage limit. It must be for agricultural use or research. Farmers must test the hemp for THC content and destroy crops with an excessive THC count. Industrial Hemp looks like the narcotic marijuana plant, but it has very low levels of THC. Thus its used only for industrial purposes. There are other regulations in order to not disguise Hemp with the Marijuana version such as no clandestine or backyard growing will be allowed.
Federal Law enforced by the DEA (Drug Enforcement Administration) prohibited the growing and cultivation of Industrial Hemp, as the DEA regarded Industrial Hemp as a controlled substance like Marijuana. The DEA’s claim was recently over-ruled by the 9th Circuit Court of Appeals in 2004 as the court stipulated that the DEA has no authority over the 1970 Controlled Substance Act. Farmers were allowed to grow hemp but the extra security, fencing, and DEA regulation were cost prohibited.
Here are some positive facts regarding hemp versus tree paper. Hemp paper doesn’t require toxic bleaching chemicals. It can be whitened with hydrogen peroxide, which doesn’t poison waterways as chloride and bleach do with the chemicals used in making wood pulp paper. Hemp paper can be recycled 7 to 8 times, compared with only 3 times for wood pulp paper. An acre of hemp produces as much paper as four acres of trees annually. It requires little or no pesticides or herbicides and produces two to four times more fiber than an acre of timber. It grows rapidly and can be harvested every 90 days and it is an ideal rotational crop. It also continues with the going green viewpoint of California as many trees will be saved. This “new” product will create jobs for Antelope Valley.
This may be a great opportunity for Kern County land owners as this would be a beginning of a need for available land. If this project succeeds then Antelope Valley may also be allowed to grow hemp as most of the available land in agricultural land, and it would be an ideal location. This “new” product will also create jobs for Antelope Valley.
Wednesday, June 1, 2011
Alas More Funds for The Cal High Speed Rail, But Will it Stop in Palmdale?
In 2008 voters approved nearly $10 billion in state bonds to fund the Cal High Speed Rail project under Proposition 1A and now this past month Transportation Secretary Ray LaHood took Florida’s $2 billion and gave it to 15 states and Amtrak. Florida’s new governor and legislator rejected their high speed rail, California gets a new $300 million which will be used to continue laying the groundwork for the nation’s first 220 mph high speed rail system in the state. The initial plan according to federal and Rail officials would be to run along the Central Valley as it would be the least expensive to begin. This is an essential part of the Obama Administrations proposed shovel ready projects. Thus the lion’s share of the $3.5 billion provided by the Obama administration must be spent on the rail line running between the tiny towns of Borden and Corcoran, Ca. Borden is outside of Merced and Corcoran is next to nowhere and is best known for its prison.
This can be chalked up to California’s continual poor planning as the CalHighSpeedRail Authority indicated earlier that there will be no ridership on the first phase. We believe they guarantee that with starting in sparsely populated Borden and Corcoran. Another issue that bogs the speedy trains is the disagreement with running the train from Bakersfield to Los Angeles via Lancaster and Palmdale Ca. Many including the LA Times writers want the direct route via Hwy 5 through the grapevine. They indicate it will save $1billion, and 30 miles. Yet, isn’t the trains objective to carry passengers? Bypassing Palmdale would eliminate potentially 700 thousand potential riders in Palmdale, Lancaster and Victorville. If the train is not potentially a commuter train, then why build it in urban areas like San Diego, LA, and San Jose, or it is only a train to compete with SouthWest airlines?
The final southern route into LA County will be debated, but there looks to be plenty of new opportunities along Hwy 99 as the White House and Governor Brown administration will not stand in the way of this moving train. Will it be a sign of more government waste by Democratic administrations, or a future jewel of the West U.S. Most land along Hwy 99 is farmland as we have been saying all along the farmers are the best long term land bankers over time. Check out our land along the future potential route in Lancaster Ca. via www.vacantlanddeals.com so you can be a land banker too.
This can be chalked up to California’s continual poor planning as the CalHighSpeedRail Authority indicated earlier that there will be no ridership on the first phase. We believe they guarantee that with starting in sparsely populated Borden and Corcoran. Another issue that bogs the speedy trains is the disagreement with running the train from Bakersfield to Los Angeles via Lancaster and Palmdale Ca. Many including the LA Times writers want the direct route via Hwy 5 through the grapevine. They indicate it will save $1billion, and 30 miles. Yet, isn’t the trains objective to carry passengers? Bypassing Palmdale would eliminate potentially 700 thousand potential riders in Palmdale, Lancaster and Victorville. If the train is not potentially a commuter train, then why build it in urban areas like San Diego, LA, and San Jose, or it is only a train to compete with SouthWest airlines?
The final southern route into LA County will be debated, but there looks to be plenty of new opportunities along Hwy 99 as the White House and Governor Brown administration will not stand in the way of this moving train. Will it be a sign of more government waste by Democratic administrations, or a future jewel of the West U.S. Most land along Hwy 99 is farmland as we have been saying all along the farmers are the best long term land bankers over time. Check out our land along the future potential route in Lancaster Ca. via www.vacantlanddeals.com so you can be a land banker too.
Sunday, May 15, 2011
How to Diversify Investments by Rolling Over or Transferring an IRA/401k into California Land Investment?
Most IRA’s and 401k are invested in stocks and bonds, but many are not aware that you can invest the money that you have in your IRA or 401K into land investment. This also includes investments such as other real estate, precious metals, and commodities.
You can simply do this by rolling your current IRA and/or 401K account into a new "Self Directed IRA" account at no major cost to you. You will also retain the tax deferred status without penalties as you have not cashed out your investment. The Self Directed IRA Company will do most of the work for you, but the stock brokerage may work to attempt to retain you as their customer.
Part of the reason a Self Directed IRA is more valuable is that it provides more control and choices. This control provides you the ability to invest in land, or precious metals like gold and silver which all are hedges against inflation. If you speak to a gold or silver investment company they typically suggest a five year hold in those precious metals. In addition, land investment companies also suggest a five year or longer hold. Longer term holds depends on the location of your land investment (distance from development), and your future retirement horizon goals.
There is a difference between and transfer and a rollover. When implementing a transfer your IRA assets are moved directly from one financial institution (typically a brokerage) to another without the IRA owner actually taking possession of the assets. An IRA transfer avoids any possible tax liabilities that could occur by taking possession of your IRA/401K funds, while a rollover occurs when an individual requests a distribution from an IRA or a Qualified Retirement Plan. Your investment firm would then roll the funds into the Self Directed IRA. According to IRA laws you are allowed only one roll-over in any 12 month period. Of the three types of rollovers a Qualified Retirement Plan Direct rollover is not treated under this 12 month rule, while the other two rollovers IRA roll over and a Qualified Retirement Plan rollover are.
An IRA Rollover occurs when an individual has personally taken the distribution of funds from their IRA. You then have 60 days to rollover the distribution into another IRA. If this is not completed in the 60 day period you would be subject to a 10% tax penalty.
The process begins by your establishment of a self directed IRA account. You then initiate the transfer with a transfer form provided by your current IRA holding custodial.
You then designate the new self directed IRA custodial and they receive your funds as the new custodial. You don’t have to transfer your entire IRA/401k but just as much as you need for the new investment.
Your new self directed IRA is now available to receive California land investment. VacantLandDeals specializes in low priced and low capital land investment opportunities. They have land near development typically with ideal zoning in the path of growth for future urban development providing your exit strategy in five to fifteen years. VacantLandDeals also specializes in investment capital under $50k and some investments fewer than twenty thousand, so the low capital and low risk investment has the opportunity to mature. Go to http://www.vacantlanddeals.com/lands-for-sale/ to review an investment opportunity.
You can simply do this by rolling your current IRA and/or 401K account into a new "Self Directed IRA" account at no major cost to you. You will also retain the tax deferred status without penalties as you have not cashed out your investment. The Self Directed IRA Company will do most of the work for you, but the stock brokerage may work to attempt to retain you as their customer.
Part of the reason a Self Directed IRA is more valuable is that it provides more control and choices. This control provides you the ability to invest in land, or precious metals like gold and silver which all are hedges against inflation. If you speak to a gold or silver investment company they typically suggest a five year hold in those precious metals. In addition, land investment companies also suggest a five year or longer hold. Longer term holds depends on the location of your land investment (distance from development), and your future retirement horizon goals.
There is a difference between and transfer and a rollover. When implementing a transfer your IRA assets are moved directly from one financial institution (typically a brokerage) to another without the IRA owner actually taking possession of the assets. An IRA transfer avoids any possible tax liabilities that could occur by taking possession of your IRA/401K funds, while a rollover occurs when an individual requests a distribution from an IRA or a Qualified Retirement Plan. Your investment firm would then roll the funds into the Self Directed IRA. According to IRA laws you are allowed only one roll-over in any 12 month period. Of the three types of rollovers a Qualified Retirement Plan Direct rollover is not treated under this 12 month rule, while the other two rollovers IRA roll over and a Qualified Retirement Plan rollover are.
An IRA Rollover occurs when an individual has personally taken the distribution of funds from their IRA. You then have 60 days to rollover the distribution into another IRA. If this is not completed in the 60 day period you would be subject to a 10% tax penalty.
The process begins by your establishment of a self directed IRA account. You then initiate the transfer with a transfer form provided by your current IRA holding custodial.
You then designate the new self directed IRA custodial and they receive your funds as the new custodial. You don’t have to transfer your entire IRA/401k but just as much as you need for the new investment.
Your new self directed IRA is now available to receive California land investment. VacantLandDeals specializes in low priced and low capital land investment opportunities. They have land near development typically with ideal zoning in the path of growth for future urban development providing your exit strategy in five to fifteen years. VacantLandDeals also specializes in investment capital under $50k and some investments fewer than twenty thousand, so the low capital and low risk investment has the opportunity to mature. Go to http://www.vacantlanddeals.com/lands-for-sale/ to review an investment opportunity.
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.
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
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
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